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SpaceX Starlink competitor OneWeb misled the FCC, media with false “near-miss” narrative
In the latest trials and tribulations of a SpaceX Starlink competitor that went bankrupt after spending $3 billion to launch just 74 small internet satellites, it appears that OneWeb knowingly misled both media and US regulators over a claimed “near-miss” with a Starlink satellite.
Back on April 9th, OneWeb went public with claims that SpaceX had mishandled its response to a routine satellite collision avoidance warning from the US military, which monitors the location of satellites and space debris. According to OneWeb government affairs chief Chris McLaughlin, SpaceX disabled an automated system designed to detect and automatically command Starlink satellite collision avoidance maneuvers to let OneWeb move its satellite instead. McLaughlin also stated that “Coordination is the issue – it is not sufficient to say ‘I’ve got an automated system.’”
He also recently criticized the maneuverability of Starlink satellites, claiming that “Starlink’s engineers said they couldn’t do anything to avoid a collision and switched off the collision avoidance system so OneWeb could maneuver around the Starlink satellite without interference.” As it turns out, OneWeb’s “near-miss” appears to have been a farce and the company scrambled to promise to retract those statements in an April 20th meeting with the FCC and SpaceX.
In far more egregious comments made on April 20th to the Wall Street Journal, a publication with a long history of blindly disseminating anti-SpaceX rhetoric, McLaughlin likened OneWeb’s satellites to “Ford Focus” cars and attempted to lambast Starlink satellites by comparing them to “Teslas: They launch them and then they have to upgrade and fix them, or even replace them altogether.”
Over the past 17 months, SpaceX has launched more than 1380 operational Starlink v1.0 satellites, some 870 of which are operational. Another ~440 are in the process of reaching operational orbits. All told, some 1365 are still in orbit and around 1345 of those satellites are working as expected for a total Starlink v1.0 failure rate of roughly 2.5%. As is SpaceX’s bread and butter, however, reliability has been continuously improving and of ~960 Starlink satellites launched over the last ~12 months, the overall failure rate has dropped to less than 1% – an almost threefold improvement.
After exiting bankruptcy last November, OneWeb has completed just two more launches for a total of 140 operational satellites in orbit of a planned ~650. Operating at a much higher ~1200 km (~750 mi) orbit, any failure of OneWeb satellites would produce debris that could remain in orbit for decades, whereas SpaceX has explicitly chosen much lower ~550 km (~340 mi) orbits, meaning that debris reenters in a matter of years. At Starlink’s sub-300-kilometer (~185 mi) insertion orbit, any faulty satellites screened during SpaceX’s checkout process reenter in a matter of days or weeks thanks to drag from Earth’s atmosphere.
The first phase of SpaceX’s Starlink constellation will require approximately 4400 satellites in low Earth orbit (LEO) and the company is already almost a third of the way to that milestone. A second phase could see those numbers grow as high as ~12,000, followed by a third phase with more than 40,000 satellites much further down the road. Relative to OneWeb, Starlink is dramatically more ambitious and each SpaceX satellite offers superior bandwidth and latency in a bid to blanket the Earth in affordable, high-quality broadband internet.
Of course, as a consequence of needing so many satellites to build out a network with enough bandwidth to serve tens to hundreds of millions of people, there is an obvious risk that unreliable satellites could make LEO a much more challenging place to operate for both SpaceX and the rest of the world. It also demands an entirely new approach to collision avoidance given the impracticality of human operators manually managing a fleet of thousands – or tens of thousands – of satellites.
Towards that end, SpaceX is developing an autonomous collision avoidance system – though virtually nothing is known about that system outside of the company, creating a far from optimal situation for all other satellite operators. Nevertheless, aside from one publicized avoidance maneuver in 2019, SpaceX appears to be quickly becoming a responsible and (mostly) transparent operator and custodian.
