Reflection deal suggests SpaceX's Colossus could become its own business line

Summary

Deirdre Bosa reports on SpaceX signing a compute agreement with AI startup Reflection AI, marking another customer for Musk's growing data center business. Reflection AI, valued at $25 billion, is building open source frontier AI models to compete with China's DeepSeek. The deal highlights the accelerating open source AI movement, fueled by Anthropic restricting access to certain tools and Chinese labs rapidly closing the capability gap.

• SpaceX signs new compute deal with AI startup Reflection AI, adding to existing customers Anthropic, Google, and Cursor
• SpaceX's Colossus data center business shows signs of potentially becoming a standalone business line
• Reflection AI is valued at $25 billion and aims to be America's open source answer to China's DeepSeek
• Open source AI push is gaining momentum after Anthropic cut off access to Fable and Mythos
• Reflection AI has not yet released a public frontier model while Chinese competition moves quickly
• Industry insiders point to a recent GPU model as a potential contender and another DeepSeek moment