FTC Clears Musk’s Acquisition of SpaceX Alumni Startup Mesh
Synopsis
Elon Musk has received regulatory approval to pursue Mesh Optical Technologies, whose founders previously built the optical links connecting SpaceX’s Starlink satellites.
Elon Musk has been given clearance from the U.S. Federal Trade Commission (FTC) to proceed with the proposed purchase of networking startup Mesh Optical Technologies, which was founded by former SpaceX engineers. The agency waived its usual 30-day antitrust review period, allowing the purchase to move forward.
The FTC ruling eliminates a crucial regulatory hurdle in the deal. The proposed acquisition terms have not been announced.
Startup Targets AI Data Centre Networks
Mesh Optical Technologies develops optical transceivers that use light to transfer data between servers inside data centres. It is designed to boost data transfer capabilities while cutting electricity consumption, which has become a growing concern with the rise of AI computing systems.
Travis Brashears, Cameron Ramos and Serena Grown-Haeberli are three former SpaceX employees who developed optical communication systems for the Starlink satellite network. Mesh has come out of stealth mode following a US$50 million Series A, which was led by Thrive Capital.
The proposed sale is part of a broader trend of investing in AI infrastructure driving technology spending. According to TrendForce, the global AI optical transceivers market is projected to grow to US$26 billion by 2026 from US$16.5 billion in 2025, as a result of increased investments in AI server networks and hyperscale data centres.
Infrastructure spending is continuing to increase
Large technology companies have increased investment in networking equipment as AI systems require faster communication between thousands of graphics processors (GPUs). Optical networking is becoming a growing part of data centre design, with computing chips being a core piece of the AI development process.
North America is still the biggest market for hyperscale AI infrastructure, and China is still building up its own AI capability. In addition, governments and technology companies all over Europe, such as Germany, France and the United Kingdom, are investing more into AI computing facilities.
As per TrendForce, Japan and South Korea have been scaling up their semiconductor manufacturing and AI infrastructure projects to meet demand in the region.
Mesh is still a fledgling firm, and the most recent round of funding revealed by the company is the US$50 million Series A round announced earlier this year. The FTC's approval clears the way for Musk to complete the proposed acquisition, subject to any remaining closing requirements.
Source: TechCrunch
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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