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Elon Musk talks space, AI and more in Milken Institute interview

Credit: Milken Institute

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During an interview at a global conference this week, Elon Musk talked about a wide range of themes, from space travel and artificial intelligence (AI), to birth rates, and more.

The Milken Institute think tank is holding its annual global conference in Santa Monica, California, this week, and Musk was interviewed by the group’s Chairman, Michael Milken, on Monday. During the interview, Milken presented several of Musk’s past quotes as prompts, to which Musk could respond and sometimes expand on things he has discussed in the past.

Like many of his interviews, the topics were somewhat wide-ranging, though they included many of the things he has been outspoken about in the past: his thoughts on humanity, education, SpaceX and Starlink, the need to make humans multi-planetary, aliens, merit-based economy, AI, birth rates, and still more.

Elon Musk thinks we’ll have AI smarter than any one human by next year

The interview begins with Milken saying that the original title of the panel discussion was “How To Save The Human Race, and Other Light Topics.”

He then dives into an 11-year-old clip of Musk talking about the things he thought would have the biggest impact on humanity, to which the billionaire listed many of the things his companies cover today: the internet, sustainable energy including solar power and electric vehicles (EVs), and humanity becoming multi-planetary.

“Life cannot be about solving one thing or another. There have to be things that move your heart and make you excited to wake up in the morning,” Musk said, expanding on his prior quote. “And I think becoming a spacefaring civilization is one of those things.”

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“If you ask kids anywhere in the world, like ‘what are some of the most inspiring things,’ like a five-year-old, six-year-old anywhere in the world, they’re going to gonna say space exploration is one of those things,” Musk added.

Notably, Musk also said that SpaceX uses nearly no AI in its operations, while he also later clarified some of his reasoning for why he wants humanity to become multi-planetary:

“Well, if you don’t become a multi-planet civilization, then you’re then you’re simply waiting around until you die from a self-inflicted wound or from some natural disaster like the dinosaurs got hit by a meteorite or something,” Musk said.

“Eventually, something like that is going to happen if you wait around long enough, the sun will expand to Earth and will be incinerated so that for sure is gonna happen.”

Along with discussing themes like editing the human genome (which he doesn’t necessarily suggest humanity does), and concerns surrounding the world’s falling birth rate, Musk also discussed AI—a topic he’s familiar with through both his work at Tesla and his newest company, xAI.

Regarding AI, he reiterated themes he recently spoke about at the Breakthrough Prize awards on making these systems as truthful as possible, even at the risk of being politically incorrect.

“I’ve thought about AI safety for a very long time, and I think you want to have a maximum truth-seeking AI. This is very important,” Musk explained. “They should not be taught to lie. It should not be taught to say things that are not true. Even if those things are politically incorrect, it should still say those what it believes to be true.”

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He then compared the technology to the film 2001: A Space Odyssey, saying that (spoiler), part of the movie’s point was that HAL 9000 ended the astronauts’ lives because it had been forced to lie.

You can watch the full interview with Musk below.

What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Space finally faced the people living next to its next Terafab mega-project

SpaceX confirmed Terafab’s Grimes County site is locked in, with construction starting within months.

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SpaceX and Terafab representatives sat across from Grimes County residents for the first time on Wednesday, telling a packed Commissioners Court room that the $55 billion chip manufacturing project is now a done deal at the Gibbons Creek Reservoir site.

The meeting followed a $10 million check SpaceX sent the county earlier this week, satisfying a payment deadline built into the tax abatement agreement both sides signed in June. Elon Musk shared a post on X confirming the payment, and County Judge Joe Fauth told the San Antonio Express-News his office deposited the check after it beat its deadline.

Wednesday’s session, first reported by KBTX, moved the project from paperwork to construction. Terafab representative Riley Trennell told residents the JETI tax break agreements with Iola ISD and Anderson-Shiro CISD are signed and active, and that civil work and foundation prep are starting almost immediately. Renderings of the facility could be released within days, he said, with construction beginning within months.

Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry

Musk first announced Terafab in March as a joint venture between Tesla, SpaceX and xAI aimed at producing over a terawatt of AI compute annually, an amount that dwarfs the roughly 20 gigawatts the entire global chip industry produces today. Intel joined as a manufacturing partner in April. Musk has said the project needed its own day in the spotlight rather than being squeezed into an earnings call, and for months the Grimes County site remained unconfirmed even as reporting pointed there.

SpaceX attorney Buck Brannon used Wednesday’s meeting to note that the company’s abatement is roughly 78 percent, not the 100 percent some earlier reports suggested. In exchange, SpaceX will pay Grimes County a fixed $20 million a year for 35 years, a total of $710 million, which Brannon said exceeds the $14 million Tesla paid Travis County in 2025.

SpaceX also addressed environmental concerns that have followed the project since Musk’s Terafab partnership with Intel was announced. Representatives said Terafab will not raise electric bills for other ratepayers, will not deplete local water supplies and will not draw down the Navasota River. SpaceX confirmed it owns the Navasota River pumping station, which it plans to use to divert stormwater into the Gibbons Creek Reservoir, and said it will build its own natural gas plants to power the facility rather than pulling from the ERCOT grid.

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Grimes County commissioners also approved an addendum letting county employees use ten approved AI chatbots for work, including Grok.

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SpaceX has solved Starship’s biggest challenge, Elon Musk says

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Credit: SpaceX

Elon Musk has declared that SpaceX has effectively solved one of Starship’s most persistent engineering challenges: the reliability of its heat shield tiles.

