Orbit AI🛰️

Cursor is raising at a $50 billion valuation. Elon just pulled two of its product leaders into a $1.25 trillion company and told them to build xAI’s coding product. Both report directly to him. Milich and Ginsberg ran engineering and product at the company that went from $0 to $2 billion ARR faster than any SaaS product in history. They shipped the web app, the CLI, the background agents, Cursor 2.0. AI coding is now a $5 billion+ market. Cursor at $2B ARR. Claude Code at $2.5B run-rate, doubling since January 1. GitHub Copilot past $1B with 4.7 million paying subscribers. Every frontier lab has a coding product printing money. xAI is the only one that doesn’t. That changes fast when you hand two people who already built a $2B coding business the keys to Grok’s model stack and tell them to ship. xAI has 100,000 H100s in the Memphis Colossus cluster. It has Grok 3 and whatever comes after it. What it lacked was product leadership that has actually scaled a coding tool through the $0 to $1B to $2B arc. Now it has both. Milich interned at SpaceX ten years ago working on Dragon 2 crew displays, back when the company was still figuring out barge landings. He left, co-founded Skiff, sold it to Notion, joined Cursor before it was Cursor, and helped build the product that now has more annualized revenue than GitHub did when Microsoft bought it for $7.5 billion. The return to SpaceX with a decade of shipping product and the entire AI coding playbook is the kind of hire that compounds for years. SpaceX generated $15B in revenue and roughly $8B in profit last year. The AI side is burning cash. A coding product that captures even 5% of a $5B+ market in year one changes the unit economics of the entire xAI division. Every major AI lab figured out that developers are the highest-willingness-to-pay users on the planet. Elon just hired the two people who proved it.

Macrohard or Digital Optimus is a joint xAI-Tesla project, coming as part of Tesla’s investment agreement with xAI. Grok is the master conductor/navigator with deep understanding of the world to direct digital Optimus, which is processing and actioning the past 5 secs of real-time computer screen video and keyboard/mouse actions. Grok is like a much more advanced and sophisticated version of turn-by-turn navigation software. You can think of it as Digital Optimus AI being System 1 (instinctive part of the mind) and Grok being System 2. (thinking part of the mind). This will run very competitively on the super low cost Tesla AI4 ($650) paired with relatively frugal use of the much more expensive xAI Nvidia hardware. And it will be the only real-time smart AI system. This is a big deal. In principle, it is capable of emulating the function of entire companies. That is why the program is called MACROHARD, a funny reference to Microsoft. No other company can yet do this.

NEWS: SpaceX has added more than 18,000 new users per day on average to its Starlink Direct to Cell service so far this year, according to the company. Starlink Direct to Cell has now connected more than 13 million people, and counting, at least once, up from 12 million at the end of 2025.

BREAKING: 🇺🇸 NVIDIA BACKED COMPANY JUST ANNOUNCED TO MINE BITCOIN IN SPACE FOR THE FIRST TIME EVER IN HISTORY THIS IS ABSOLUTELY WILD 🤯

Young Elon basically mapped the stack before the stack existed. Internet. Energy. Multi-planetary infrastructure. Once those layers converge, sovereign compute in orbit stops sounding futuristic and starts looking inevitable.

Starship V3 SN1 headed for ground tests. I am highly confident that the V3 design will achieve full reusability.

🚨 Amazon, Google, Meta, Microsoft, xAI, Oracle and OpenAI are all going to the White House in March. They're signing a deal that lets them build their own private power plants for AI data centers. The U.S. national grid can't handle what they're building. So they're becoming their own electric companies.

JUST IN: Microsoft $MSFT partners with Elon Musk's Starlink.

Elon Musk isn't motivated by power or profit. His "epic missions" are fueled by a deep care for humanity and a desire to see human civilization thrive Whether it’s making us a space-faring species, transitioning the world to sustainable energy, or safeguarding us from the risks of AI, these goals were born from the superhero comics he read as a child At the core of his work is a fundamental goodness and a commitment to solving the world’s biggest challenges -Walter Isaacson

“One of the most important technologies we still need for Moon and Mars missions is orbital propellant transfer” —Elon Musk

I’ve predicted 2026 for a while now