Space
SpaceX wins NASA contract to launch Earth Observing System, but current administration has other plans
SpaceX recently snagged an $80.4 million NASA contract to launch an upcoming Earth-observing satellite sometime in 2022. That is, if the mission isn’t scrapped due to budgetary issues.
A used Falcon 9 rocket is slated to ferry the 3,748-lb. (1,700 kg) Plankton, Aerosol, Cloud, and ocean Ecosystem satellite (aka PACE) to orbit sometime in December 2022. The mission, which provides data on oceans and particles in the atmosphere, is expected to launch from Cape Canaveral Air Force Station in Florida.
Its goal: to help us better understand our home planet. SpaceX is expanding its portfolio, after receiving certification for science launches in 2016. To date, SpaceX launched a bevy of scientific satellites including Jason-3 in 2106, the Transiting Exoplanet Survey Satellite (TESS) and GRACE-FO missions in 2018, and the upcoming Sentinel 6A in Nov. 2020.
But it’s been a tough journey for PACE. The satellite has been on the chopping block several times, but managed to avoid getting the ax so far.
That’s because the Trump administration has tried to cancel the ocean-watching mission three separate times now, in an effort to reduce the Earth science budget. Each time the president has tried to cut its funding, Congress voted to support it, including authorizing $131 million for the mission in December 2019.
So NASA has moved ahead with the development of the mission, and selected SpaceX as the launch provider on Feb. 4.
“SpaceX is honored to continue supporting NASA’s critical scientific observational missions by launching PACE, which will help humanity better understand, protect and preserve our planet,” Gwynne Shotwell, SpaceX’s president and chief operating officer, said in a company statement.
PACE will focus on our planet’s oceans, the clouds, and aerosols (small air particles) in an effort to better understand phytoplankton — tiny plant-like organisms in the ocean that are the base of the food chain. These organisms can tell us a lot about how climate change is affecting the environment.
“PACE will help scientists investigate the diversity of organisms fueling marine food webs and the U.S. economy, and deliver advanced data products to reduce uncertainties in global climate models and improve our interdisciplinary understanding of the Earth system,” NASA said in a statement.
“It will also continue systematic records of key atmospheric variables associated with air quality and Earth’s climate,” officials wrote on the PACE mission’s website.
Like most plants, phytoplankton relies on chlorophyll to capture sunlight, and then using photosynthesis to turn it into chemical energy, releasing oxygen as a byproduct.
Phytoplankton are a diverse variety of species and their growth depends on the availability of things like carbon dioxide, sunlight, and nutrients. Just like their terrestrial counterparts, phytoplankton require can nutrients such as nitrate, phosphate, silicate, and calcium, depending on the species.
Other factors that influence growth rates are water temperature and salinity, water depth, wind, as well as what sort of predators are nearby.
When conditions are just right, phytoplankton populations can grow explosively, a phenomenon we call a bloom. Blooms in the ocean may cover hundreds of square kilometers and are easily spotted in satellite imagery. A bloom may last several weeks, although the life expectancy of any individual organism is rarely more than a few days.
Phytoplankton are important because they are the foundation of the aquatic food web, feeding many different creatures from other microscopic organisms to enormous, mega-ton whales.
Phytoplankton aren’t always a good thing — certain species are known to produce powerful biotoxins, like the red tide. These toxic blooms can kill marine life and ultimately people if they accidentally eat contaminated seafood or by inhaling the organisms.
PACE’s primary tool is called the Ocean Color Instrument (OCI). It will measure the color of the ocean in a broad range of wavelengths, from ultraviolet to shortwave infrared, according to NASA. The satellite will observe the Earth from an orbital perch about 420 miles (675 kilometers) above the planet. (For reference, the space station orbits at 250 miles or 400 km up.)
“The color of the ocean is determined by the interaction of sunlight with substances or particles present in seawater, such as chlorophyll, a green pigment found in most phytoplankton species,” according to the mission’s website. “By monitoring global phytoplankton distribution and abundance with unprecedented detail, the OCI will help us to better understand the complex systems that drive ocean ecology.”
