News
Blue Origin scraps New Glenn recovery ship, finishes first ‘test tank’
After four years of halting work, Blue Origin has fully abandoned a transport ship it once intended to convert into a landing platform for its orbital-class New Glenn rocket.
Known as Stena Freighter at the time of sale, Blue Origin purchased the ship for an undisclosed sum – likely several million dollars – sometime in mid-2018. Aside from a flashy, December 2020 re-christening ceremony in which Blue Origin owner Jeff Bezos named the vessel Jacklyn after his late mother, the private aerospace company left the ship largely untouched in a Florida port. Small teams of workers would occasionally work on retrofitting the roll-on/roll-off cargo ship for a future life as a rocket recovery asset but made very little visible progress despite working on Jacklyn for several years.
Now, a few months after a Blue Origin spokesperson first acknowledged that the company was evaluating “different options” for New Glenn booster recovery, Jacklyn has left Florida’s Port of Pensacola for the Texan Port of Brownsville, where documents show that the ship will be scrapped.
According to an unconfirmed report, Blue Origin may ultimately use the same contractors as SpaceX to turn existing barges into ocean-going rocket-landing platforms. Blue Origin had hoped that a large, keeled ship would allow it to launch New Glenn and still recover its expensive booster even if seas were stormy downrange. However, after 107 successful SpaceX Falcon booster landings on flat-bottomed barges that are exceptionally sensitive to wave conditions, just a tiny fraction of launches have been delayed by the ocean. Further, SpaceX has only lost one booster to waves, and it solved that problem by developing a relatively cheap robot. With the benefit of hindsight, it’s not hard to see why Blue Origin changed its mind.
Much like SpaceX’s next-generation Starship rocket, Blue Origin began work on its semi-reusable New Glenn rocket in the early 2010s. Jeff Bezos publicly revealed New Glenn just a few weeks before CEO Elon Musk’s long-planned September 2016 reveal of SpaceX’s next rocket, then known as the Interplanetary Transport System (ITS). Both were massive, meant to be powered by huge new methane/oxygen-fueled engines, and designed from the ground up with some degree of reusability in mind.
But with fairly different designs and wildly different development philosophies, the paths of Blue Origin and SpaceX have only gotten further apart over the last six years. SpaceX thoroughly redesigned its next-generation rocket multiple times before throwing out a large portion of that prior work and settling on an unexpected stainless steel variant that CEO Elon Musk christened Starship in late 2018. Further differentiating the companies, SpaceX began work on steel prototypes almost immediately and successfully built and flew a scrappy pathfinder – powered by an early version of the same Raptor engine meant for Starship – less than a year later.
SpaceX then improvised a factory out of a series of tents and began churning out and testing dozens of more refined prototypes, seven of which would go on to perform flight tests between August 2020 and May 2021. SpaceX’s last test flight ended with a full-size steel Starship prototype successfully landing after launching to an altitude of 10 kilometers (~6.2 mi). Testing slowed considerably after that success but SpaceX appears to have begun ramping up again as it begins to test a Starship (S24) and Super Heavy booster prototype (B7) that have a shot at supporting the rocket’s first orbital launch attempt.
-
That orbital launch debut has been more or less continuously delayed for years and is about 20 months behind a tentative schedule Musk first sketched out (albeit for a drastically different rocket design) in 2016. Technically, the same is true for Blue Origin, which also said that it intended to debut New Glenn as early as 2020. However, while SpaceX can point to the instability of Starship’s design before 2019 as a fairly reasonable excuse for delays, the general characteristics of New Glenn’s design appear to be virtually unchanged despite its many delays. The smaller rocket – 7m (23 ft) wide and 98m (322 ft) tall to Starship’s 9m (30 ft) width and ~119m (~390 ft) height – will still use traditional aluminum alloys for most of its structures, will be powered by seven BE-4 engines, will land on several deployable legs, will have an expendable upper stage powered by two BE-3U engines, and will be topped with a large composite payload fairing.
Blue Origin canceled plans for a smaller interim fairing, abandoned plans to land the booster on a moving ship, and tweaked the booster’s landing legs and a few other attributes, but New Glenn is otherwise (visibly) unchanged from its 2016 reveal. Ultimately, that makes it even stranger that Blue Origin has done practically zero integrated testing of any major New Glenn components. Only in 2022 did the company finally complete and test a New Glenn payload fairing. Blue may have also built and tested a partial booster interstage, which the New Glenn upper stage will attach and deploy from.
