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Welcome to The AI Report — the #1 AI newsletter for business leaders.
We believe you don’t need to be technical. Just informed.
Inside: real-world use cases and Partner Perspectives you won’t find anywhere else:
• 1. 💻 Get rid of your personal data from Google with Incogni
• 2. 🚀 Elon Musk merges SpaceX with xAI at $1.25tn valuation
• 3. 📊 How AI lifted e-commerce conversions by 24%
• 4. 👥 Scale your LinkedIn with Linked Agency
• 5. 🔌 Anthropic moves into legal tech with Cowork plugins
• 6. 🔭 AI uncovers 1,300 cosmic anomalies in Hubble archive
Read Time: 5 minutes
TOGETHER WITH INCOGNI
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Latest in AI
Elon Musk merges SpaceX with xAI at $1.25tn valuation
🚨 Our Report
Elon Musk's aerospace company SpaceX has acquired his artificial intelligence business xAI in a $1.25tn merger, consolidating part of Musk's empire as SpaceX prepares to go public later this year. The combined company will include xAI's Grok chatbot and the social media platform X.
🔓 Key Points
The deal valued SpaceX at $1tn and xAI at $250bn, with the combined business expected to float on the stock market in early summer 2026.
SpaceX cited space-based datacenters as a key rationale, claiming that global electricity demand for AI cannot be met with terrestrial solutions.
The merger follows Musk's pattern of intertwining businesses: xAI acquired X in an all-stock transaction in early 2025, and Tesla plans to invest $2bn in xAI.
🔐 Relevance
The companies describe this merger as "the most ambitious, vertically-integrated innovation engine on (and off) Earth," combining AI, rockets, space-based internet, and direct-to-mobile communications. The deal comes amid criticism of xAI's Grok chatbot over content moderation issues. For enterprises tracking AI infrastructure, the IPO and Musk's push into space-based computing will shape the sector's trajectory.
Partner Perspective
Your School May Be Wiretapping Without Knowing It
Partner Column exclusively available in this edition of The AI Report
By Karen Odash — Labor And Employment Attorney at Fisher Phillips
“The fastest-growing legal risks often come from the most routine decisions.”
Case Study
How AI lifted e-commerce conversions by 24%
Session AI helps e-commerce brands predict purchase intent within visitors' first five clicks, converting anonymous browsers into buyers.
Pattern: AI predicts intent and delivers personalized offers autonomously. Humans set rules, review edge cases, and approve promotions.
Why it matters: 90% of e-commerce sessions are anonymous, meaning traditional marketing misses most buyers. Real-time intent prediction captures overlooked revenue.
Metric: Forever 21 saw a 24% conversion lift by using behavioral AI to personalize shopping experiences for undecided visitors.
Steal this: Pick one high-traffic page on your site. Use AI to flag exit-intent visitors, then test a single targeted offer this week.
TOGETHER WITH LINKED AGENCY
Scale Your LinkedIn Without Burning Out
Most founders know LinkedIn drives business. Few know how to scale it. That’s where Linked Agency comes in. We turn your profile into a client-winning machine - without the endless posting grind. With Linked Agency, you’ll get:
Done-for-you LinkedIn content that attracts qualified leads
AI-enhanced systems to multiply reach and conversions
Proven frameworks trusted by 100+ founders and executives
Our team has grown profiles to 100k+ followers and built six-figure pipelines - all while clients focus on running their businesses. Skip the guesswork and watch growth compound.
AI News Story
Anthropic moves into legal tech with Cowork plugins
Anthropic has launched legal-focused plugins for its agentic Cowork platform, extending Claude's capabilities into contract review, redlining, and document analysis. The plugins bundle domain-specific skills, connectors, and sub-agents designed to make Claude function like a legal team member rather than a general assistant.
The move adds pressure on specialized legal AI vendors. Contract review features include playbook integration, clause-by-clause risk assessment, and automated redline generation with fallback positions. All plugins are available now to paid Claude users, with org-wide deployment support coming in the weeks ahead.
For legal tech companies selling commoditized AI skills, the threat is direct. As Artificial Lawyer put it: "Why buy a tool that is no better than the legal plugin above?"
AI News Story
AI uncovers 1,300 cosmic anomalies in Hubble archive
ESA researchers built an AI model called AnomalyMatch that discovered 1,300 cosmic anomalies in archived Hubble Space Telescope images, including hundreds of objects that have never been documented before.
The AI processed nearly 100 million image cutouts in under three days, making it the first systematic search for anomalies across the entire Hubble Legacy Archive, which spans 35 years of deep space observation.
Many of the newly discovered objects defy classification, including merging galaxies, "jellyfish" galaxies with gaseous tentacles, and planet-forming disks resembling hamburgers, opening new avenues for astrophysical research.
Trending AI Tools (sponsored by our tools database)
A curated look at the AI tools quietly transforming how teams work.
Companies to Watch/Raising Now
Early-stage AI startups on our radar, before they’re everywhere.
• Fieldguide
What they do: Automates audit and advisory workflows, from risk assessments to compliance checks, on a single cloud platform.
Why it matters: Just closed a $75M Series C led by Goldman Sachs at a $700M valuation. Audit firms are under pressure to move faster without compromising quality, and Goldman backing the infrastructure play suggests this is where the industry is headed.
Stage: Series C
Raising: $75M
Investors: Goldman Sachs Alternatives (lead)
• Tomorrow.io
What they do: Builds AI-driven weather satellites that generate more atmospheric data than the rest of the industry combined.
Why it matters: Now valued at over $1B with $175M in fresh funding. Six of the ten satellites feeding global forecasts are retiring this decade, and Tomorrow.io is positioning as the private replacement. Already runs 13 satellites and claims $100M ARR.
Stage: Growth
Raising: $175M
Investors: Stonecourt Capital (lead), HarbourVest
Know a company we should be watching? Hit reply and let us know.
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