Luke Vargas

Elon Musk reshapes his tech empire as SpaceX acquires XAI.

Plus, the Epstein scandal sends shockwaves across the Atlantic.

And the House prepares to vote as soon as today to end a partial government shutdown.

We have a one-vote margin now, so what could go wrong?

That's fine.

It's Tuesday, February 3rd.

I'm Luke Vargas for The Wall Street Journal, and here is the AM edition of What's News, the top headlines and business stories moving your world today.

We begin with a major tie-up as SpaceX is buying XAI, a deal that brings together Elon Musk's well-established rocket business and his AI startup to form a $1.25 trillion company.

The merger was confirmed in a memo yesterday by Musk, saying the deal will, quote, form the most ambitious vertically integrated innovation engine on and off Earth.

But as journal tech reporter Berber Gin explains, the move was unexpected, as industry observers had anticipated that XAI would merge with Tesla instead.

Berber added that he'll be looking to see how investors like this combination and whether they buy into Musk's long-term vision for the new company.

previously invested $2 billion into XAI.

And last week, Tesla committed to invest the same amount in the company.

Republican House Speaker Mike Johnson says he has the votes to end a partial government shutdown as soon as today.

That follows a push by President Trump to pressure a handful of House Republicans to drop their opposition to the bill unless it included voter ID legislation.

Johnson has a thin majority in the House and will need near-unanimous support from Republicans if he hopes to pass the measure.

Across the aisle, Democratic Minority Leader Hakeem Jeffrey said that while some in his party may back an eventual spending package, they're united in opposing an earlier procedural vote.

One of those demands, that federal officers wear body cams, is being partially addressed by the administration.

Homeland Security Secretary Kristi Noem says that officers in Minneapolis will receive body cameras effective immediately, an effort that would expand to DHS law enforcement nationally, quote, as funding becomes available.

Speaking in the Oval Office, President Trump told reporters that the move was all Noem's.