SpaceX
DeepSpace: A critical juncture for SpaceX, Blue Origin, ULA, other players
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A high-pressure competition between all four major US launch providers – SpaceX, ULA, Blue Origin, and Orbital ATK (now NGIS) – is about to head into its most critical stage, a period of 60 days allotted for interested parties to submit their completed proposals. According to the US Air Force (USAF), the final request for proposals (RFP) could come as early as March 29th, giving the four aforementioned companies until May 28th to complete their proposals.
All things considered, the growing pressure and some of the USAF’s strategy behind the program – known as Launch Service Procurement (LSP) Phase 2 – has raised significant questions that remain largely unanswered and lead to a few mild bouts of strife or unhappiness from contract competitors. Most notably, Blue Origin – having just won a USAF development contract worth $500M – has repeatedly requested that the USAF and Department of Defense (DoD) delay the RFP and contract awards until 2021, according to Space News’ Sandra Erwin. Meanwhile, a lack of clarification from the USAF means that it’s unclear whether the strategy behind launch contract awards (LSP) will end up contradicting or undermining a partially connected development program known as Launch Service Agreements (LSA) that saw the USAF award ~$2B to three providers (excluding SpaceX) between 2018 and 2024.
Battle of the Acronyms: LSP vs. LSA
- Recently rebranded by the US military as the National Security Space Launch (NSSL) program, LSP Phase 1 and 2 and LSA are the latest major procurement initiatives begun under the Evolved Expendable Launch Vehicle (EELV) program, spun up in the 1990s to provide a firmer foundation for the commercial launch of military spacecraft after the 1986 Shuttle Challenger disaster pushed most satellites off of the platform.
- Phase 2 of the EELV program has been ongoing for several years and will culminate with the procurement of 25+ launch contracts (LSP) from two providers no earlier than 2020. The USAF’s Launch Service Agreements are also a major strategic feature of Phase 2, nominally seeing the military branch contribute major funding to assist in the development of three separate launch vehicles (New Glenn, Vulcan, and Omega) with the intention of ultimately certifying those rockets for EELV (now NSSL) launches.
- LSA also saw the USAF award several tens of millions to SpaceX, Blue Origin, and Aerojet Rocketdyne to develop capabilities centered around advanced, new rocket engines (BE-4, AR-1, and Raptor), but the latest phase of LSA is valued at least several times higher than its earlier engine-specific awards.
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- Oddly, the purpose of LSA was – at least on the cover – to effectively ensure that the Air Force had multiple (more than two) providers and thus preserve a healthy, competitive military launch market. A senior leader specifically stated that “the goal of [LSA] is to make sure [the US military has] a competitive industrial base.”
- Aside from an initial $181M awarded to Blue Origin, ULA, and Orbital ATK (now Northrop Grumman Innovation Systems, NGIS) in 2018 and 2019, the remaining funding – up to $320M for Blue Origin’s New Glenn, $610M for NGIS’ Omega, and $785M for ULA’s Vulcan – would be dispersed to each provider between 2020 and 2024.
- However, an odd and controversial bit of language behind the coming five-year launch services procurement (LSP) initiative would completely cut off funding to LSA awardees in the event that they fail to be awarded launches from the latest LSP.
- Additionally, the LSP awards are strictly meant – apparently very intentionally – to be distrubuted among two launch providers, despite a minimum at least four being able (SpaceX) or required (ULA, Blue, NGIS) to enter a bid.
- In other words, this guarantees that either one or two of the three LSA awardees would have the vast majority of their supposedly awarded development funding cut off after FY2020, four years early.
- Oddly, the purpose of LSA was – at least on the cover – to effectively ensure that the Air Force had multiple (more than two) providers and thus preserve a healthy, competitive military launch market. A senior leader specifically stated that “the goal of [LSA] is to make sure [the US military has] a competitive industrial base.”
- Despite continued protests from a number of stakeholders, the USAF has refused to budge from its decision to simultaneously A) create a duopoly, B) defeat the purpose of LSA awards, and C) mass-award ~25 launch contracts to two providers in 2020, anywhere from 12-24 months prior to the planned inaugural launches of all three LSA-funded rockets.
