Elon Musk Secures FTC Approval to Acquire Data Center Optics Firm Mesh Optical
June 28, 2026
Elon Musk Secures FTC Approval to Acquire Data Center Optics Firm Mesh Optical
Elon Musk has received U.S. Federal Trade Commission (FTC) clearance to acquire Mesh Optical, a privately held data center optics company specializing in high-speed transceivers. The deal marks a significant expansion of Musk’s infrastructure footprint into the optical interconnect market, a critical layer for next-generation data center networks.
Mesh Optical has developed 1.6 terabit (T) transceivers that consume roughly one-third the power of competing products, according to sources familiar with the technology. This efficiency advantage is seen as a key driver behind Musk’s interest, particularly as hyperscale data center operators face mounting pressure to curb energy consumption and cooling costs. The acquisition is expected to accelerate the deployment of low-power, high-bandwidth optics across Musk’s growing portfolio of AI and cloud computing ventures.
The FTC’s approval, which concluded a routine antitrust review, clears the path for the transaction to close in the coming weeks. Neither party disclosed the financial terms of the deal, but industry analysts estimate the valuation could exceed several hundred million dollars based on Mesh Optical’s proprietary silicon photonics technology and existing customer contracts.
Industry observers note that the acquisition positions Musk to vertically integrate optical components into his broader data center operations, potentially reducing reliance on external suppliers like Coherent and Lumentum. The move also aligns with a broader trend among major tech firms to secure supply chains for high-speed interconnects, which are increasingly vital for distributed computing and large-scale AI model training.
Source: datacenterdynamics
