The post Chinese stake in Musk’s SpaceX is ‘national security threat,’ US senators warn  appeared on BitcoinEthereumNews.com. Senator Elizabeth Warren and Andy The post Chinese stake in Musk’s SpaceX is ‘national security threat,’ US senators warn  appeared on BitcoinEthereumNews.com. Senator Elizabeth Warren and Andy

Chinese stake in Musk’s SpaceX is ‘national security threat,’ US senators warn

3 min read

Senator Elizabeth Warren and Andy Kim recently sent a letter to Defense Secretary Pete Hegseth in which they raised concerns about undisclosed investments in SpaceX by Chinese interests and how that could pose a national security threat. 

The letter comes days after Musk revealed he was merging two of his companies, SpaceX and xAI, in a deal reportedly worth $1.25 trillion. 

Why do Warren and Kim want to investigate SpaceX?

The two Democratic U.S. senators have urged the Pentagon to conduct an immediate review of SpaceX amid the allegations, which come complete with media reports and court testimony suggesting that investors linked to China routed funds through entities in the Cayman Islands and British Virgin Islands to mask purchases of SpaceX shares.

According to the senators, any Chinese ownership could trigger U.S. rules governing foreign ownership, control or influence, known as FOCI, given the potential exposure of sensitive information or technologies.

In their letter, the senators asked the Department of Defense to disclose the extent of any Chinese ownership, assess whether SpaceX is subject to FOCI mitigation requirements, and also determine whether foreign investments should be reviewed by the Committee on Foreign Investment in the United States. 

The senators have demanded a response by February 20. They argue that SpaceX’s recent acquisition of xAI further adds to the immediacy of questions about Chinese investment in the company.

Senators target Musk after merger 

At the beginning of the week, Elon Musk revealed he was merging two of his companies SpaceX and xAI, in a deal reportedly worth $1.25 trillion. 

The reason behind this merger is that Musk is convinced that in order for AI to grow, it needs to go to space. This is because at present, AI is dependent on “large terrestrial data centers” that run on “immense amounts of power and cooling.”

This comes at great cost to the environment and has seen community opposition from residents who have had to endure the constant humming of the data centers and their other, less popular side effects. 

Musk believes installing data centers in space is the solution. “In the long term, space-based AI is obviously the only way to scale,” Musk said.

Of course, he is not the only one who has thought of putting data centers into orbit. Google has tasked Project Suncatcher with building solar-powered AI data centers in space, while China and Europe are looking into space-based data centers.

Some think that he is doing this as a way to bail out xAI, which has been relatively unprofitable unlike SpaceX. In fact, not only is xAI not profitable, it’s losing serious cash as it races to keep up with rivals like Google and OpenAI. 

How investors feel about the merger is unclear at this time. However, it is crucial to note that it is not Musk’s first rodeo. He did the same thing in the past when he merged the debt-ridden SolarCity with Tesla in 2016. That plan faced resistance from shareholders who sued to block the merger, alleging it was a $2.6 billion “bailout” of a cash-strapped, struggling company. 

However, Musk eventually won the lawsuit, with a judge ruling that he did not force Tesla to overpay for SolarCity.

Source: https://www.cryptopolitan.com/chinese-stake-spacex-national-security/

Market Opportunity
Xai Logo
Xai Price(XAI)
$0.01
$0.01$0.01
-6.27%
USD
Xai (XAI) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.
Tags:

You May Also Like

BetFury is at SBC Summit Lisbon 2025: Affiliate Growth in Focus

BetFury is at SBC Summit Lisbon 2025: Affiliate Growth in Focus

The post BetFury is at SBC Summit Lisbon 2025: Affiliate Growth in Focus appeared on BitcoinEthereumNews.com. Press Releases are sponsored content and not a part of Finbold’s editorial content. For a full disclaimer, please . Crypto assets/products can be highly risky. Never invest unless you’re prepared to lose all the money you invest. Curacao, Curacao, September 17th, 2025, Chainwire BetFury steps onto the stage of SBC Summit Lisbon 2025 — one of the key gatherings in the iGaming calendar. From 16 to 18 September, the platform showcases its brand strength, deepens affiliate connections, and outlines its plans for global expansion. BetFury continues to play a role in the evolving crypto and iGaming partnership landscape. BetFury’s Participation at SBC Summit The SBC Summit gathers over 25,000 delegates, including 6,000+ affiliates — the largest concentration of affiliate professionals in iGaming. For BetFury, this isn’t just visibility, it’s a strategic chance to present its Affiliate Program to the right audience. Face-to-face meetings, dedicated networking zones, and affiliate-focused sessions make Lisbon the ideal ground to build new partnerships and strengthen existing ones. BetFury Meets Affiliate Leaders at its Massive Stand BetFury arrives at the summit with a massive stand placed right in the center of the Affiliate zone. Designed as a true meeting hub, the stand combines large LED screens, a sleek interior, and the best coffee at the event — but its core mission goes far beyond style. Here, BetFury’s team welcomes partners and affiliates to discuss tailored collaborations, explore growth opportunities across multiple GEOs, and expand its global Affiliate Program. To make the experience even more engaging, the stand also hosts: Affiliate Lottery — a branded drum filled with exclusive offers and personalized deals for affiliates. Merch Kits — premium giveaways to boost brand recognition and leave visitors with a lasting conference memory. Besides, at SBC Summit Lisbon, attendees have a chance to meet the BetFury team along…
Share
BitcoinEthereumNews2025/09/18 01:20
Tether Advances Gold Strategy With $150 Million Stake in Gold.com

Tether Advances Gold Strategy With $150 Million Stake in Gold.com

TLDR Tether buys $150M Gold.com stake to expand digital gold infrastructure Partnership links physical gold supply with blockchain settlement rails XAUT token distribution
Share
Coincentral2026/02/06 10:09
Payy Launches As Ethereum’s First Privacy-Enabled EVM L2

Payy Launches As Ethereum’s First Privacy-Enabled EVM L2

The post Payy Launches As Ethereum’s First Privacy-Enabled EVM L2 appeared on BitcoinEthereumNews.com. Crypto project Payy, which operates a privacy-focused wallet
Share
BitcoinEthereumNews2026/02/06 09:54