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SpaceX appeals FCC decision to reverse $885.5M Starlink subsidies SpaceX appeals FCC decision to reverse $885.5M Starlink subsidies

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SpaceX appeals FCC decision to reverse $885.5M Starlink subsidies

Credit: Starlink

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SpaceX appealed the Federal Communications Commission’s reversal of Starlink’s infrastructure award of $885.5 million. The appeal was filed electronically and hand-delivered to FCC Secretary Marlene Dortch.

In the executive summary, it said that the decision to exclude Starlink from the Rural Digital Opportunity Fund (RDOF) was flawed in both matters of law and policy. According to the document,

“It fails legally because it contradicts the record—including SpaceX’s and Starlink’s proven capabilities—it contradicts the Commission’s stated rules for the program, and it rests on unsupported conjecture and outside-the-record information apparently cherry-picked from somewhere on the Internet.”

“Worse, it fails the RDOF’s very purpose: closing the digital divide. As the last few years have highlighted, it is critical to connect all Americans as quickly as possible, whether to enable kids to do their homework, empower parents to work from home, help doctors provide telehealth services, or assist first responders with emergency situations. The Bureau’s decision undermines this goal, leaving the very Americans that RDOF was supposed to connect stranded indefinitely on the wrong side of the digital divide.”

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“This decision is so broken that it is hard not to see it as an improper attempt to undo the Commission’s earlier decision, made under the previous Administration, to permit satellite broadband service providers to participate in the RDOF program. The decision appears to have been rendered in service to a clear bias towards fiber, rather than a merits-based decision to actually connect unserved Americans. Commissioner Starks, in adopting the RDOF Order, correctly foresaw that “next-generation satellite broadband holds tremendous technological promise for addressing the digital divide and is led by strong American companies with a lengthy record of success.”

“Rightly, he directed the Bureau to “evaluate those applications on their own merits.” But the Bureau inexplicably ignored this direction and instead applied far different standards to SpaceX’s application precisely because SpaceX proposes to use satellites.”

SpaceX also said that the Bureau’s decision to improperly misuse data outside the record to penalize it alone for its system’s current speeds was one of the many errors. Another error was that the Bureau ignored SpaceX’s “robust record evidence” of its proven ability to quickly expand and upgrade its network.

The Bureau failed to account for SpaceX’s transparent all-in pricing against the “opaque pricing—which disguises the true cost to consumers—common in the industry,” SpaceX said.

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“The Bureau’s decision holds SpaceX to standards not adopted by the Commission for the RDOF program. Indeed, these are standards that no bidder could meet today. Changing the rules to undo a prior policy is grossly unfair after SpaceX has invested thousands of employee hours and millions of dollars preparing to meet its RDOF obligations on the reasonable assumption that the Bureau would apply the Commission’s rules in an even-handed manner.”

“Far more troubling, as no RDOF applicant offering fiber even bid in the majority of the territories SpaceX committed to serve through RDOF, the Bureau’s decision leaves the Commission with no plan to connect many unconnected Americans, undermining the very purpose of this program. The decision should not be allowed to stand, leaving the people in these rural areas across our country behind yet again.”

Last month, FCC Commissioner, Brenden Carr, called out the agency for denying Starlink’s award. Along with a statement posted to Twitter, he tweeted that it would leave rural Americans “waiting on the wrong side of the digital divide.”

Your feedback is welcome. If you have any comments, or concerns, or see a typo, you can email me at johnna@teslarati.com. You can also reach me on Twitter at @JohnnaCrider1.

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Johnna Crider is a Baton Rouge writer covering Tesla, Elon Musk, EVs, and clean energy & supports Tesla's mission. Johnna also interviewed Elon Musk and you can listen here

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SpaceX adjusts Starship Flight 13 test launch target date once again

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Credit: SpaceX

SpaceX has updated its target for the thirteenth integrated flight test of Starship, aiming for as early as Thursday, July 23. The 90-minute launch window opens at 5:45 p.m. CT from the company’s Starbase facility in South Texas.

The target flight was initially rescheduled for today, but SpaceX pushed it back again.

This latest adjustment follows an aborted attempt earlier in the week and reflects the iterative, rapid-development approach that has defined the Starship program. With the vehicle already stacked and ground teams making final preparations, the mission represents another step toward proving the full reusability of the world’s most powerful rocket system.

The original launch attempt on July 16 was scrubbed at T-0 when several Raptor engines on the Super Heavy booster failed to ignite properly. The automatic abort system triggered just as the engines began their startup sequence, preventing liftoff.

SpaceX CEO Elon Musk confirmed that some engines did not start as expected, prompting the decision to replace two Raptors on Booster 20 to ensure reliability. The issue occurred despite a successful full-duration static fire earlier, highlighting the complexities of coordinating 33 engines under flight conditions.

This cautious approach underscores SpaceX’s commitment to safety amid an aggressive test cadence.

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SpaceX comes with a slew of changes for Starship Flight 13

Flight 13 builds directly on the lessons from Flight 12 in May 2026. The Super Heavy booster’s primary goals include a successful liftoff, ascent, stage separation, boostback burn, and controlled splashdown in the Gulf of America.

Hardware and software modifications address the off-nominal flip and boostback burn problems from the prior flight, where propellant slosh and engine relight issues led to an uncontrolled impact.

For the Starship upper stage, objectives include deploying 20 operational Starlink V3 satellites, the first real payload of this type, performing a single Raptor engine relight in space, and executing a controlled entry, descent, and splashdown in the Indian Ocean. Propulsion upgrades aim to improve engine-out capability after one vacuum Raptor was lost on Flight 12.