But the true star of the show, at long last, is an apparent full-scale prototype of New Glenn’s upper stage. At minimum, Blue Origin’s first ‘test tank’ (using SpaceX parlance) should allow the company to finally verify the performance of New Glenn’s aluminum tank barrel sections and domes under cryogenic (ultra-cold) conditions. It’s unclear how (or if) Blue Origin intends to complete integrated static-fire testing of New Glenn’s upper stage before the rocket’s first launch, but it’s possible that the tank it finally delivered was designed to support testing with and without engines.
Nonetheless, Blue Origin hasn’t specified what it actually plans to do with its first New Glenn test tank and it’s even less clear why it has taken the company so long to complete one. While difficult, the methods Blue Origin is using to build New Glenn’s primary structures are about as standard as they get for modern rockets. Blue Origin itself even uses the same tech to build its smaller New Shepard rockets. So does SpaceX, ULA, Boeing, Arianespace, and virtually every other manufacturer of medium-to-large rockets, including NASA’s Space Launch System (SLS) core stage, which is wider than New Glenn.
The results of those challenges (managerial, technical, or otherwise) are clear: Blue Origin is nowhere close to debuting its next-generation rocket while competitors like Arianespace and ULA are tracking towards H1 2023 debuts of their Ariane 6 and Vulcan rockets. SpaceX, who is pursuing full reusability and really only settled on the design of its larger rocket in 2019, could even be ready to attempt an orbital-class launch with Starship before the end of 2022.
Still, the long-awaited beginning of hardware-rich New Glenn development appears to have finally arrived, and it’s possible that Blue Origin’s first orbital-class rocket could finally start picking up momentum towards its launch debut.
-
Investor's Corner
SpaceX and Nvidia team up on Musk’s orbital AI bet
SpaceX revealed a new Nvidia satellite partnership, then Musk pledged an exclusive Nvidia hardware commitment.
SpaceX and Nvidia are now working together on the hardware that will power Musk’s orbital data center ambitions. SpaceX announced on X on Tuesday that it is partnering with Nvidia to design the compute payload for Starmind AI1, the first satellite in a planned constellation built to run AI workloads directly in orbit. Each Starmind satellite will carry Nvidia’s Rubin GPUs and Vera CPUs, according to the post, which included renderings of the payload design.
The announcement landed hours before SpaceX’s first earnings call as a public company, where Musk went further, saying the company has committed to building its AI infrastructure exclusively on Nvidia hardware. “We think the Vera Rubin architecture is the best architecture. We think it’s the best AI computer, and we greatly value our close cooperation and partnership on many levels with Nvidia,” Musk told investors on the call,. “So we’re exclusive to Nvidia.”
Musk said SpaceX plans to deploy Nvidia’s Vera Rubin NVL72 rackscale system, codenamed Kyber, both on the ground and in space. He set a target of 2 gigawatts of compute capacity online by the end of this year, scaling to roughly 10 gigawatts by the end of 2027.
SpaceX’s newest Starmind will make earth data centers obsolete
Starmind has been in development since Musk confirmed the name in June, following an xAI trademark filing that tipped off the project before SpaceX made it official. The idea is massive in scope and instead of moving data down to ground based servers, satellites equipped with onboard processors and large solar arrays would compute AI workloads in orbit and beam results back to Earth. SpaceX has already filed with the FCC for a constellation of up to one million satellites to support the effort, citing constant solar power and the absence of zoning restrictions as advantages over terrestrial data centers.
The Nvidia exclusivity marks a shift in tone from just two weeks ago, when Musk was busy knocking down a report that SpaceX had ordered $52 billion worth of Nvidia GPUs through Foxconn, calling it fake news at the time. The dollar figure in that rumor may have been wrong, but the underlying direction seems correct. SpaceX’s AI division already leases Colossus compute capacity to Anthropic and Google, and Tuesday’s earnings report showed AI revenue climbing sharply as those deals ramp up.
Nvidia shares rose roughly 3% in Tuesday trading on the news, while SpaceX stock climbed nearly 9% during the day before giving back gains after hours as investors digested the earnings report’s capital spending figures.
SpaceX (NASDAQ: SPCX) reported a beat in revenues and EBITDA in its first earnings call report while also minimizing losses as its business continues to gain momentum.
After its IPO in July, SpaceX saw some tough losses on Wall Street due to a major selloff after a delay in its 13th Starship test flight. The ship launched later that week and completed what was arguably the most successful IFT operation in the Starship program’s history.
Nevertheless, the company is continuing on and reported some encouraging financials while also promoting what appears to be a robust outlook moving forward in its Space, AI, and Connectivity divisions.
