The FTC has cleared Elon Musk to acquire a data center optical networking business.

Founded by former SpaceX engineers, Mesh Optical Technologies develops optical transceivers for AI data centers. Its Alpha C1 transceiver supports 1.6T and 800G, and with the company claiming it uses a third of the power utilization of rival modules.

Mesh raised $50 million in a Series A this February.

The FTC's fast-track approval specifically lists Elon Musk as the acquiring company, rather than SpaceXAI. Musk, however, rarely appears to delineate between his public and private businesses, regularly cross-selling and shifting staff.

Before founding Mesh Optical, the company's co-founders, Travis Brashears, Cameron Ramos, and Serena Grown-Haeberli, developed the optical communication links connecting SpaceX’s Starlink satellite megaconstellation.

SpaceX, which recently went public in the biggest IPO ever, hopes to deploy up to a million data center satellites into orbit. Its xAI subsidiary continues to operate and build terrestrial data centers, a portion of which it has sublet to Anthropic, Google, and Reflection.

The company also plans to partner with Musk's business, Tesla, on chip manufacturing, under a project known as TeraFab.