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.
The Ontario Teachers’ Pension Plan (OTPP) stands to reap one of the most extraordinary returns in pension fund history thanks to a bold 2019 investment in SpaceX.
According to a recent report from The Globe and Mail, the Toronto-based fund invested roughly $300 million CAD (~$220 million USD at the time) in Elon Musk’s space company as its inaugural deal through the Teachers’ Innovation Platform.
At SpaceX’s anticipated $1.75 trillion IPO valuation, set for a mid-June debut on Nasdaq under ticker $SPCX, that stake could now be worth up to $11.6 billion USD. This would represent a roughly 50x return and easily become OTPP’s most successful single investment ever.
The fund manages $279 billion in assets for approximately 346,000 working and retired teachers in Ontario, potentially delivering an average boost of around $33,500 per member if fully realized.
SpaceX has filed its S-1 and plans to price shares at $135 each, aiming to raise a record $75 billion in what would be the largest IPO in history, surpassing Saudi Aramco. The company reported $18.67 billion in revenue for 2025, driven primarily by Starlink satellite internet growth and NASA contracts, though it continues to post significant losses tied to ambitious R&D in Starship and AI initiatives.
Important pieces moving forward include:
- Starlink Expansion: The satellite broadband service is scaling rapidly, targeting global connectivity, especially in underserved rural and remote areas. This segment offers massive recurring revenue potential as numbers climb.
- Starship and Reusability Leadership: SpaceX’s fully reusable Starship aims to slash launch costs dramatically, enabling frequent missions, Mars ambitions, and lucrative government/defense contracts. Success here could unlock exponential growth.
- AI and Diversification: Recent moves, including ties to xAI, position SpaceX in high-growth AI infrastructure, broadening beyond traditional aerospace.
- Validation Scrutiny: While the $1.75 trillion target excites investors, analysts like Morningstar value the company closer to $780 billion, citing high multiples (around 90x trailing revenue) and execution risks. A 180-day lockup period will prevent early investors like OTPP from selling immediately post-IPO.
The irony has not been lost on observers. Ontario’s government previously canceled a Starlink rural internet contract amid political tensions involving Musk, yet the pension fund’s savvy investment, made when SpaceX was valued around $33-36 billion, and Starlink was nascent, delivers outsized gains independent of politics.
For OTPP, this windfall strengthens its already solid 111 percent funding ratio and underscores the value of patient, innovation-focused capital allocation.
For SpaceX, the IPO marks a new chapter: greater transparency, access to public markets for talent retention and growth capital, and heightened pressure to deliver on its multi-planetary vision.
All eyes are fixed on whether SpaceX can justify its lofty valuation through sustained execution. For Ontario teachers, the returns are already stellar, but SpaceX, like other Musk companies in the past, has plenty of things to prove. Perhaps the most ideal person for the job is at the helm, hoping to bring the company to a massive valuation.
Elon Musk has firmly denied recent media reports suggesting that SpaceX has reduced its target valuation for an upcoming initial public offering.
The denial came directly from the SpaceX and Tesla frontman on his social media platform X, where he responded with a single word, “False,” to a post from ZeroHedge that cited Bloomberg sources.
This swift rebuttal underscores Musk’s ongoing effort to manage speculation surrounding one of the most anticipated market debuts in recent history.
False
— Elon Musk (@elonmusk) May 29, 2026
According to the disputed reports, SpaceX had lowered its IPO valuation goal to at least $1.8 trillion from previous ambitions exceeding $2 trillion.
The claims emerged amid growing anticipation for the company’s confidential S-1 filing, which positions it for a potential public listing as early as June.
Some had pointed to strong revenue growth, particularly from the Starlink satellite internet service, which contributed heavily to the firm’s 2025 figures of $18.7 billion. Yet challenges persist in other areas, including substantial investments and losses tied to ambitious projects like Starship development and artificial intelligence initiatives, which plan to make life multiplanetary eventually.
Musk’s response highlights a pattern in which he actively counters what he views as inaccurate portrayals of his companies’ trajectories.
SpaceX, already valued privately at extraordinary levels, stands as a cornerstone of Musk’s empire alongside Tesla and xAI. The entrepreneur has long emphasized the transformative potential of reusable rockets and global broadband access, factors that fuel investor enthusiasm despite operational hurdles.
By rejecting the valuation downgrade narrative, Musk signals confidence in SpaceX’s fundamentals and its readiness for public markets on terms favorable to its long-term vision. People have been waiting a very long time to invest in SpaceX, and the valuation, as well as the introductory share price, is not going to need adjusting.
They’ll have plenty of suitors.
This episode reflects broader dynamics in the technology sector, where rumors often swirl around high-profile entities. Musk’s direct engagement with media narratives serves to maintain transparency and control the narrative around his ventures.
As SpaceX prepares for greater scrutiny in public markets, the founder’s denial reinforces optimism about its prospects. Supporters argue that the company’s innovative edge positions it for enduring success, far beyond short-term valuation debates. With the denial now public, attention turns to forthcoming regulatory filings that could provide clearer insights into SpaceX’s strategy and financial health.
The coming weeks promise to reveal more about how SpaceX will transition into a publicly traded powerhouse.
Elon Musk
SpaceX to become America’s Military data backbone for missiles, drones, and warfighters
The Space Force just handed SpaceX $2.29 billion to build the military’s space internet backbone.
The U.S. Space Force awarded SpaceX a $2.29 billion contract on May 26, 2026 to build the backbone of its Space Data Network, a satellite-based communications system designed to keep American military forces connected anywhere on Earth in real time. The contract is firm-fixed-price and requires SpaceX to deliver a fully operational prototype by the end of 2027.
In plain terms, the SDN Backbone is the plumbing behind the military’s space-based internet. It functions as a low Earth orbit satellite constellation providing robust, high-capacity, and low-latency data transport for the Joint Force, connecting sensors and weapons systems continuously, globally, and securely. Think of it as a private, hardened version of Starlink built specifically for battlefield communications, one that soldiers, ships, and aircraft can rely on even in contested environments where ground-based networks have been disrupted.
SpaceX is quietly becoming the U.S. Military’s only reliable rocket
The Space Force was direct about why SpaceX was selected. “The SDN Backbone leverages the best of commercial innovation and delivers a strong foundation for the SDN mission set — a huge benefit and enabler for our warfighters,” said USSF Col. Ryan Frazier.
“We aren’t trading speed for scale; we are demanding both. By using rapid prototyping and Other Transaction Authorities, we are ensuring our advanced solutions are integrated and delivered to the warfighter as fast as possible,” added USSF Lt. Col. Fry, SDN Backbone system program manager.
The SDN Backbone will work alongside the Space Development Agency’s Transport Layer, with the two systems forming a unified open architecture to provide critical data transport for current and future Department of War missions.
As Teslarati has reported, this is not SpaceX’s first Space Force contract of 2026. In April, the Space Force awarded SpaceX $178.5 million to launch missile tracking satellites, and SpaceX is already embedded in the Golden Dome missile defense software group. The $2.29 billion SDN Backbone award puts SpaceX at the center of how the American military communicates in space, a position with direct implications for its reported $1.75 trillion IPO valuation as the company heads toward a public offering as early as June 2026.
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