SpaceX to report first-ever earnings today: here’s what to expect
Earnings Results
- Revenues: $7.8 billion reported vs. $6.7 billion expected
- Adjusted EBITDA: $3.5 billion vs. $2 billion expected
- Net loss of $541 million, an improvement of $467 million from net loss of $1.0 billion
Additionally, CFO Bret Johnsen had these comments:
“2026 has been a momentous year so far, and the second quarter demonstrated the true power of SpaceX. Revenue growth accelerated across all our business segments and we delivered strong operating leverage, with significant margin expansion led by our new AI compute agreements. Our unparalleled leadership in launch, Starlink subscriber growth, new enterprise and government partnerships, and best-in-class AI infrastructure underscore our ability to drive meaningful scale and deliver attractive returns. As a newly public company, we are delighted to welcome our broad base of shareholders and bondholders. We ended the second quarter with $100 billion of cash, cash equivalents, and marketable securities, and $47.5 billion in backlog. This financial strength gives us substantial capacity to invest in Starship, Starlink Broadband and Mobile satellites, and our AI platform, while maintaining a disciplined long-term capital allocation framework.”
Space Business Highlights
SpaceX shared some of its biggest Space Business Highlights for Q2:
- Space revenues grew 55% sequentially and 29% year-over-year to $962 million, driven by a higher number of large customer launches and a favorable customer shift compared to the prior year
- Total costs and expenses for the Space segment were up by $389 million year-over-year, as we continued to accelerate R&D investments in our Starship program, which we believe will reduce the cost to orbit by 99% or more relative to the historical average, and unlock significant revenue potential across all business segments
- Leading launch provider for the world with 78 launches and 1,041 metric tons of mass to orbit deployed over the six months ended June 30, 2026, primarily allocated to Connectivity for the deployment of our Starlink constellation
- Starship V3 development continued to advance towards full and rapid reusability:
- Completed Starship V3’s first suborbital mission in May, Flight 12, which achieved a successful lift off from our new Starbase pad, a precision landing of Starship’s upper stage, and deployment of modified V2 Starlink satellites
- Subsequent to the second quarter, completed Starship Flight 13 in July, which achieved all flight objectives including deploying 20 production V3 satellites, demonstrating in-space relight of a Raptor engine, and executing the softest ever splashdown of Starship, providing critical views of an intact heatshield
SpaceX will report its earnings today at 4:30 P.M. EDT.
Elon Musk issued a second pointed warning to SpaceX short sellers on Tuesday, just hours before the company was set to release its first quarterly earnings as a publicly traded firm. Responding to a report highlighting elevated short interest, Musk wrote on X: “I try to warn them, but they just double down …”
The comment came as data from S3 Partners showed roughly 95 percent of available SPCX shares to borrow were on loan, translating to about 34 percent short interest as a percentage of the float. The stock has traded under pressure since its record-breaking IPO in June 2026, declining significantly from early peaks.
I try to warn them, but they just double down … 🤷♂️
— Elon Musk (@elonmusk) August 4, 2026
This marks the second such message from Musk in under three weeks.
On July 17, amid post-IPO volatility, he stated: “The survival probability of firms who maintain a significant short position in SpaceX over time is very low.” At that time, SPCX had fallen roughly 30 percent from its peak above a $2.6 trillion valuation, with short sellers reportedly realizing gains of about $8.7 billion.
Musk’s warning aligned with optimistic analyses projecting that Starship-driven cost reductions could enable a multi-trillion-dollar space economy through applications such as orbital solar power, asteroid mining, data centers, and Mars-related projects, positioning SpaceX as critical infrastructure.
SpaceX is scheduled to report second-quarter results after the market close later today, followed by a webcast. Analysts anticipate revenue near $6.9 billion, reflecting growth in Starlink, launch services, and AI-related segments. The earnings release precedes a major lockup expiration on August 6 that could free hundreds of millions of insider shares.
Musk has a long track record of confronting short sellers, particularly regarding Tesla, where he has argued that persistent bearish positions underestimate transformative technologies. Critics view his optimism as overly ambitious given near-term stock fluctuations, while supporters see temporary dips as opportunities in a longer-term expansion of the space economy.
As SpaceX opens its books to public scrutiny for the first time, the high short interest and Musk’s repeated cautions set the stage for heightened market attention on the results and management’s commentary.
SpaceX and Nvidia team up on Musk’s orbital AI bet
SpaceX reports beat in first earnings while minimizing losses
