Good Morning. Elon Musk just merged his rocket company with his AI startup, creating something unprecedented. Here's why this $1.25 trillion deal matters.
We also share how to negotiate a car in the tech age, the housing market shift, and Kid Rock’s alternate halftime show (forwarded this email? Join 523K readers).
TOP STORY TODAY
SpaceX Acquires xAI
Elon Musk announced that SpaceX acquired his artificial intelligence startup xAI, forming a combined company valued at $1.25 trillion. The merger brings together SpaceX's rocket and Starlink satellite operations with xAI's chatbot Grok and large-language model development. Financial terms weren't disclosed, though xAI was valued at approximately $250 billion in the deal. Announcement here.
SpaceX previously invested $2 billion in xAI and served as an early customer for AI-powered Starlink support features. The merger follows Musk's pattern of consolidating his business empire (Tesla acquired SolarCity in 2016, xAI merged with X in 2025). XAI shares convert to SpaceX stock at a 0.1433 ratio.
Musk envisions using space-based solar power for AI data centers, addressing ground-based energy constraints. SpaceX filed Friday to deploy up to one million satellites for orbital AI computing, pending regulatory approval. The concept remains unproven and faces significant engineering challenges. Every Elon Musk business, explained.
Housing Favors Buyers
Nearly two-thirds of home buyers in 2025 purchased below the original listing price, the highest proportion since 2019, according to Redfin analysis. The average discount reached approximately 8%, the largest since 2012 (WSJ). Buyers are also securing seller concessions including cash for closing costs and mortgage rate buydowns.
The market has reversed from 2020-2022's robust seller's market when bidding wars were routine. December saw over 600,000 more sellers than buyers, the largest gap in Redfin's records dating to 2013. High home prices and elevated mortgage rates have sidelined many potential buyers, giving active purchasers increased negotiating power.
Southern markets, particularly Florida and Texas, show the strongest buyer advantages due to recent construction increasing supply. West Palm Beach, Fort Lauderdale, and Miami saw at least 85% of buyers pay under listing price. Existing home sales jumped 5.1% in December, the biggest gain in nearly two years. Buyer vs Seller market.
Punxsutawney Phil Predicts
Punxsutawney Phil saw his shadow Monday morning at Gobbler's Knob, predicting six more weeks of winter during the 140th annual Groundhog Day celebration. An estimated 30,000 people braved single-digit temperatures to witness the prognostication.
According to tradition, when Phil sees his shadow, he interprets it as six more weeks of bad weather and returns to his hole. If no shadow appears, it signals early spring. The celebration has roots in the Christian holiday Candlemas, later combined with German weather folklore featuring hibernating animals as forecasters.
Phil also predicted extended winter in 2025. His all-time record includes 107 predictions of continued winter and 21 calls for early spring. Groundhog Day remains a popular tradition in the United States and Canada, bringing communities together each February 2. See video.
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TODAY’S LIFE ADVICE
The Simple Way to Stay Lean Year Round
Stop counting calories and weighing food. Focus on whole, single-ingredient sources with high bioavailability that your body actually digests properly, not processed alternatives that fit macros on paper.
Key principles for natural lifters:
Eat 0.8-1g protein per pound of body weight across three meals
Consider intermittent fasting for flexible eating windows
Treat your body like a supercar: fuel it accordingly
Make healthier sweet alternatives using dates, raw honey, fruits, and 90%+ dark chocolate
Build the plate: Include quality protein (lean meat, poultry, fish), colorful vegetables for micronutrients, and clean carbs (potato, rice, quinoa). Lean bulk with 300-500 calorie surplus using whole foods only. Slower muscle growth beats dirty bulking's long-term metabolic consequences.
How to Negotiate Car Price in 2026
Start negotiations remotely through email or phone quotes from dealers. Research comparable vehicle prices and interest rates matching your credit before any discussions begin. Focus exclusively on the all-in price including taxes, fees, and total loan interest.
Calculate long-term costs, not just monthly payments, since dealers often extend loan terms to lower payments artificially. Negotiate beyond sticker price. Ask dealers to match preapproved loan rates, research your trade-in value independently, and bargain on add-ons like extended warranties.
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