In an apparent attempt to capitalize on vague fears of “space debris” and satellite collisions, OneWeb – or perhaps just McLaughlin – took it upon itself to consciously misconstrue a routine, professional process of collision-avoidance coordination between OneWeb and SpaceX. McLaughlin ran a gauntlet of media outlets to drag SpaceX through the mud and criticize both the company’s technology and response, ultimately claiming that SpaceX’s Starlink satellite was incapable of maneuvering out of the way.
Instead, according to a precise, evidenced timeline of events presented by SpaceX to the FCC, the coordination was routine, uneventful, and entirely successful. OneWeb itself explicitly asked SpaceX to disable its autonomous collision avoidance software and allow the company to maneuver its own satellite out of the way after SpaceX made it clear that the Starlink spacecraft could also manage the task. The event was neither “urgent” or a “close call,” as OneWeb and media outlets later claimed. SpaceX says it has been coordinating similar avoidance maneuvers with OneWeb since March 2020.
Most damningly, SpaceX says that immediately after OneWeb disseminated misleading quotes about the event to the media, “OneWeb met with [FCC] staff and Commissioners [to demand that] unilateral conditions [be] placed on SpaceX’s operations.” Those conditions could have actually made coordination harder, “demonstrating more of a concern with limiting [OneWeb’s] competitors than with a genuine concern for space safety.” Crucially, despite lobbying to restrict its competitors, “OneWeb [has] argued forcefully that [it] should be exempt from Commission rules for orbital debris mitigation due to their status as non-U.S. operators.”
In simple terms, OneWeb is trying to exploit the FCC to suppress its competition while letting it roam free of the exact same regulations. Meanwhile, SpaceX is focused on launching satellites and serving tens of thousands of beta customers as Starlink speeds towards virtually uninterrupted global coverage barely a year and a half after operational launches began – all while coordinating with dozens of other satellite operators to be the best ‘neighbor’ it can be in space.
Elon Musk
Rumored SpaceX-xAI merger gets apparent confirmation from Elon Musk
The comment follows reports that the rocket maker is weighing a transaction that could further consolidate Musk’s space and AI ventures.
Elon Musk appeared to confirm reports that SpaceX is exploring a potential merger with artificial intelligence startup xAI by responding positively to a post about the reported transaction on X.
Musk’s comment follows reports that the rocket maker is weighing a transaction that could further consolidate his space and AI ventures.
SpaceX xAI merger
As per a recent Reuters report, SpaceX has held discussions about merging with xAI, with the proposed structure potentially involving an exchange of xAI shares for SpaceX stock. The value, structure, and timing of any deal have not been finalized, and no agreement has been signed.
Musk appeared to acknowledge the report in a brief reply on X, responding “Yeah” to a post that described SpaceX as a future “Dyson Swarm company.” The comment references a Dyson Swarm, a sci-fi megastructure concept that consists of a massive network of satellites or structures that orbit a celestial body to harness its energy.
Reuters noted that two entities were formed in Nevada on January 21 to facilitate a potential transaction for the possible SpaceX-xAI merger. The discussions remain ongoing, and a transaction is not yet guaranteed, however.
AI and space infrastructure
A potential merger with xAI would align with Musk’s stated strategy of integrating artificial intelligence development with space-based systems. Musk has previously said that space-based infrastructure could support large-scale computing by leveraging continuous solar energy, an approach he has framed as economically scalable over time.
xAI already has operational ties to Musk’s other companies. The startup develops Grok, a large language model that holds a U.S. Department of Defense contract valued at up to $200 million. AI also plays a central role in SpaceX’s Starlink and Starshield satellite programs, which rely on automation and machine learning for network management and national security applications.
Musk has previously consolidated his businesses through share-based transactions, including Tesla’s acquisition of SolarCity in 2016 and xAI’s acquisition of X last year. Bloomberg has also claimed that Musk is considering a merger between SpaceX and Tesla in the future.