During the company’s first-ever Earnings Call, the SpaceX CEO stated:

“I don’t want to jinx it or anything, but I think I would call the heat shield problem solved at this point. All indications from data and visual inspection is we have solved it. That doesn’t mean we won’t make improvements, but we do not see any technical obstacles to achieving rapid reusability at this point.”

Starship’s heat shield consists of roughly 18,000 hexagonal ceramic tiles covering the windward side of the upper stage. These tiles form the thermal protection system that shields the vehicle’s stainless-steel structure from the extreme heat of atmospheric reentry.

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During descent, atmospheric friction generates temperatures exceeding several thousand degrees Celsius and creates plasma flows capable of melting unprotected metal. The tiles absorb, radiate, and insulate against this energy, allowing the vehicle to survive and potentially fly again. Without a durable heat shield, full and rapid reusability, the cornerstone of Starship’s design for frequent launches, satellite deployments, and deep-space missions, would remain impossible.

The tiles have long been a source of difficulty. On earlier test flights, a significant number of tiles detached during ascent due to vibration, aerodynamic loads, and imperfect attachment methods using pins and adhesives. Gaps between tiles allowed hot plasma to infiltrate, causing secondary damage and hot spots on the underlying structure.

These issues echoed challenges faced by NASA’s Space Shuttle, whose ceramic tiles required extensive, labor-intensive inspections and replacements between missions, preventing rapid turnaround. SpaceX has iteratively improved materials, standardized tile shapes, refined attachment techniques, added secondary ablative layers, and tested sealing methods such as “crunch wrap” felt to close gaps.

Progress was visible across Flights 10–12, with steadily better tile retention, yet questions remained about whether the system could support the minimal-refurbishment goal of rapid reuse.

Flight 13 on July 24 provided the decisive evidence. Ship 40 flew a deliberately more demanding profile with higher dynamic pressure to stress the heat shield beyond typical operational loads. It successfully deployed 20 operational Starlink V3 satellites, the first such payload on a Starship mission, performed an in-space Raptor engine relight, and executed a controlled reentry.

Elon Musk sheds two new bits of detail on Starship after 13th test launch

Cameras on six of the satellites and onboard sensors captured extensive imagery and data of the shield throughout the flight. The ship then achieved its softest splashdown to date in the Indian Ocean, remaining intact and floating rather than breaking apart or exploding as on prior missions. This allowed drone inspections and continuous telemetry of the heat shield in near-real time.

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Post-flight analysis showed the majority of tiles remaining attached with only minor damage and limited plasma streaking at seams. Musk noted that the mission delivered “all the heat shield data we needed and then some.” Combined with visual inspections, these results underpinned his subsequent assessment that the core technical barriers to rapid reusability have been cleared. While refinements will continue, Flight 13 marked a pivotal step toward Starship’s operational future.

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SpaceX is coming for wireless giants with Starlink Mobile

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SpaceX COO Gwynne Shotwell outlined ambitious plans for Starlink Mobile during the company’s August 4 Earnings call, signaling a direct challenge to U.S. wireless giants like AT&T, T-Mobile, and Verizon.

Shotwell noted that the three companies generate roughly $600 billion in combined annual revenue. “I anticipate us to be able to acquire quite a few of their customers because I think our service will be better,” she said. “We will eliminate dead zones leveraging the satellites in orbit. It will be better during any natural disaster… I’m quite excited about Starlink Mobile.”

SpaceX intends to combine its satellite constellation with terrestrial infrastructure. The company has acquired about 65 MHz of spectrum from EchoStar and plans to deploy next-generation Starlink Mobile satellites in 2027, with upgraded service targeted for the end of that year.

Shotwell described the enhanced network, leveraging more satellites and spectrum, as potentially “100 times better” than the current direct-to-cell offering, which already supports basic texting and app-based voice/video in coverage gaps through partnerships. She also indicated plans for low-cost cellular base stations that could integrate with existing Starlink dishes, creating a hybrid system for broader capacity in urban, suburban, and rural areas.

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For the general public, Starlink Mobile promises significant advantages. Satellite connectivity can fill gaps where traditional cell towers fail, delivering service in remote locations, mountains, or during outages caused by storms, wildfires, or infrastructure damage—conditions in which ground networks often collapse.

Users could enjoy more consistent coverage without relying solely on dense tower builds, potentially at competitive prices as SpaceX scales. The hybrid approach aims to support full mobile services, including higher-speed data, while working with unmodified smartphones over time.

These developments revive long-standing but unfounded rumors of a Musk-developed “Tesla phone.” Speculative claims of a “Pi Phone” or similar device with built-in Starlink connectivity have circulated for years on social media, often featuring fabricated images and details. Elon Musk has repeatedly denied any such plans, stating Tesla has no intention of entering the smartphone market unless forced by extreme circumstances with app stores.

Tesla Phone rumors clarified by CEO Elon Musk

No official product, filings, or development announcements have ever materialized; the rumors remain hoaxes.

The announcement quickly pressured telecom stocks. Shares of AT&T, Verizon, and T-Mobile fell between roughly 2 and 4 percent in after-hours and premarket trading as investors weighed the competitive threat from a hybrid satellite-terrestrial network.

While execution challenges remain—spectrum deployment, infrastructure rollout, and regulatory hurdles—Shotwell’s remarks mark SpaceX’s clearest signal yet of entering the consumer mobile market as a full competitor.

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