SpaceX revised its Starlink privacy policy in mid-January to allow the satellite internet provider to use customer data for training artificial intelligence models, marking a significant shift in how the company handles user information. The updated Global Privacy Policy, which took effect on January 15, states that unless users actively opt out, their data may be shared with service providers and third-party collaborators to develop machine learning and AI systems.
The policy change comes as SpaceX, which operates the Starlink satellite network, engages in merger discussions with Elon Musk’s AI company xAI. SpaceX is preparing for a blockbuster initial public offering later this year and could reach a valuation exceeding one trillion dollars following the IPO. The potential merger with xAI, which was most recently valued at 230 billion dollars, would combine the space company’s vast data resources with xAI’s AI development capabilities, particularly its Grok large language model chatbot.
What Data Starlink Collects
Starlink gathers extensive personal information from its more than 9 million users worldwide. According to the company’s privacy policy, this includes location information continuously tracked to provide satellite coverage, credit card and contact details from user profiles, IP addresses, and usage patterns showing when and how users connect to networks. The company also collects communication data, which encompasses audio and visual information, data contained in shared files, and inferences drawn from other personal information.
The policy does not specify exactly which data will be used for AI training purposes or identify the third-party collaborators who may receive access to user information. This lack of clarity has raised concerns among privacy experts and consumer advocacy groups.
Comparing Old and New Policies
An archived version of Starlink’s privacy policy from November did not contain any language about using customer data to train AI models. The January 15 update introduced explicit provisions allowing data use “to train our machine learning or artificial intelligence models” and permitting sharing with third-party collaborators. This represents a deliberate and recent change in how SpaceX approaches user data.
The shift aligns with broader industry trends as technology companies seek rich datasets to refine their AI capabilities. Satellite internet data offers unique geographic, behavioral, and network-use signals that centralized tech platforms cannot easily replicate.
Privacy Concerns and Expert Reactions
Technology law professor Anupam Chander from Georgetown University expressed concern about the policy update. He stated that the change would worry him if he were a Starlink user, noting that while there may be perfectly legitimate uses for the data, the policy lacks clear limits on how it will be utilized.
Privacy advocates and consumer rights groups argue that using personal data for AI training expands surveillance risks and creates new opportunities for misuse. Critics point to several specific issues with the updated policy. The default opt-in model undermines informed consent, requiring users to take action to protect their privacy rather than granting permission first. The broad language around data use could enable extensive user profiling. Third-party access remains unspecified and potentially unlimited. Finally, the deep geographic and network data collected by satellite systems could be exploited for unforeseen commercial or political purposes.
How to Opt Out
Starlink users who want to prevent their data from being used for AI training can opt out through their account settings. To do so, users must navigate to their user settings and select the relevant option to disable data sharing for artificial intelligence model training by third-party collaborators. Some users have reported technical difficulties when attempting to change this setting.
Even after opting out of AI training data use, questions remain about how Starlink manages other categories of data collection and usage outlined in the privacy policy.
Strategic Business Implications
The policy change reflects SpaceX’s evolving business strategy as artificial intelligence becomes central to technology competition. Companies across the industry are searching for high-quality datasets to improve their AI models, and SpaceX’s satellite network provides access to information that few other companies can match.
Starlink operates more than 9,000 satellites that provide internet connectivity to users globally, including households, businesses, ships at sea, and remote communities. The network’s scale and geographic reach make it a valuable data source for AI development. When integrated with xAI’s existing capabilities and Musk’s social media platform X, the combined entity could become a significant force in the AI landscape.
Regulatory Context
The privacy policy update arrives during a period of uneven global AI regulation. In Europe, frameworks like the General Data Protection Regulation and the AI Act provide consumers with stronger protections, including data minimization principles. In the United States, regulatory approaches vary by state, and enforcement frequently lags behind technological advancement.
Starlink’s operations span more than 150 countries, subjecting the company to a complex array of data laws. This global footprint creates significant compliance challenges and means that enforcement often emerges only after public scrutiny or legal action. Many users may not realize how data policies have evolved until after their information has been used.