Tesla analyst Gary Black of The Future Fund claims that the company is making a big mistake getting rid of the Model S and Model X. Instead, he believes another vehicle within the company’s lineup should be discontinued: the Cybertruck.
Black divested The Future Fund from all Tesla holdings last year, but he still covers the stock as an analyst as it falls in the technology and autonomy sectors, which he covers.
In a new comment on Thursday, Black said the Cybertruck should be the vehicle Tesla gets rid of due to the negatives it has drawn to the company.
The Cybertruck is also selling in an underwhelming fashion considering the production capacity Tesla has set aside for it. It’s worth noting it is still the best-selling electric pickup on the market, and it has outlasted other EV truck projects as other manufacturers are receding their efforts.
Black said:
“IMHO it’s a mistake to keep Tesla Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully autonomous?”
IMHO it’s a mistake to keep $TSLA Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully…
— Gary Black (@garyblack00) January 29, 2026
On Wednesday, CEO Elon Musk confirmed that Tesla planned to transition Model S and Model X production lines at the Fremont Factory to handle manufacturing efforts of the Optimus Gen 3 robot.
Musk said that it was time to wind down the S and X programs “with an honorable discharge,” also noting that the two cars are not major contributors to Tesla’s mission any longer, as its automotive division is more focused on autonomy, which will be handled by Model 3, Model Y, and Cybercab.
Tesla begins Cybertruck deliveries in a new region for the first time
The news has drawn conflicting perspectives, with many Tesla fans upset about the decision, especially as it ends the production of the largest car in the company’s lineup. Tesla’s focus is on smaller ride-sharing vehicles, especially as the vast majority of rides consist of two or fewer passengers.
The S and X do not fit in these plans.
Nevertheless, the Cybertruck fits in Tesla’s future plans. Musk said the pickup will be needed for the transportation of local goods. Musk also said Cybertruck would be transitioned to an autonomous line.
In a groundbreaking new report from Reuters, SpaceX is reportedly discussing merger possibilities with xAI ahead of the space exploration company’s plans to IPO later this year, in what would be a blockbuster move.
The outlet said it would combine rockets and Starlink satellites, as well as the X social media platform and AI project Grok under one roof. The report cites “a person briefed on the matter and two recent company filings seen by Reuters.”
Musk, nor SpaceX or xAI, have commented on the report, so, as of now, it is unconfirmed.
With that being said, the proposed merger would bring shares of xAI in exchange for shares of SpaceX. Both companies were registered in Nevada to expedite the transaction, according to the report.
On January 21, both entities were registered in Nevada. The report continues:
“One of them, a limited liability company, lists SpaceX and Bret Johnsen, the company’s chief financial officer, as managing members, while the other lists Johnsen as the company’s only officer, the filings show.”
The source also stated that some xAI executives could be given the option to receive cash in lieu of SpaceX stock. No agreement has been reached, nothing has been signed, and the timing and structure, as well as other important details, have not been finalized.
SpaceX is valued at $800 billion and is the most valuable privately held company, while xAI is valued at $230 billion as of November. SpaceX could be going public later this year, as Musk has said as recently as December that the company would offer its stock publicly.
The plans could help move along plans for large-scale data centers in space, something Musk has discussed on several occasions over the past few months.
At the World Economic Forum last week, Musk said:
“It’s a no-brainer for building solar-powered AI data centers in space, because as I mentioned, it’s also very cold in space. The net effect is that the lowest cost place to put AI will be space and that will be true within two to three years, three at the latest.”
He also said on X that “the most important thing in the next 3-4 years is data centers in space.”
If the report is true and the two companies end up coming together, it would not be the first time Musk’s companies have ended up coming together. He used Tesla stock to purchase SolarCity back in 2016. Last year, X became part of xAI in a share swap.
Rumored SpaceX-xAI merger gets apparent confirmation from Elon Musk
Tesla analyst claims another vehicle, not Model S and X, should be discontinued
