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NASA says SLS Moon rocket is ‘go’ for launch debut
After rolling the vehicle to its Kenndy Space Center, Florida launch pad two days early for what is hoped to be the third and final time, NASA says that the first Space Launch System (SLS) Moon rocket is ready to take flight.
The Artemis I mission’s SLS reached Launch Complex 39B on August 17th after a 10-hour, 4-mile trip from KSC’s iconic Vehicle Assembly Building (VAB). NASA and its contractors spent the five subsequent days connecting the rocket to the pad and preparing both for flight – a process that will continue up until the moment the pad is cleared around a day or two prior to launch. On August 22nd, SLS and Orion program leaders completed a surprisingly clean Flight Readiness Review (FRR) for Artemis I, confirming that all related hardware, software, systems, and teams are (or will soon be) ready to launch.
Barring surprises, SLS remains on track to attempt its first launch and send an Orion spacecraft to the Moon no earlier than (NET) 8:33 am EDT (12:33 UTC) on Monday, August 29th.
Jim Free, Associate Administrator of NASA’s Exploration Systems Development division, reported that the SLS Artemis I FRR was completed with no exceptions, no additional actions required, and no dissenting opinions about the rocket’s readiness. Given just how rocky all aspects of SLS development have been, an almost perfectly clean review was not exactly expected, but it bodes well for a launch attempt during the first available window. Some work still needs to be completed, however, including at least one test that could not be completed during past test campaigns.
The rocket and pad’s behavior during two recent wet dress rehearsal (WDR) test campaigns in April and June also suggest that it could take NASA a few tries before SLS actually lifts off. There’s also a nonzero chance that minor to moderate problems could arise before liftoff, potentially requiring NASA to roll the rocket back to the VAB for a third time for repairs or longer-term troubleshooting. Thankfully, NASA officials were unusually candid in a post-FRR press conference and acknowledged many of those realities, noting that the first SLS launch could require multiple attempts.
Free even issued a statement on Twitter that almost directly acknowledged the possibility that Artemis I could end badly. While he avoided actually stating as much, the assistant administrator noted that “things may not go to plan” over the course of the mission. SLS will be the first rocket in history to attempt to send a payload to the Moon on its launch debut. Prior to attempting to enter orbit around the Moon and safely return to Earth, the Orion capsule will have only completed one suborbital test flight, and its propellant and propulsion section (service module) will have never flown.
With any luck, the rocket will make it through preflight operations without a major hitch and launch on the first try on August 29th. If not, NASA has backup opportunities on September 2nd and 5th. If all goes to plan, Artemis I will last approximately 42 days from liftoff to Orion capsule splashdown. The SLS rocket’s job will be complete around three hours after liftoff, leaving Orion to enter orbit around the Moon and eventually return to Earth.
Strangely, NASA is sending Orion to a lunar orbit different than the one the spacecraft will regularly visit with astronauts on operational missions, which are scheduled to begin with Artemis III as early as 2025. The Artemis I spacecraft also lacks a docking port and life support systems, and SLS will launch with an inert launch abort system (LAS), further weakening the test flight’s overall relevance for crewed missions.
No matter the outcome, NASA is poised to gather a massive amount of data about the performance of SLS and Orion over the course of Artemis I. In a best-case scenario, only minor tweaks will be required and Artemis II – a less complex crewed test flight including a free-return trip around the Moon – will remain on track to launch sometime in 2024.
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Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
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None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
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Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Tesla has one big financial question to answer for investors: Morgan Stanley
