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SpaceX’s Florida Starship shown off in aerial footage as Texas prototype grows rapidly
Local amateur photographer and spaceflight fan Michael Tapes has graciously shared a new aerial view of SpaceX’s Florida Starship facility, where dozens of workers can be seen buzzing around what is hoped to become the first orbital-class prototype of the massive spaceship and upper stage.
Tapes’ aerial footage offers a unique look at the layout of SpaceX’s Florida site as of July 9th, illustrating just how active and expansive it is. Some workers can be seen building something (perhaps preparing a new worksite) under a large, white tent, while another group surveys two large Starship segments and a third works to prepare new stainless steel ring sections. Of note, those two large Starship segments appear to be bereft of any obvious activity, perhaps a consequence of a fire that caused about $100,000 in damage the day prior (July 8th).
In fact, the shipping container that took what looks like the entirety of fire-related damage is visible on the west side of the SpaceX facility’s main hangar. Workers could be seen heading inside the extremely scorched container, likely removing debris, cleaning up the site of the incident, and preparing to scrap the damaged container itself.
Thankfully, nobody was injured by the fire and ~$100K of damage is certainly an inconvenience but is definitely nothing more for a multibillion-dollar company like SpaceX. Given that dozens of vehicles are visible in the parking lot, it’s safe to say that tons of work is ongoing under the roofs of the site’s many covered buildings, potentially designing Starship/Super Heavy, working on the rocket’s first orbital-class thrust structures, building new steel ring segments, and much more. With any luck, work on orbital Starship assembly and integration has already resumed following the small July 8th fire.
Star(ship) Wars
Speaking of that work, prior to the last week or so of progress on SpaceX South Texas’ own orbital Starship prototype, both Florida and Texas appeared to be more or less tied with two large Starship segments each and various other 9m-diameter subsections spread around their respective facilities. Impressively, Boca Chica has been marked by a flurry of recent work as multiple in-process steel rings were stacked on top of the Texas Starship’s propulsion and tankage section.
In just the last two weeks of June, workers thus pushed through the brutal South Texas heat and humidity to stack three new sections of fuselage, literally doubling the height of Boca Chica’s (hopefully) orbital-class Starship prototype in a dozen or so days. The ship’s conical nose section continues to be polished, while some sort of additional work is likely going on inside, away from public view. It’s hard to get a good overhead view but it’s safe to assume that – in the large barrel sections both in Florida and Texas – technicians are working to install (or at least prepare for) stainless steel tank domes, one of the last major finishing touches for spacecraft’s tank sections.
A huge amount of work remains for both sites but the visible progress as new ship segments are stacked and welded together is undeniably cathartic and satisfying. Working 10-12 hour shifts exposed to the Texas and Florida summer sun, heat, and wildlife is in no uncertain terms bound to be a hellish experience, but at least the hard work is so obviously producing results.
The most exciting kind of grass-watching
Back in Florida, several additional Starship barrel sections are in various stages of work, at least two of which appear to be nearly ready for stacking atop the propellant tank section already being assembled. Meanwhile, propellant tank domes were spotted in different stages of fabrication inside the Florida facility’s main hangar-cum-production-line, awaiting their turn to leave the building and prepare for installation on Starship East.
All said and done, once those visible segments are installed, Starship East will (at least by appearances) be neck and neck with its Texas sibling once more. In reality, there is likely no actual race between the two sites and they are reportedly sharing any critical discoveries and lessons-learned. Nevertheless, humans are notoriously competitive and one can only begin to imagine the (hopefully friendly) rivalry forming between the geographically distinct teams.
At the same time, SpaceX’s Florida team has several home-field advantages, so to speak, owing to their proximity to the several hundred SpaceXers working at the company’s Florida launch facilities and recovery fleet. Additionally, Florida’s Starship facility is just a few dozen miles away from SpaceX’s Kennedy Space Center Pad 39A, the most likely site of Starship’s (and Super Heavy’s) first suborbital and orbital launch attempts.
At the end of the day, a little friendly internal competition and – more so – a literal Starship A/B test are bound to be a huge benefit for SpaceX’s next-gen launch vehicle program, significantly increasing the speed at which the company can make mistakes, solve problems, and get Starship ready for orbit.
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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
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.
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
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.
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
