SpaceX
SpaceX to submit Moon lander proposal for latest NASA spaceflight competition
SpaceX reportedly plans to submit its own human-rated Moon lander design for NASA’s latest major request for proposal (RFP), part of the agency’s rough plan to return humans to the Moon no earlier than 2028.
Meant to begin delivering NASA astronauts to the surface of the Moon as early as 2028, the agency hopes to base those lander operations on a thus far unbuilt space station orbiting the Moon with the support of its SLS rocket and Orion spacecraft.
This is actually a pretty big deal. https://t.co/P6LXAMXVJI
— Eric Berger (@SciGuySpace) February 11, 2019
SpaceX will submit a lunar lander design.
— Eric Berger (@SciGuySpace) February 11, 2019
Meant to build directly off of SLS/Orion, a NASA-designed rocket and spacecraft beset with at least three years of delays and billions of dollars in cost overruns, it’s unclear where SpaceX might fit into NASA’s latest modernized attempt at an Apollo Program 2.0. Alongside the 2017 cancellation of Crew Dragon’s propulsive landing program due in part to the likely cost of the certification burden NASA would have placed on the technology before allowing it to land astronauts, SpaceX also canceled Red Dragon (and thus Grey Dragon), a proposal to use a minimally modified version of Crew Dragon as an ad-hoc Mars lander and R&D testbed.
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Aside from the likely cost of certifying propulsive Crew Dragon to NASA specifications, CEO Elon Musk also explained the program’s cancellation as a consequence of SpaceX’s far greater interest in what he described as “vastly bigger ship[s]” in July 2017. This translated into a presentation at IAC 2017 a few months later, where Musk revealed SpaceX’s updated design for a giant, fully-reusable launch vehicle meant to enable sustainable Mars colonization, known then as BFR. BFR has since been reconceptualized at least two more times, settling (at present) on a radical new approach said to rely heavily on stainless steel as a replacement for advanced carbon composites.
Initially making one 200 metric ton thrust engine common across ship & booster to reach the moon as fast as possible. Next versions will split to vacuum-optimized (380+ sec Isp) & sea-level thrust optimized (~250 ton).
— Elon Musk (@elonmusk) February 1, 2019
In the second half of 2018 and the first few months of 2019, the SpaceX CEO’s BFR (now Starship/Super Heavy) narrative has noticeably diverged from a largely exclusive focus on Mars to include a new interest (be it genuine or out of convenience) in the Moon. Most notably, Musk stated in January and February 2019 that SpaceX’s single-minded goal for BFR was now “to reach the moon as fast as possible”. In response to a question about SpaceX’s intentions for the first few orbital BFR (Starship) launches, Musk also replied, “Moon first, Mars as soon as the planets align”.
This is likely explicitly connected to Japanese billionaire Yusaku Maezawa’s decision to purchase the first operational Starship (BFR) launch in support of his philanthropic #DearMoon project, meant to send 8-10 artists from across Earth on the first commercial voyage around the Moon as early as 2023. While no specific value was given, the implication of CEO Elon Musk’s emotional response when discussing the financial support pegged the number in the hundreds of millions of dollars, likely on the order of $250M to $500M. However, any astute bureaucrat or aerospace executive would also be (and have been) distinctly aware of a new political undercurrent pushing for the US and NASA to return humans to the Moon, circulating for the last few years before breaking through to the surface in the last six or so months.
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- SpaceX’s updated BFR spaceship seen cresting over the Moon’s limb. (SpaceX)
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- SpaceX’s 2017 BFS (now Starship) delivers cargo to a large lunar base. (SpaceX)
Orion/SLS versus Starship/Super Heavy?
Per Musk’s frequent and insistent comments on just how hard he expects it to be for SpaceX to fully fund the development of BFR, it would come as no surprise to learn that SpaceX had set its eyes on potential sources of major BFR development funds. Where exactly NASA will find the multibillion-dollar sum likely required to develop even a commercial human-rated Moon lander is entirely unclear, but alas. Although NASA’s new Moon mission seems like an apt fit for SpaceX, funding aside, the problem remains that SpaceX’s next-generation Starship/Super Heavy (formerly BFR) launch vehicle poses a direct, existential threat to NASA’s SLS rocket and Orion spacecraft, an almost entirely expendable system likely to cost no less than $1B per launch and unlikely to launch for the first time until 2021.
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NASA’s human return to the Moon is meant to directly complement SLS/Orion thanks to the intention of using a theoretical Moon-based space station (known as Gateway) in a bizarre lunar orbit (known as a “Near Rectilinear Halo Orbit” or NRHO) as the base of lunar-landing operations. The decision to place said Gateway in a lunar halo orbit derives almost exclusively derives (PDF) from a separate decision to design NASA’s future exploration plans around SLS and Orion, particularly Orion in the context of the Moon. Put simply, Orion is relatively mass-inefficient and has a fairly limited amount of delta V (shorthand for the capacity to change one’s velocity), preventing far more useful orbits (i.e. actual lunar orbits). The fragile web of Gateway, SLS, Orion, and any potential crewed Moon landers is intentionally designed to be interdependent, meaning that each piece on its own makes little objective sense and has no obvious functional benefit relative to a bevy of alternatives.
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- SLS Block 1. (NASA)
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- NASA’s proposed Moon-based space station, known as Gateway. (NASA)
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- BFR’s spaceship and booster (now Starship and Super Heavy) separate in a mid-2018 render of the vehicle. (SpaceX)
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- A BFS attempts a Mars landing in this official updated render. (SpaceX)
As designed, SpaceX’s Starship/Super Heavy combo would be a nearly redundant and radically simpler solution to the mishmash of Gateway, SLS, Orion, and others. A return to using propulsive Crew Dragon landings as a method of significant payload delivery to the lunar surface is immensely unlikely. The value of an entirely new SpaceX-built craft is equally unclear, given Musk and SpaceX’s general stance on putting development funds towards things that bring the company closer to achieving its ultimate goal of sustainable interplanetary colonization. Regardless, it will undoubtedly be exciting to see what happens and whether SpaceX actually chooses to submit a proposal for one or all aspects of NASA’s baselined lunar lander.
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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