- Without cost-sharing development funds from the USAF and a chance of winning more than a handful of US military launch contracts between now and the late 2020s, it can be all but guaranteed that an LSA funding cutoff will either indefinitely pause or slow to a crawl a given provider’s development of their proposed launch vehicle.

A rocket and a hard place
- This sticky situation thus offers up a few potential ways that this badly-designed (or entirely dishonest) military launch development and procurement strategy will end up by the end of 2020. One way or another, the current strategy as it stands will end up providing two (or one, given that SpaceX will not receive LSA funding) companies with several years of development funding and at least five years of bountiful, guaranteed launch contracts.
- The four providers and two LSP slots available offer a set range of possible alternate realities, limited by political barriers that would, say, almost invariably prevent the USAF from severely harming ULA by cutting off the vast majority of the company’s only real source of income for 5+ years.
- ULA and SpaceX win: This maintains the status quo, wholly invalidating the point of using LSA funds to ensure “a competitive industrial base.” NGIS likely cancels/freezes all Omega development with no chance of competing in commercial markets. Blue Origin owner Jeff Bezos could significantly delay New Glenn’s readiness for military missions if he fails to invest an additional $500M in infrastructure. Likeliest result: a marginally competitive duopoly.
- ULA wins, SpaceX loses: Having just certified Falcon 9 – and nearly Falcon Heavy – for high-value military launches and awarded SpaceX a total of 10 launch contracts (9 yet to be completed), the USAF could effectively spit in SpaceX’s face and award ULA and Blue Origin or NGIS LSP’s 25+ launch contracts.
- It’s hard to exaggerate just how much of a slight this would be perceived as by SpaceX and its executives, CEO Elon Musk in particular. The USAF would be risking the creation of a major political enemy, one which has already demonstrated a willingness to take the federal government to court and win. The USAF/DoD would effectively be hedging their bets against an assumption that SpaceX’s nine present military launch contracts will sate the company and ensure that SpaceX indefinitely remains a certified EELV/NSSL provider.
- In this eventuality, either Blue Origin or NGIS would lose LSA funding and the prospect of almost any military launch contracts until the late 2020s. For NGIS, this would likely kill Omega.
- At the end of the day, it’s sadly conceivable that the USAF/DoD may end up awarding LSP contracts to ULA (effectively a politically-forced hand) and NGIS, the latter assuring Omega’s survival. The military would thus be assuming that the political fallout created with SpaceX and Blue Origin would not be enough to severely harm their relationships, while also assuming that their much stronger commercial prospects and independent funding sources would ensure that each provider remains certified and willing to compete for future NSSL/EELV launches.
Regardless of what happens, the contradictory ways the USAF/DoD have structured their LSA and LSP programs seems bizarrely intent on creating major headaches and potential problems where that could easily be avoided with extraordinarily simple changes, namely removing the inexplicable cap and allowing three or more companies to win some of the ~25 LSP launch contracts).
Mission Updates
- The second launch of Falcon Heavy – the rocket’s commercial debut – is still scheduled to occur as early as April 7th.
- After Falcon Heavy, Cargo Dragon’s CRS-17 resupply mission is firmly scheduled for April (April 25th), while the first dedicated Starlink launch is now NET May 2019.
Photo of the Week:

SpaceX CEO Elon Musk offered a glimpse of a 1650 Kelvin (2500ºF/1400ºC) test of Starship’s metallic heat shield, simulating mid-range temperatures such a shield’s windward side might experience during an orbital-velocity reentry.(c. Elon Musk/SpaceX)
Elon Musk
The Starship V3 static fire everyone was waiting for just happened
SpaceX completed a full duration of Starship V3 today clearing the path for Flight 12.
SpaceX is that much closer to launching their next-gen Starship after completing today’s full duration static fire out of Starbase, Texas. This marks a direct signal that Flight 12, the maiden voyage of Starship V3, is imminent. SpaceX confirmed the test on X, posting that the full duration firing was completed ahead of the vehicle’s next flight test.