PACE will be in a sun-synchronous orbit, which will allow for consistent daylight conditions for imaging. This makes it easier for scientists to compare different regions and the same regions over long periods of time — if the satellite makes it to orbit.
Today, the president released his budget request for 2021, and once again, PACE is one of two Earth science missions he wants to cancel. Will its luck hold out? Will Congress vote to approve funding for the vital satellite despite the president’s suggestion? Only time will tell.
But with many coastal states recently suffering from red tide, this satellite will be a valuable tool in scientists’ arsenal to help them better understand these tiny organisms.
For years, there have been images and videos across social media platforms that have reminded me of when I was a 15-year-old kid teased by “Xbox 720” videos on YouTube. These videos are of the supposed “Tesla Phone” that Elon Musk was secretly developing in between leading Tesla with its electric cars and SpaceX with its reusable rockets.
Would you buy a Tesla phone ? pic.twitter.com/aaTwvvIJit
— Tesla Owners Silicon Valley (@teslaownersSV) October 6, 2023
Although Musk has put those rumors to bed several times, it was never completely out of the realm that he could get involved in cell phones in some capacity. Think outside the box and more macro-level, though. Instead of reinventing the computer, Musk reinvented connectivity by developing Starlink with SpaceX.
It could be something similar, TD Cowen analyst Gregory Williams said in a note last week, where he hinted SpaceX could be gathering some steam to acquire T-Mobile.
Williams said it would be the “clear choice” for SpaceX if it decided to go through with a network acquisition. He also suggested AT&T.
The move would be possible through selling more of its own stock, which would help SpaceX raise the money to purchase T-Mobile, which would cost roughly $300 billion. It could be one of the moves SpaceX makes post-IPO in terms of an acquisition: it already acquired Cursor AI for $60 billion.
Other analysts, like Dan Ives of Wedbush, believe SpaceX and Tesla will eventually merge into one anyway, and that conglomeration could come as soon as this year, some have said.
The implications of SpaceX purchasing T-Mobile are massive. A combined entity would create a truly ubiquitous network: T-Mobile’s terrestrial 5G towers and Starlink’s growing constellation of Direct-to-Cell satellites. This would essentially eliminate dead zones across the U.S. and potentially globally.
SpaceX would instantly become a full-scale facilities-based carrier with satellite differentiation; a huge advantage. This would pressure AT&T and Verizon heavily.
There are also concerns like a potential reduction in long-term competition, and of course, a deal of that size would face intense scrutiny from government agencies.
The strategic fit is compelling due to the existing Starlink–T-Mobile partnership and complementary technologies (space + terrestrial). It could create a dominant integrated communications player. However, the regulatory, financial, and execution hurdles are enormous — this remains highly speculative with no indication SpaceX is actively pursuing it right now.
Elon Musk
SpaceX’s newest Starmind will make earth data centers obsolete
Elon Musk confirmed Starmind as SpaceX’s AI satellite constellation name, targeting one million orbital compute nodes.
Elon Musk confirmed that Starmind will be the official name of SpaceX’s planned AI satellite constellation, following a trademark filing by xAI that surfaced earlier this week. Starmind is what’s being described to the FCC as a constellation of up to one million AI satellites
It’s worth noting that SpaceX’s Starlink communication satellite and Starmind are built on the same orbital infrastructure concept but serve entirely different purposes. Starlink is a connectivity network, with satellites receiving and relaying data between points on Earth, and functioning as a high-speed internet backbone in space. The satellites themselves do not process or think, and move information from one place to another, the same function a fiber cable performs underground.
SpaceX just forced Verizon, AT&T and T-Mobile to team up for the first time in history
Starmind, on the other hand, is something completely different, and tather than moving data, its satellites would compute data through artificial intelligence and directly in orbit using onboard processors powered by large solar arrays. Where a Starlink satellite is essentially a very fast pipe, a Starmind satellite is a server. The practical implication is that Starmind would allow AI models to run inference, process queries, and generate outputs from space, then beam results down to users anywhere on Earth within milliseconds, and without the data ever needing to travel to a terrestrial data center.
