SpaceX
SpaceX’s Falcon 9 Block 5 ready for first Return-To-Launch-Site booster landing
Falcon 9 B1048.2 is vertical at SpaceX’s Vandenberg Space Launch Complex 4 (SLC-4) facilities ahead of the rocket’s second launch, targeted at 07:21 PM PDT, Oct. 7 (02:21 UTC, Oct. 8). A bit less than ten minutes after liftoff, B1048 will attempt a Return-To-Launch-Site (RTLS) landing just ~1400 feet from the launch pad.
Meanwhile, Mr. Steven is ready to depart Port of San Pedro in support of Falcon fairing recovery operations soon after liftoff, the vessel’s fifth attempted catch in ~12 months of active service with SpaceX.
Falcon 9 B1048 and SAOCOM-1A as of 10:50 PM PDT. Photo courtesy of @_TomCross_ ?? pic.twitter.com/vlaB1fkk5p
— Eric Ralph (@13ericralph31) October 7, 2018
A few hours after the vessel’s four arms and net were fully installed (the first time in more than six weeks), SpaceX technicians performed a series of last-minute tests with a Falcon fairing half placed on his net to verify that its mechanised rigging was working as intended, while also double-checking data connectivity between the fairing and its target (the net). Pre-launch checkouts largely completed, Mr. Steven now has to travel a short 200 miles to reach the region where SpaceX expects Falcon 9’s fairings to be recovered.
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- On September 4th, SpaceX performed a mechanical test of a fairing’s separation mechanism, in this case used to hold a (detachable) lifting harness. (Pauline Acalin)
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- Note the taut, yellow ropes connected to the fairing at its original serparation connector ports. (Pauline Acalin)
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- After an audible “3..2..1”, a sharp noise much like compressed gas being released was followed by a clang as the harness dropped. (Pauline Acalin)
Of Falcons and fairings
It may feel quite different watching in real time, but SpaceX has made a huge amount of progress towards successful and routine fairing recoveries over the course of the last year and a half. Before the company became truly famous (and popular), more than two years (2013-2015) and a dozen distinct attempts were spent patiently learning how to recover Falcon 9 boosters, ranging from the first launch of Falcon 9 V1.1 (CASSIOPE, late 2013) to multiple instances where boosters exploded in spectacular fashions on drone ships Just Read The Instructions and Of Course I Still Love You after SpaceX began true landing attempts.
In fact, the first intact recovery didn’t even take place on a drone ship after years of extensive testing at sea – in December 2015, after separating from its Orbcomm-2 satellite constellation payload, Falcon 9 B1019 became the first booster recovered by SpaceX in one piece, landing almost flawlessly at the company’s just-finished Cape Canaveral landing zone, known as LZ-1. Several months later, SpaceX successfully recovered its first Falcon 9 at sea, landing a booster on OCISLY shortly after launching the CRS-8 Cargo Dragon mission, although several more failures or near-failures followed as recovery technicians and engineers worked through a diverse and unpredictable series of challenges as they arose.
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Rocket recovery: it’s not easy
Even in 2018, SpaceX unintentionally expended Falcon Heavy’s center core, demonstrating that even three dozen successful Falcon 9 and Heavy booster recoveries are not necessarily enough to shine light on or predict all possible modes of failure. Around 7:21 PM (PDT) today, barring a scrubbed launch attempt, the already-flown Falcon 9 booster B1048 – refurbished from landing to launch in just ~74 days – will likely launch and land once more, and most of the world wont even blink and eye. In the eyes of those that don’t or haven’t followed SpaceX obsessively, rocket booster recovery and reuse is to some extent already perceived as routine, logical, and inevitable less than three years after the technology’s first true Kitty Hawk moment.
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- One half of SpaceX’s Iridium-6/GRACE-FO just moments before touchdown on the Pacific Ocean. (SpaceX)
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- Close. (SpaceX)
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- Hans Koenigsmann was extremely excited about the condition of this particular fairing half, and included this photo in his IAC 2018 keynote. (SpaceX)
The point of this brief SpaceX history lesson is to emphasize that fairing recovery is an extremely young technology, even for SpaceX. Before Mr. Steven swooped into existence, SpaceX had begun attempting to softly land payload fairings in the ocean around the start of 2017, and Mr. Steven famously returned to Port of San Pedro with an intact (but unreusable) fairing half in March 2018 after successfully launching Earth-imaging satellite PAZ. Comparing historical apples to present-day oranges, it may be safe to assume that fairing recovery’s Orbcomm-2 moment – Mr. Steven’s first successful catch – is already on the horizon.
In the meantime, it never hurts to remind oneself that – vicarious frustrations aside – observers are likely watching history unfold in real-time once again. SpaceX’s SAOCOM-1A launch webcast will begin around 7PM PDT – 15 or 20 minutes prior to launch – and can be found at the link below.
For prompt updates, on-the-ground perspectives, and unique glimpses of SpaceX’s rocket recovery fleet check out our brand new LaunchPad and LandingZone newsletters!
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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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Tesla CEO Elon Musk says flying cars are coming
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
