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Advancement in nuclear fusion tech continues transition to clean energy future
The development of unlimited, carbon-neutral, and safe energy through nuclear fusion is expanding around the world, and scientists at the Atomic Energy Authority in the United Kingdom (AEA) have recently cleared one more key hurdle to making it a commercial reality: exhausting gas that’s hotter than the Sun. The hot plasma created during fusion power generation needs to cool down as it’s being used, but at its extreme temperatures, there aren’t any materials available to withstand the heat. Now, that problem appears to have been solved.
The AEA team’s answer to the heat issue is a “sacrificial wall” design which will require replacement every few years. Plasma will be moved down a path within its fusion generator’s holding device to cool it slightly before coming into contact with a specially designed wall for the remainder of the cooling process. However, even at a lower temperature, the heat will degrade the wall’s integrity over time and need to be changed. With the first nuclear fusion reactor set to turn on in seven years, AEA’s fusion exhaust system may be one of the developments that keeps it on schedule.
It’s said that imitation is the sincerest form of flattery, and recent fusion energy developments show that sentiment’s considerations don’t remain within the bounds of Earth. At about 90 million miles away, our Sun is essentially a fusion reactor in the sky, its large size creating enough gravity to force atoms together at its core and release massive amounts of energy. Artificially reproducing the conditions needed for this kind of generation is tough, but the attempt has been going on since the 1960s. The AEA is representative of one agency in a global endeavor.
The most advanced nuclear fusion project today is ITER, the International Nuclear Fusion Research experimental reactor in southern France, which hosts scientists from 35 countries dedicated to achieving the first ever positive fusion energy production. Their device is called a “tokamak”, and its structure is something like a flattened donut (torus) encapsulated by rings of powerful magnetic coils. The magnetic fields generated by the coils both suspend the plasma created by extreme heat and squeeze the plasma into a small space to create the fusion reactions. ITER is scheduled to turn its reactor on in 2025.
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- A visualization of the ITER tokamak in operation.| Credit: ITER.org/Jamison Daniel, Oak Ridge Leadership Computing Facility
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- A computer-animated visualization of the ITER tokamak in operation. | Credit: ITER.org
Creating fusion in a laboratory involves two primary parts: 1) creating plasma, a soup of electrons and nuclei released from their atomic structures due to extremely high temperatures; and 2) merging the nuclei of two different types of atoms, generally different forms of hydrogen. The heat in a tokamak is generated from both the magnetic field movement and external heating devices, and the nuclei merge is achieved by squeezing the plasma using those same magnetic fields into a constricted area to encourage collisions. Essentially, the high heat excites the atomic particles, speeding their motion, and their energetic movements within the magnetically confined area significantly increases the likelihood the nuclei will crash and fuse together. When this fusion occurs, a massive amount of energy is released, the object of desire for all involved in this field of research.
The amount of heat needed to convince atoms to release their electrons and form plasma is in the range of millions of degrees Celsius, the core of the Sun itself being 15 million degrees. Without high gravity to aid with squeezing plasma, as in the Sun’s case at 27 times the gravity of Earth, reactors on our planet need to heat well beyond the Sun’s temperature to ensure the atomic particles in the plasma collide and fuse. ITER’s tokamak heats to 100 million degrees Celsius.
All of this heating and magnetic control requires its own energy input, and this is where the current state of fusion energy development is focused. The ratio of energy used and energy produced is called “Q”, the desired amount aimed for by scientists in the field being 10:1. When ten times the energy is produced by nuclear fusion than used to produce it, it will have advanced to a level ready for further development as an alternative power source, or so goes the thinking. ITER’s specific goal is to produce 500 MW of fusion power from 50 MW of heating power.
Once energy is released from the fusion process, it can then be captured to create steam to power generators currently using other power sources such as coal and natural gas. This is another benefit purported benefit of fusion power; it can plug directly into existing power grids, minimizing any disruptions or requirements for new equipment. Combined with the abundant availability of hydrogen and the lack of greenhouses gases or radioactive waste, there are high hopes for fusion’s future as an all-in-one energy solution.
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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