Starship will be able to carry 30 to 50 AI1 satellites per launch, delivering the equivalent of dozens of server racks per flight, with no land acquisition, no power grid approval, and no cooling infrastructure required on the ground.
SpaceX is pursuing this new technology as terrestrial data centers are running into hard limits such as lack of physical space, community opposition, and power and water consumption at a scale that is increasingly difficult to permit. Space has unlimited solar power, natural vacuum cooling, and no zoning boards. Musk said in a June 8 video presentation that he expects space to become the lowest-cost location to deploy AI compute within two to three years. Two AI1 prototypes are scheduled to launch in early 2027, with volume production targeted for the end of that year at a new facility called Gigasat.
The real world applications Starmind enables extend well beyond powering Grok. A constellation of orbiting AI processors could run inference workloads for any paying customer, anywhere on Earth, with latency measured in milliseconds rather than the seconds associated with ground-based cloud routing across continents. Starmind, if it scales as described, would make SpaceX the landlord of AI compute the same way Starlink made it the landlord of satellite internet.
SpaceX confirmed today that it has officially signed its third massive compute deal, providing compute at its Colossus data center in Southaven, Mississippi.
Reflection AI will gain immediate access to NVIDIA GB300 chips at SpaceX’s Colossus 2 data center. In return, Reflection will pay SpaceX $150 million per month starting on July 1, with total payments reaching approximately $6.3 billion if the contract runs through its duration, which is until 2029. Either party can terminate the agreement with 90 days’ notice after the initial three-month period.
CNBC first reported the deal.
🚨 SpaceXAI has agreed to a new compute deal with Reflection AI.
Reflection gets access to NIVIDIA GB300s, and will pay $150M per month to SpaceXAI for the compute. pic.twitter.com/bNPare8U5u
— TESLARATI (@Teslarati) June 22, 2026
This latest partnership highlights SpaceX’s strategy of commercializing its massive Colossus supercomputing infrastructure, originally developed to power Elon Musk’s Grok AI models. The company has rapidly expanded its customer base in the AI sector following its February 2026 merger with xAI, a transaction that valued the combined entity at $1.25 trillion.
SpaceX has previously signed significant compute deals with other major players.
It granted Anthropic exclusive access to the full capacity of its Colossus 1 data center, which exceeds 300 megawatts and includes over 220,000 NVIDIA GPUs. Details from SpaceX’s IPO filings indicate Anthropic will pay $1.25 billion per month through May 2029, potentially generating around $45 billion over the term of the deal.
Additionally, Google agreed to pay SpaceX $920 million per month for compute capacity from October 2026 through June 2029. This 32-month period will provide Google access to roughly 110,000 NVIDIA GPUs, along with supporting processors and memory. Capacity ramps up through September at a reduced fee, with termination options after the first year.
SpaceXA also established arrangements for computing power with Cursor, an AI coding startup. SpaceX acquired them in a $60 billion all-stock deal.
These arrangements position SpaceX’s collective position as an AI infrastructure powerhouse with high-margin revenue potential. The Google deal alone could generate nearly $29.5 billion over its term, while the Reflection contract adds another $6.3 billion.
Combined with the Anthropic arrangement, SpaceX stands to realize tens of billions in revenue from compute leasing in the coming years, which diversifies beyond SpaceX’s traditional rocket launches and Starlink operation.
The deals underscore growing demand for advanced AI training and inference capacity amid chip shortages and surging model development needs. Reflection, valued at $25 billion and focused on “American open intelligence” with government and national security ties, cited recent restrictions on closed models as validation for open-source approaches.
For SpaceX, the partnerships transform capital-intensive data centers into flexible revenue sources while supporting its broader AI ambitions after the company has gone public.
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