The road to today started on March 16, when Booster 19 completed a shorter 10-engine static fire, also at the newly constructed Pad 2. That test ended early due to a ground systems issue but confirmed all installed Raptor 3 engines started cleanly. Booster 19 returned to the Mega Bay, received its remaining 23 engines for a full complement of 33, and rolled back out this week for the complete test campaign. Musk confirmed earlier this month that Flight 12 is now 4 to 6 weeks away.
Countdown: America is going back to the Moon and SpaceX holds the key to what comes after
The numbers behind the world’s most powerful rocket are genuinely hard to put in context. Each Raptor 3 engine produces roughly 280 tons of thrust, and with all 33 firing simultaneously from the super heavy booster, this generates approximately 9,240 tons of combined thrust, more than any rocket in history. For context, that’s enough thrust to lift the entire Empire State Building, and then some. V3 stands 408 feet tall and can carry over 100 tons to low Earth orbit in a fully reusable configuration. The V2 generation topped out at around 35 tons.
Historically, a successful full-duration static fire is the last major ground milestone before launch. SpaceX has followed this pattern with every Starship iteration since the program began in 2023. Musk has been direct about the ambition behind all of it. “I am highly confident that the V3 design will achieve full reusability,” he wrote on X earlier this year. Full reusability of both stages is the foundation of SpaceX’s plan to make regular flights to the Moon and Mars economically viable. Today’s test brings that goal one significant step closer.
Starship V3 delivers on two most critical promises of full reusability and in-orbit refueling. The reusability case is straightforward, and one we have seen with Falcon 9 wherein the rocket can fly again within a day rather than building a new one for every mission. It’s the only economic model that makes frequent lunar cargo runs viable. The in-orbit refueling piece is less obvious but equally essential. To reach the Moon with enough payload, Starship requires roughly ten dedicated tanker flights to fuel up a propellant depot in low Earth orbit before it can even begin its journey to the lunar surface. That capability has never been demonstrated at scale, and Flight 12 is the first step toward proving it works. As Teslarati reported, NASA’s Artemis II crew completed a historic lunar flyby earlier this month, the first humans to travel beyond low Earth orbit since 1972, but getting astronauts to actually land and eventually supply a permanent Moon base requires a cargo pipeline that only a fully reusable, refuelable Starship V3 can deliver at the volume and cost NASA’s plans demand.
Elon Musk
SpaceX is keeping the Space Station alive again this weekend
SpaceX’s Falcon 9 launches Northrop Grumman’s Cygnus NG-24 to the ISS with 11,000 pounds of cargo Saturday.
SpaceX is targeting April 11 for the launch of Northrop Grumman’s Cygnus XL cargo spacecraft to the International Space Station, carrying over 11,000 pounds of supplies, science hardware, and equipment for the Expedition 73 crew aboard. Liftoff is set for 7:41 a.m. ET from Space Launch Complex 40 at Cape Canaveral Space Force Station, with a backup window available April 12 at 7:18 a.m. ET.
The mission, officially designated NG-24 under NASA’s Commercial Resupply Services program, names its spacecraft the S.S. Steven R. Nagel in honor of the NASA astronaut who flew four Space Shuttle missions and logged over 723 hours in space before his death in 2014. Unlike SpaceX’s own Dragon capsule, which docks autonomously, Cygnus relies on NASA astronauts to capture it using a robotic arm before it is berthed to the space station’s module for unloading. When the mission wraps up around October, the Cygnus will depart loaded with station trash and burn up on reentry.
Countdown: America is going back to the Moon and SpaceX holds the key to what comes after
This is the second flight of the Cygnus XL configuration, which debuted on NG-23 in September 2025 and offers a roughly 20% increase in cargo capacity over the previous design. Northrop Grumman switched to Falcon 9 launches after its own Antares 230+ rocket was retired in 2023 following supply chain disruptions from the war in Ukraine.
The upcoming cargo includes a new module to advance quantum research, and an investigation studying blood stem cell production in microgravity with potential therapeutic applications on Earth.
