SpaceX
SpaceX’s first Falcon 9 Block 5 booster casualty battered but still intact in aerial photos
Shortly after successfully sending a reused Cargo Dragon spacecraft on its way towards the International Space Station (ISS), SpaceX Falcon 9 Block 5 booster B1050 experienced an anomaly with its grid fins during a planned landing, resulting in a shockingly soft (but unintentional) landing just off the Florida coast.
By some minor miracle, the drastically off-nominal loads experienced by the booster during its unintended departure from controlled flight somehow did not rise to the bar of structural failure. Nevertheless, now floating a handful of miles east of Port Canaveral’s mouth, B1050 did not make it through the ordeal unscathed.
https://twitter.com/_TomCross_/status/1070742919986991107
A little more than 24 hours after the booster found itself floating sideways in the Atlantic Ocean, B1050 had floated a solid ten miles south of its original position into waters and airspace that no longer fell under the purview of Cape Canaveral Air Force Station, technically a military outpost. As the captains of tugboat Eagle and SpaceX support vessel GO Quest discussed the logistics of returning the booster to port with the local harbormaster and US Coast Guard, Teslarati photographer Tom Cross chartered a local helicopter to get a slightly better view of the waterlogged rocket and its ad-hoc recovery operations.
A casualty of war (with the air)
Second only to the fact that the booster appears to be in disproportionately good shape considering the circumstances, by far the most noteworthy feature of the newest addition to SpaceX’s marine fleet is the sheer damage suffered by B1050’s interstage, the black carbon fiber composite structure that topsFalcon 9 Block 5 boosters and hosts its grid fins and stage separation mechanism.
Revealed from an aerial perspective, it almost looks as if one side of the composite cylinder was smashed with a giant hammer, tearing off at least 20% of the entire interstage – including one of four titanium grid fins – while leaving another large segment hanging on by only partially-figurative carbon fiber threads.
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- Falcon 9 B1050 is seen here shortly before launch with an intact interstage. (Tom Cross)
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- B1050 viewed from Cocoa Beach. (Tom Cross)
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- Falcon 9 B1050’s interstage, or what’s left of it. (Tom Cross)
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- RIP grid fin. (Tom Cross)
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It’s not 100% clear why B1050’s interstage was so readily destroyed but a narrative can certainly be drawn from the current public record. After its grid fins lost hydraulic power and became stuck at an extreme angle, B1050 almost immediately lost control and began rapidly and quite brutally spinning and flailing, tossed around as it hurtled through the air at supersonic speeds. Being a predominately smooth cylinder, Falcon 9’s first stage is inherently prone to rotation in the presence of high-velocity air currents, which is why its grid fins are an absolute necessity for maintaining control authority during in-atmosphere “flights”.
Engines stabilized rocket spin just in time, enabling an intact landing in water! Ships en route to rescue Falcon. pic.twitter.com/O3h8eCgGJ7
— Elon Musk (@elonmusk) December 5, 2018
In a show that will turn the stomach of anyone familiar with a rocket’s typically narrow load tolerances, Falcon 9 B1050 experienced extreme aerodynamic stresses during the worst of its uncontrolled tumble, to the extent that the entire booster and interstage can be seen visibly twisting at least 5 degrees left and right from the perspective of an onboard camera. In the video above, focus on the center of Falcon 9’s grid fins during the first and last 5-10 seconds to properly visualize the extreme forces at play.
It might look fairly innocent to the untrained eye, but keep in mind that Falcon 9’s interstage is no more than a couple of inches thick and is absolutely massive, stretching 3.7m (~12 ft) in diameter. Perhaps even more importantly, the damage to the interstage has almost without a doubt rendered it unusable from the perspective of SpaceX’s established methods of safely moving and manipulating Falcon 9 boosters.
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- Technicians attach an older interstage-grabber to lift B1046 after its first recovery. (Tom Cross)
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- One of SpaceX’s East Coast interstage jigs is pictured here atop B1049. (Tom Cross)
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- A Falcon 9 Block 5 booster bares its interstage and pusher rod, offering a perfect illustration of its scale. (Bloomberg)
All of those methods rely on adapters that attach to the interstage to lift the rocket vertically or support part of its ~30-ton dry mass horizontally. Lacking a sound interstage, it’s now entirely unclear how SpaceX might go about getting B1050 onto land without damaging it further. In simpler terms, this bodes very, very badly for any plans to safely reuse B1050 in the near (or distant) future. After suffering loads that severely weakened and ultimately tore its interstage to pieces, it’s reasonable to assume that the rest of the rocket’s lithium-aluminum propellant tanks experienced stresses that are at least roughly comparable.
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If that’s the case, perhaps the only real hope for B1050’s ‘reuse’ will be the recovery of certain subcomponents and miscellaneous parts that may have made it through the ordeal unscathed or with only minor damage. The three remaining titanium grid fins are a guaranteed recovery, while COPVs, cold gas thrusters, avionics boxes, and maybe even some of its nine Merlin 1D engines could be salvageable with some level of refurbishment.
In the meantime, the tentative plan right now is to two B1050 into Port Canaveral sometime after dawn tomorrow, either ending up at drone ship OCISLY’s berth or another less-developed section of the port.
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!
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
