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Welcome to The Prompt by Kuro House, your daily update on the most impactful moves in AI and tech. Today, we’re diving into some fascinating developments—from AI agent identity to space-based data centers, and from smarter IRS audits to efficiency in AI computing. Let’s get started.

First up, Okta’s CEO Todd McKinnon is making a bold bet on AI agent identity, a new frontier in enterprise security. As reported by The Verge, Okta is shifting focus to managing not just human identities but AI agents themselves within corporations. These agents act as hybrid entities—part person, part system—and Okta aims to provide a centralized identity platform for them. They’re even introducing a kill switch to immediately revoke agent access if something goes wrong, addressing risks like rogue AI behavior. Todd emphasizes that while the SaaSpocalypse worries many, Okta sees the total software market expanding with this new agentic layer potentially becoming the biggest category in cybersecurity.

Next, Starcloud just raised $170 million in Series A funding to build the first cost-competitive data centers in space. TechCrunch reports that Starcloud’s valuation now stands at $1.1 billion, making it a fast-rising unicorn in the space compute sector. They launched their first satellite with an Nvidia H100 GPU in late 2025 and plan to deploy Starcloud 2 later this year, featuring multiple GPUs and a bitcoin mining computer. Their ambitious Starcloud 3 spacecraft will launch on SpaceX’s Starship and aims to achieve power costs competitive with Earth-based data centers—if Starship’s frequent flights begin by 2028 or 2029. Starcloud is pioneering running AI training and inference workloads in orbit, navigating challenges like cooling, power, and synchronization across satellites.

On the ground, ScaleOps is tackling a critical problem in AI infrastructure: wasted compute resources driving up costs. According to TechCrunch, ScaleOps raised $130 million in a Series C round at an $800 million valuation to build software that autonomously manages cloud resources in real time. Their platform reduces cloud and AI infrastructure costs by as much as 80% by reallocating GPUs, memory, storage, and networking dynamically. Unlike static Kubernetes configurations, ScaleOps’ context-aware system adapts to fast-changing AI workloads without manual tuning. Clients include Adobe, Salesforce, and DocuSign, and the company plans to expand its autonomous infrastructure offerings with this new funding.

Meanwhile, the IRS is experimenting with AI-powered audits using Palantir’s technology to modernize its notoriously fragmented case selection process. WIRED reveals the IRS paid Palantir $1.8 million last year for a pilot tool called SNAP that helps flag high-value tax audit targets. SNAP analyzes unstructured data from decades-old legacy systems to identify potential fraud or underreported income, focusing on areas like disaster relief claims and clean energy credits. Though still in pilot, this effort aims to improve efficiency amid shrinking IRS resources and increasing complexity in tax filings. The IRS hopes this AI-driven approach will reduce duplication, better target investigations, and modernize its audit capabilities.

Finally, the AI music scene is buzzing with new models, legal battles, and ethical debates shaping the future of creativity. The Verge highlights how AI is transforming everything from sample sourcing to playlist curation in the music industry. But questions remain about the artistic value of AI-generated music and the impact on working musicians facing an influx of automated content. Legal challenges are mounting as artists and labels navigate copyright issues around AI-created works, making this a space to watch closely.

So, what ties these stories together? It’s clear that AI’s integration into identity, infrastructure, government, and creative industries is accelerating rapidly, with both huge opportunities and complex challenges ahead. From space-based data centers to agentic AI workers, the future is unfolding in ways that demand new frameworks and vigilant innovation. Thanks for tuning in to The Prompt by Kuro House. Stay curious, and we’ll catch you tomorrow.