The NG-24 mission is one piece of a much larger picture for SpaceX and the U.S. government. As Teslarati reported, SpaceX has become an indispensable launch provider for U.S. national security missions, picking up a $178.5 million Space Force contract in April 2026 to launch missile tracking satellites, while also holding roughly $4 billion in NASA contracts tied to the Artemis lunar program.
At a time when no other American rocket can match the Falcon 9’s combination of reliability, cost, and launch cadence, Saturday’s mission is a straightforward reminder of how much the U.S. government now depends on a single commercial provider to keep its astronauts supplied and its satellites flying.
Elon Musk
Elon Musk’s Terafab project locks up massive new partner
Terafab, first revealed by Musk in March, is a massive joint-venture semiconductor complex planned for the North Campus of Giga Texas in Austin.
Elon Musk’s Terafab project just locked up a massive new partner, just weeks after the new project was announced by Tesla, SpaceX, and xAI, the three companies that will be direct benefactors from it.
In a landmark announcement on April 7, Intel joined Elon Musk’s Terafab project as a key partner alongside Tesla, SpaceX, and xAI. The collaboration focuses on refactoring silicon fabrication technology to deliver ultra-high-performance chips at unprecedented scale.
Intel CEO Lip-Bu Tan hosted Musk at Intel facilities the prior weekend, underscoring the partnership’s momentum with a public handshake.
Intel is proud to join the Terafab project with @SpaceX, @xAI, and @Tesla to help refactor silicon fab technology.
Our ability to design, fabricate, and package ultra-high-performance chips at scale will help accelerate Terafab’s aim to produce 1 TW/year of compute to power… pic.twitter.com/2vUmXn0YhH
— Intel (@intel) April 7, 2026
Terafab, first revealed by Musk in March, is a massive joint-venture semiconductor complex planned for the North Campus of Giga Texas in Austin. Valued at $20–25 billion, it aims to consolidate the entire chip-making pipeline, design, fabrication, memory production, and advanced packaging in a single location. It should eliminate a majority of Tesla’s dependence on third-party chip fab companies.
The facility will manufacture two primary chip types: energy-efficient edge-inference processors optimized for Tesla’s Full Self-Driving (FSD) systems, Cybercab and Robotaxi, and Optimus humanoid robots, and high-power, radiation-hardened variants for SpaceX satellites and xAI’s orbital data centers.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
The project’s audacious goal is to produce 1 terawatt (TW) of annual compute capacity, roughly 50 times current global AI chip output.
Production is expected to begin modestly and scale rapidly, addressing Musk’s warning that chip supply could soon become the biggest constraint on Tesla, SpaceX, and xAI growth. By vertically integrating manufacturing tailored to their exact needs, Terafab eliminates supply-chain bottlenecks and accelerates iteration for AI training, inference at the edge, and space-based computing.
Intel’s participation is strategically vital. The company will contribute expertise in advanced process technology, high-volume fabrication, and packaging to help Terafab achieve its aggressive targets. For Intel, the deal strengthens its foundry business and positions it as a critical U.S. player in the AI hardware race.
For Musk’s ecosystem, it secures domestic, purpose-built silicon at a time when global capacity meets only a fraction of projected demand for hundreds of millions of robots and orbital AI infrastructure.
This is the latest chapter in Intel-Tesla ties. In November 2025, Musk publicly stated at Tesla’s shareholder meeting that partnering with Intel on AI5 chips was “worth having discussions,” amid concerns about TSMC and Samsung capacity.
Exploratory talks followed, with Intel eyeing custom-AI opportunities. The Terafab integration transforms those conversations into concrete collaboration.
The Intel-Terafab alliance carries broader implications. It bolsters U.S. semiconductor sovereignty, drives innovation in cost- and power-efficient AI silicon, and supports Musk’s vision of exponential progress in autonomy, robotics, and space.
As AI compute demand surges, this partnership could reshape the industry, delivering the silicon backbone for a new era of intelligent machines on Earth and beyond.






