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SpaceX Spent $329M on Tesla Megapacks as AI Costs Climbed

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SpaceX spent $329 million on Tesla Megapack battery systems during the first half of 2026 as costs connected to its AI data center expansion rose sharply, according to a public quarterly filing with the Securities and Exchange Commission.

Purchases reached $295 million in the second quarter alone, up from $34 million in the first. The six-month total was already about 65% of the $506 million SpaceX recorded in Megapack purchases for all of 2025.

The increase adds another cost to the AI infrastructure equation. Beyond servers, networking, and cooling, large data centers need electrical systems that can respond quickly when thousands of chips raise or lower their power use at the same time.

Megapack purchases rose alongside AI infrastructure costs

SpaceX’s quarterly filing records the Megapacks as property, plant, and equipment. SpaceX acquired xAI on February 2 and now reports AI as one of its three operating segments.

Research and development costs in that segment increased by $2.53 billion during the first half of 2026 compared with the same period last year. SpaceX attributed $1.74 billion of the increase to infrastructure and cloud computing expenses associated with expanding its data centers.

The figures extend the picture presented in SpaceX’s initial public offering filing, which showed how deeply the company’s financial performance had become tied to xAI’s computing ambitions.

Megapacks can store electricity for use during periods of high demand, supply short-term backup power, and help stabilize fluctuations in a facility’s electrical load. The U.S. Department of Energy has described AI data centers as large, dynamic loads that can create repeated swings in electricity demand.

Those characteristics make battery storage useful even when a facility has access to the grid or its own generators. The batteries can respond faster than many generation sources when demand changes suddenly.

Batteries support, rather than replace, power generation

Megapacks do not produce electricity. They must be charged from the grid, renewable resources, or on-site generation before they can release power back to a data center.

SpaceX and xAI have been expanding those other sources as well. Musk’s acquisition of mobile power provider APR Energy could provide temporary or supplemental generation, while xAI has pursued gas-fired power for its Mississippi data centers.

Used together, generation and battery storage can serve different parts of the same workload. Generators and grid connections provide the electricity, while batteries help manage short-term changes, peaks, and interruptions.

The Tesla purchases appear in the filing’s related-party transactions section because Elon Musk leads both companies. SpaceX did not disclose how many Megapacks it bought, their combined storage capacity, where they are installed, or how long they could support a data center during an outage.

The purchase value therefore provides a clear measure of spending, but not of the systems’ performance. Capacity, discharge duration, and facility load would be needed to establish how much operational resilience the batteries provide.

For companies expanding AI capacity, SpaceX’s spending illustrates how quickly the power portion of a project can grow. Access to chips may determine what a data center can compute, but electricity supply, storage, and grid connections can determine when that computing capacity is ready to use.

Also read: Filings suggest Musk’s proposed Texas Terafab chip plant could cost up to $119 billion.

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Social media platforms still facing thousands of user addiction lawsuits after failed appeals

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Social media companies like Meta, TikTok, Snapchat, and Google are facing a long road of litigation over claims that they intentionally designed their products to be addictive to minors.

According to a report from Reuters, San Francisco’s 9th U.S. Circuit Court of Appeals denied these platforms’ attempt to defend themselves from thousands of lawsuits through an argument based on Section 230, which protects publishers and platforms from being held liable for users’ posts. The companies argued that Section 230 could also protect them from the claim that they did not warn the public about addictive design choices, but the court said the appeal may have come too soon, since this type of appeal usually arrives after a trial.

These thousands of lawsuits, which come from private individuals, state and local governments, and school districts, were consolidated into one federal suit and will proceed as such.

It’s too early to say how these addictive design lawsuits will pan out, but so far, Meta lost two lawsuits over similar issues, marking the first time that the platform was held liable over child safety concerns in jury trials.

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Aptoide becomes the first rival app store to return to Google Play in the US

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Competing Android app stores are now back on Google Play in the U.S., and Aptoide is the first to take advantage of the new option. On Monday, the Portugal-based app distributor brought its games store back to Google Play after more than a decade, crediting the loosening of restrictions that had been criticized as anticompetitive.

For the first time in many years, U.S. users will be able to install a competitor to Google’s Android app store directly from Google Play itself, a milestone in terms of opening the app market to more competition.

Aptoide’s independent app store is one of the larger Android app marketplaces outside of Google Play, offering more than 40,000 Android applications to its roughly 25 million monthly active users. The U.S. has been Aptoide’s largest market to date, but until now, the store had to be sideloaded on Android devices, limiting its reach.

Image Credits:Aptoide

That changed following U.S. District Judge James Donato’s ruling in the Epic Games lawsuit, which, among other things, now requires Google to allow the installation of third-party apps from outside the Play Store. As of June 22, 2026, Google began allowing third-party app stores to access Google Play’s app catalog through the Play Catalog Access Program. This allows competitors to access Google Play infrastructure, including its catalog of apps that can be offered to users, while remaining an independent store.

Epic Games first sued Google in 2020, alleging anticompetitive abuses in the Android app ecosystem. A jury trial ruled in Epic’s favor in 2023. Google appealed the ruling, but lost. Earlier this year, the comapny said it would drop Play Store commissions and make it easier for Android users to install alternative app stores.

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YouTube now requires creators to have twice as many watch hours to start earning money

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YouTube announced on Monday that new creators will have to meet higher thresholds to begin earning money from ads and subscriptions.

Creators who want to start earning on the platform will need at least 8,000 qualified watch hours over the past year or 20 million qualified Shorts views in the last 90 days. Currently, creators need 1,000 subscribers and 4,000 watch hours over the past year or 1,000 subscribers and 10 million Shorts views over the past 90 days.

The change is going into effect starting February 1. The Google-owned company says the update won’t impact creators already in the YouTube Partner Program.

Additionally, YouTube announced that creators will need to maintain 10 million Shorts views over a 90-day period to earn money through the Shorts Creators Pool. Channels below this threshold will remain in the partner program and continue earning on long-form content, with Shorts revenue resuming once they cross 10 million views again.

YouTube says the changes are being introduced to “keep pace with the growth of YouTube, which now sees over 200 billion daily Shorts views and over a billion hours of watch time on TV” every day.

The changes make it harder for creators to enter and remain in YouTube’s monetization program, especially for Shorts creators. By increasing thresholds, YouTube is putting more pressure on creators’ ability to consistently bring in large audiences before being able to earn money on the platform, which could in turn lead to fewer new entrants being able to monetize their content.

As part of Monday’s announcement, YouTube announced that it’s expanding its more affordable Premium Lite subscription to all countries where YouTube Premium is available. Creators receive a share of subscription revenue based on member watch time and views, with 55% going to long-form video creators and 45% to Shorts creators.

“With these additional subscribers, creators can expect higher earnings: when a user signs up for Premium, partners, on average, earn more than when the user was watching ads,” the company wrote in a blog post.

Premium Lite offers an ad-free experience on most videos, along with the ability to download videos for offline viewing and play videos in the background.

YouTube isn’t the only social media company revising its creator rewards programs. Over the weekend, Elon Musk’s X also revamped creator payouts by changing its guidelines to only reward original content. Earlier this spring, Facebook also launched a new monetization program to attract creators from TikTok and YouTube.

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