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Additional test elements focus on heat shield performance. Six satellites carry cameras to image the tiles during flight, while white-painted tiles and upgraded attachments on flaps and the aft skirt will gather data for future reusability.

The FAA completed its mishap investigation into Flight 12 earlier this month, clearing the regulatory path.

This suborbital mission, the second with V3 vehicles, advances Starship toward operational missions, including potential crewed flights and support for NASA’s Artemis program. Success would mark significant progress in rapid reusability and satellite deployment from the massive system.

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Elon Musk debunks $52 billion SpaceX-NVIDIA GPU deal

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Credit: SpaceX

Elon Musk dismissed reports claiming SpaceX had placed a massive order for NVIDIA GPUs worth $52 billion. The denial came hours after Taiwanese media, citing unnamed industry sources, reported that SpaceX planned to acquire approximately 13,000 AI server racks, equating to roughly 1 million GB300 GPUs, from Foxconn.

Each rack was estimated at around $4 million, with deliveries potentially starting in late 2025.

The story suggested this would mark SpaceX’s first major foray into Foxconn-manufactured NVIDIA hardware, breaking from suppliers like Supermicro and Dell. Musk responded bluntly on X:

Despite the denial, the rumored scale aligns with SpaceX’s explosive growth in AI infrastructure. NVIDIA’s GB300 (successor to the GB200 NVL) racks deliver unprecedented performance for large-scale training and inference. A $52 billion commitment would dwarf most corporate AI budgets and provide the compute muscle needed for frontier models.

SpaceX already operates gigawatt-scale terrestrial clusters like Colossus in Memphis, Tennessee, and has monetized them aggressively through leasing deals.

SpaceX’s newest Starmind will make earth data centers obsolete

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Major customers include Anthropic (paying ~$1.25 billion monthly for 220,000+ GPUs), Google (~$920 million monthly for 110,000 GPUs), and Reflection AI. These arrangements are projected to generate tens of billions in annual revenue, far outpacing traditional SpaceX businesses.

Such an investment would fuel internal AI efforts, particularly Grok models under the integrated SpaceXAI division, while supporting ambitious orbital data center plans. SpaceX envisions launching thousands of AI-optimized satellites powered by solar energy and cooled in space, bypassing terrestrial power and land constraints.

This “Starmind” constellation could position the company as a leader in space-based computing.

SpaceX as an Emerging AI Powerhouse

Once primarily known for reusable rockets and Starlink satellite internet, SpaceX has transformed into a multifaceted AI player.

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The 2026 acquisition of xAI integrated Grok development directly into the company. Starlink’s low-latency global network complements massive compute clusters, enabling efficient data flow for training and serving AI models.

Musk has long argued that AI scaling demands solutions beyond Earth, citing things like real estate and electricity limits on the ground.

While the Foxconn deal may not be in the cards, SpaceX’s trajectory is continuing on the path of blending aerospace engineering with hyperscale AI to dominate both launches and intelligence infrastructure.

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Elon Musk sheds details on Tesla FSD’s upcoming improvements

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Credit: Tesla

Elon Musk shed more details on the upcoming improvements to Tesla’s Full Self-Driving suite, specifically one that the CEO mentioned last week, which should help owners see fewer interventions.

Last week, Musk hinted that one major improvement that Tesla planned to roll out to Full Self-Driving users was the car’s ability “to remember your specific interventions and match each person’s individual preferences.”

Elon Musk says your Tesla will start to learn your individual preferences

This small bit of detail was linked to a post from Tesla community member Whole Mars, who said that FSD’s tendency to exit the carpool lane, a feature that owners can turn on but at times the car will disregard.

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It sounds like, based on Musk’s two responses since that original post, it is safe to say the things FSD will start to remember are wide-ranging. However, it seems the biggest differences will be noticed with parking performance, which Musk continues to mention.

Highway Lane Preferences

The initial post Musk mentioned, with these new remembered preferences soon to arrive for Tesla owners everywhere, was the Carpool/Express Lane.

Tesla has a setting in the FSD menu that lets drivers enable HOV Lane travel. However, the car won’t always stay in that suggested or preferred lane.

Some owners have also complained of left lane camping, an illegal maneuver in at least some states. Cruising in the passing lane has resulted in tickets for some, as it is illegal in over 30 states in the U.S.

Tesla did not confirm if these preferences would also be included in new FSD behaviors, but it would certainly help move the company toward fewer interventions.

Parking Preferences

This seems to be the real focus of the entire operation, as Musk stated several weeks ago that parking was overwhelmingly the most frequent reason for interventions.

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The major issue with parking is not necessarily the parking “performance,” as FSD is generally good at parking. It definitely has its issues; we’ve recorded plenty of them, including this one as recent as last week:

However, the changes coming are more about preferences, meaning where you park and how your car enters the spot, either pulling in or backing in. Owners have also reported that pulling into the correct driveway is a relatively rare thing for FSD, something else that needs to be confronted.

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Musk basically confirmed that all of these things would be part of Tesla’s plan to address driver preferences with FSD:

It’s obvious there is something big coming with FSD, and the company’s focus seems to be eliminating any intervention that would be related to preferences. This is probably the biggest bottleneck between Tesla and being fully autonomous. Critical interventions do occur, but they are much less frequent.

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The only time a driver should be taking over is because of a critical intervention; this seems to be the goal of Tesla right now.

This all seems to be a priority as Tesla continues to move closer to the prospect of unsupervised driving.

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