SpaceX
SpaceX given the go-ahead for Crew Dragon’s first journey into Earth orbit
NASA and SpaceX officials announced on Friday that the company is ready to conduct the first orbital launch of Crew Dragon as early as March 2nd, a demonstration that will directly precede the first crewed launch on a US rocket in more eight years.
Shortly after the news broke, NASA hosted what can only be described as an effusive press conference in which typically reserved officials like Bill Gerstenmaier and Kathy Lueders discussed the Commercial Crew Program milestone. Above all else, they reported no glaring concerns and rather unequivocally echoed the affirmation that SpaceX, NASA, Falcon 9, and Crew Dragon are all ready and eager to get to orbit. SpaceX now aims to roll the spacecraft and rocket out to the launch pad – Kennedy Space Center’s Pad 39A – on Thursday, February 28th, roughly 48 hours before T-0.
The Demo-1 Flight Readiness Review has concluded. The Board set March 2 at 2:48 a.m. EST as the official launch date for @SpaceX's flight to @Space_Station. #LaunchAmerica https://t.co/2DIJ99guG2 pic.twitter.com/86lV29gVNS
— NASA Commercial Crew (@Commercial_Crew) February 22, 2019
Relative to any number of recent NASA press conferences, the mood in the conference hall following the joint NASA-SpaceX Flight Readiness Review (FRR) was one of obvious relief and elation, marked particularly by heaps of praise and rare personal segues from Mr. Gerstenmaier (associate NASA administrator of Human Exploration and Operations) and Ms. Lueders, NASA’s Commercial Crew Program manager.
“We’re go for launch, we’re go for docking, and we’ll work through [one minor ISS partner concern] next week. But again, just a phenomenal review today … It’s great being back here again [and] starting to get that feeling of launching again and getting ready to go fly.” – Bill Gerstenmaier, NASA HEOMD, 02/22/19
“Right now, [we] do not have any open, joint risks [present on] this mission. It’s been part of our FRR process, and it was the reason why I could tell Mr. Gerstenmaier … that we [are] ready to go fly.” – Kathy Lueders, NASA CCP, 02/22/19
SpaceX Vice President of Build and Flight Reliability Hans Koenigsmann was equally enthusiastic about the completed review, describing his firm belief that – regardless of any delays it may have caused – the Crew Dragon spacecraft and its Falcon 9 rocket would ultimately be the best they could be as a result of the constant back-and-forth between NASA and SpaceX engineers and analysts.
The main mission objectives for DM-1: pic.twitter.com/i5rCKSQEDP
— SpaceXUpdates (@SpaceXUpdates) February 22, 2019
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Aside from the encouraging FRR and follow-up press conference, SpaceX and NASA are reportedly planning on making the hosted webcast of Crew Dragon’s inaugural launch something fairly spectacular. While no specifics were given, this would come as no surprise knowing SpaceX’s past history of exceptional launch webcasts combined with CEO Elon Musk’s equal affinity to spectacular events. According to Koenigsmann, Crew Dragon will be outfitted with a mannequin (effectively an aerospace-grade crash test dummy) dressed in one of SpaceX’s in-house spacesuits, a globally-recognizable icon thanks to the widespread popularity of Falcon Heavy’s launch debut and special payload.
“The only work between now and launch is what we would consider standard work and [the] standard close-out of activities moving forward. So that shows you that we’re fully ready to go do this DM-1 flight next Saturday.” – Bill Gerstenmaier, NASA HEOMD, 02/22/19
The spacecraft will also apparently be nearly identical to DM-2’s Crew Dragon, the first vehicle that will fly with astronauts onboard. As such, it will presumably be outfitted with everything a crew of astronauts would need, including seats, a functioning control panel/display, lighting, and the general fit and finish of an interior ready to support a human presence for multiple days straight. Live camera views of both Starmannequin and out of Crew Dragon’s windows will thus be par for the course, among many other unique perspectives. SpaceX will also offer a rare hosted webcast for Crew Dragon’s arrival and docking at the International Space Station, scheduled roughly 24 hours after launch, an event that could potentially include exceptionally rare feeds from Dragon’s own onboard cameras.
Regardless, this is an event you do not want to miss. If all goes well during the Feb. 27 launch readiness review (LRR) and Falcon 9’s subsequent roll-out to Pad 39A, SpaceX will attempt its first Crew Dragon launch at 2:49 am EST (07:49 UTC) March 2nd.
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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.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
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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.
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.
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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.
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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.
Elon Musk
Another Tesla SpaceX merger prediction by ARK Invest has Elon Musk talking
Elon Musk again denies a Tesla China split as new SpaceX merger speculation resurfaces quickly.
Elon Musk restated that Tesla has no plans to separate its China business from the rest of the company, responding to a new round of merger speculation from ARK Invest.
On the firm’s “Brainstorm” podcast, Cathie Wood’s team, including chief futurist Brett Winton and research director Nick Grous, argued a Tesla and SpaceX combination remains likely, with an announcement possible before the end of the year even if the deal itself would not close that quickly. Winton called Tesla’s Shanghai operations a “small ish wrinkle” for a merger rather than a real obstacle, since SpaceX’s national security work with the U.S. government sits uneasily next to Tesla’s manufacturing base in China.
Musk pushed back on the framing directly. “China is awesome. I strongly encourage people to visit,” he wrote on X. He also repeated language he first used in late July, when the Wall Street Journal reported that Tesla executives had been told to prepare for a possible spinoff, sale, or closure of the China business ahead of a SpaceX tie up. Musk called that report “absurdly fake news” at the time, adding that a separation had “never even come up in a discussion ever,” a line he echoed again this week.
The repeated denial has not settled the underlying question, because Shanghai’s role in Tesla’s business is exactly what makes a merger complicated. Gigafactory Shanghai still ships more than half of Tesla’s global deliveries and functions as the company’s main export hub for Europe and Asia. Teslarati previously reported on Musk’s initial denial, and the merger conversation itself has been building since SpaceX’s IPO gave it public shares to use as acquisition currency.
Wedbush’s Dan Ives has pegged the odds of a Tesla SpaceX merger at 80 to 90 percent by early 2027, and ARK’s prediction of a year end announcement adds another data point to that timeline, even as Musk keeps rejecting the specific mechanics reporters have described. Neither position rules out the other. Musk can deny a China spinoff was ever discussed while analysts still expect some form of combination to move forward, since ARK and Ives are both describing convergence at the corporate level, not necessarily the internal restructuring the Journal described in July.
For now, Tesla’s China business remains intact, and Musk’s comments this week make clear he has no interest in publicly walking that position back, no matter how often the merger question resurfaces.
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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
