SpaceX Updates Starlink Privacy Policy to Allow AI Training as xAI Merger Talks and IPO Loom

SpaceX has revised its Starlink privacy policy to allow customer data to be used for artificial intelligence training, a move that could significantly support Elon Musk’s broader AI ambitions. The policy change comes as SpaceX prepares for a highly anticipated IPO later this year and holds discussions about a potential merger with Musk’s artificial intelligence company, xAI, according to a report by Reuters.

The updated Starlink Global Privacy Policy, published on January 15, states that unless users opt out, their data may be used to train machine learning and AI models. The policy also notes that this data could be shared with service providers and unspecified third-party collaborators. An archived version of the policy from November did not include any reference to AI training, highlighting a clear shift in SpaceX’s data strategy.

Starlink, which operates a constellation of more than 9,000 satellites, provides internet access to over 9 million users worldwide. Through its services, the company collects extensive user data, including location details, IP addresses, payment information, contact data, and communication-related content such as audio, visual materials, shared files, and derived inferences. However, the policy does not clearly specify which categories of data will be used to train AI systems, adding to growing privacy concerns.

Privacy advocates and consumer rights groups have raised alarms, arguing that the use of personal data for AI training could increase surveillance risks and create opportunities for misuse. Legal experts have also expressed concern over the lack of clear boundaries on how user data might ultimately be applied.

At the same time, SpaceX is reportedly in talks to merge with xAI, which was recently valued at $230 billion following a major funding round. Such a deal could dramatically expand xAI’s access to large-scale datasets, potentially accelerating the development of its Grok large language model and other AI-driven services. SpaceX, already the world’s most valuable private company, could see its valuation exceed $1 trillion after the IPO.

SpaceX has not commented publicly on the policy update or the reported merger talks, but the developments underscore how data, AI, and space-based connectivity are becoming increasingly interconnected in Musk’s expanding business ecosystem.