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Elon Musk’s OpenAI to battle in Dota 2 World Championship video game tournament
OpenAI, a research lab co-founded by Elon Musk, has developed a new breed of AI agents that are capable of playing Dota 2, a complex strategy game, in 5-on-5 multiplayer matches. OpenAI’s new bots have so far been able to beat amateur and semi-professional teams. With this accomplished, the research lab is now looking to bring its bots to The International, a prolific Dota 2 tournament, this coming August.
The new bots go by the name of OpenAI Five, a reference to the number of neural networks working together in the team. To train the neural networks, the AI has been playing roughly 180 years worth of gameplay every day using reinforcement learning. This enables the AI to learn the intricacies of the game, considering that it is far more complicated than board games like Chess and Go. Dota 2, for example, involves hiding data from players, preventing the system from perceiving the entire playing field at a given time.
The hardware employed by the research lab to train OpenAI Five is impressive. The five neural networks train through a scaled-up version of Proximal Policy Optimization running on 256 GPUs and 128,000 CPU cores. The same setup was adopted in a much smaller scale last year when OpenAI rolled out an artificial intelligence system that proved capable of beating the best Dota 2 players in the world in 1-on-1 matches.
Currently, however, OpenAI Five can only play the game with several restrictions. For one, the AI system can only use five of the 115 heroes available in the game. Skills such as Invisibility, Summons, and the placement of wards are also disabled. The research lab, however, hopes that through time, the neural networks would be able to play the game without any restrictions at all.
As could be seen in a recent video shared by the research lab, OpenAI Five is actually being received well by the Dota 2 community. Professional Dota 2 player Blitz, for one, noted that the bots are adopting strategies that are incredibly effective. In a match against OpenAI Five, Blitz, together with four employees of the research lab, put up a fight before getting dominated by the articificial intelligence. In a statement after the game, Blitz sheepishly stated that the bots capitalized on every small error he made during the match.
“I think the team fight aspect of the bot(s) was excellent. It didn’t mess up. When it came to coordination, it was some of the best pure team fighting because it felt like I was getting hammered every single time I made a mistake. I feel like normal humans don’t do that,” the professional Dota 2 player said.
So what’s the secret behind OpenAI Five? In a statement to The Verge, OpenAI CTO Greg Brockman noted that unlike human players, the bots have “no ego” when they play the game. The teamwork aspect of the bots was also trained by allowing them to work individually at first, then encouraging them to work together.
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“The bots are totally willing to sacrifice a lane or abandon a hero for the greater good. For fun, we had a human drop in to replace one of the bots. We hadn’t trained them to do anything special, but he said he just felt so well-supported. Anything he wanted, the bots got him,” Brockman said.
Ultimately, Brockman is encouraged by OpenAI Five’s development so far. The research, after all, is motivated by the idea that if AI systems can be trained to perform complex tasks such as learning a game as intricate as Dota 2, it could eventually be used to solve equally complex real-world challenges. Some examples of real-world applications could be designing and managing a city’s transport structure, or the logistics of a massive business.
“This an exciting milestone, and it’s really because it’s about transitioning to real-life applications. If you’ve got a simulation of a problem and you can run it large enough scale, there’s no barrier to what you can do with this,” he said.
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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.
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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.
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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.
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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
