SpaceX
SpaceX CEO Elon Musk says Starlink launch will reuse Falcon Heavy’s fairing
SpaceX CEO Elon Musk has revealed that the company successfully recovered both Falcon Heavy Flight 2 fairing halves intact and plans to reuse them this year on an operational Starlink launch.
This will be SpaceX’s first attempt to reuse Falcon payload fairings, a capability that could ultimately save up to 10% – around $6M – and countless production time per launch. Intriguingly, the Falcon Heavy fairing halves were recovered without the use of dedicated recovery vessel Mr. Steven – the vessel has been out of commission for months after an accident ripped off two of its four arms. Instead, the fairing halves parasailed to a soft ocean landing where SpaceX recovery experts aboard GO Searcher and GO Navigator carefully extracted both halves from the surface of the Atlantic. In order to reuse the fairing halves, SpaceX will need to somehow solve – if they haven’t already – the challenge of cleaning contaminated fairings.
How To Clean Your Fairing
The challenge of reusing payload fairings that have been some combination of immersed and thoroughly coated with salt water is by no means an easy one, evidenced primarily by the fact that no company or space agency has yet to try. As a temporary part of a rocket’s uppermost stage, every kilogram of weight present on the fairing can have an almost equally deleterious effect on that same rocket’s ability to place payloads in orbit. This is why the added complexity of additional deployable fairing mechanisms is universally accepted – by jettisoning fairings as soon as possible, rockets are able to carry significantly more payload to a given orbit.
This means that adding even more weight and complexity to fairings – optimized to be extraordinarily light for their often massive sizes – is avoided with extreme prejudice. This is the problem SpaceX faces in its quest to reliably recover and reuse fairings – how does one take fragile objects landing in the middle of the ocean after traveling no less than two kilometers per second (~1.2 mi/s) at apogees upwards of 100 km (62 mi) and prevent them from being destroyed, all while keeping them as light as possible?
SpaceX’s solution was to attach GPS-guided parafoils to each fairing half, as well as cold gas thrusters that allow the halves to orient themselves and remain stable between separation and parafoil deployment. Part two of that solution was to quite literally catch those floating halves out of the air with a giant, speedy boat outfitted with an equally giant net held up by four arms. Despite 5+ catch attempts and many, many controlled drop tests, that vessel – Mr. Steven – has never managed to successfully catch a Falcon fairing half. In early 2019, SpaceX moved the ship from California to Florida due to a launch drought facing the company’s West Coast launch facilities. Less than two weeks after arriving in Florida, an unknown accident resulted in the vessel losing both its net and two of its four arms to the sea, and Mr. Steven has since remained inactive – aside from infrequent trips out and about – in Port Canaveral.
Judging from CEO Elon Musk’s twofold declaration that SpaceX will now reuse its first Falcon fairings without any involvement from Mr. Steven, it’s safe to say that success will sadly bring about the end of the leased fairing recovery vessel’s utility to SpaceX. However, there is a chance that this is not the case.
The fact that SpaceX is choosing to reuse a partially waterlogged fairing for the first time on an internal Starlink internet satellite launch suggests that whatever the solution may be, it may not be compatible – or at least kosher – with current industry standards. All prior reusability milestones have been tested on commercial launches after some sort of private agreement with the customers involved, including the first Falcon 9 booster reuse and the first instances of the same booster being launched for the third time. This is likely not fair to SpaceX or its excellent customers, though. The simpler explanation is that testing unproven technologies and hardware solutions on internal launches fundamentally minimizes the risk conveyed to paying customers that likely can’t afford to lose their spacecraft.
There remains one additional explanation: SpaceX’s solution for reusing waterlogged fairings is, in fact, too immature or is an unacceptable risk of contamination for customers relative to industry standards of design. Instead, SpaceX may have chosen to build some sort of contamination resistance into the clean-slate design of its Starlink satellites, something that would be impractical to expect of customers who have spacecraft that are either already designed or built. Redesigning – let alone rebuilding – complex systems is an extremely costly endeavor. However, wide-reaching changes are far easier to implement when starting from a functionally blank page, exactly where SpaceX is with its first-generation Starlink satellites. As such, SpaceX may have decided to do just this after it realized that catching fairings could be far harder than expected and would thus remain a major bottleneck for Starlink launches if left unsolved.
Finally, it’s unclear if Musk is referring to the very first operational Starlink launch – scheduled as early as May 2019 – or an additional follow-on mission later this year. Refurbishing and reflying fairings for the first time in just one month would be an extremely impressive achievement but may also be an impractical schedule for pathfinder technology development. For now, this serves as a reminder that SpaceX’s first operational Starlink launch is scheduled one month from now.
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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.
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.
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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