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SpaceX’s NASA Starship contract safe for now as Blue Origin looks to Congress

SpaceX's NASA HLS contract is safe (for now) but major uncertainty still remains. (SpaceX/NASASpaceflight - bocachicagal)

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Fresh off of a major contract loss during a competition to build NASA’s next crewed Moon lander, Blue Origin has begun aggressively lobbying Congress for the contract NASA didn’t give it.

Thankfully, albeit not at first, a modification has been made to an amendment first proposed by a Senator that has long pursued favorable treatment of Blue Origin that will prevent that legislation – if it passes – from unfairly interrupting the $2.9 billion contract NASA already awarded SpaceX. Announced on April 16th, that award came as a shock, effectively cementing SpaceX’s lunar Starship as both the cheapest and most technically sound proposal to return humanity to the Moon.

As such, although NASA made it clear that it would have selected two of the three competing proposals in a perfect scenario, Congress allocated just a quarter of the Human Landing System (HLS) funding NASA requested, forcing the agency between a rock and a hard place.

NASA repeatedly stated as much both before and after the decision was announced, effectively implying that the agency had learned its lesson with the Commercial Crew Program, in which it had selected two redundant providers – Boeing and SpaceX – only for Congress to systematically underfund the program for years. As a direct result of years of underfunding during an early and formative period, both providers suffered at least 2-3 years of delays, followed by another few years of more organic delays as development matured and new challenges were unsurprisingly uncovered.

Politically, NASA could never say that – effectively biting the hand that (under)feeds – out loud, but it was strongly implied in an official HLS source selection statement released to partially explain why it had chosen SpaceX and SpaceX alone. Almost instantly, both losing competitors – Blue Origin and Dynetics – filed protests with the US Government Accountability Office (GAO) filled with far more bizarre, rambling tangents than coherent legal arguments.

Unless GAO operates on a different standard than the court of law or uncovers something nefarious behind closed doors, a close reading of both partially redacted protests does not bode well for either document’s ability to sway the office’s opinion. Almost as if Blue Origin itself is aware of just how frivolous its protest really is, the company – seemingly backed by partners Northrop Grumman, Lockheed Martin, and Leidos – wasted no time lobbying Senator Maria Cantwell for an alternate avenue to get what it wants and the government money founder Jeff Bezos feels entitled to.

Cantwell represents Washington State, where both Amazon and Blue Origin are headquartered, and has frequently spoken out in support of – or personally introduced – legislation that would specifically favor Bezos’ space company. On May 12th, Cantwell introduced an amendment that would purportedly “maintain competitiveness” by forcing NASA to select a second HLS winner in addition to SpaceX. Without irony, the authorization bill also demanded that NASA make that decision within a mere 30 days.

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Under those conditions, Congress would authorize $10 billion for NASA to develop and demonstrate two landers with an uncrewed and crewed Moon landing each – the original plan. Insultingly, Cantwell tacked that amendment onto an authorization bill, meaning that even if Congress were to pass the bill and the President were to sign it into law, Congress would still have to actually allocate that $10 billion in the form of a more than 10% boost to NASA’s annual budget. Historically, even if Congress were to defy all recent precedent and significantly boost NASA’s 2022 budget, there is no guarantee that that raise would be upheld for four or more years, which it would need to be for the authorization bill to be anything more than a hollow promise.

More recently, a clause was thankfully added clarifying that NASA is not allowed to “modify, terminate, or rescind” SpaceX’s HLS contract to comply with the amendment. Additionally, while still amounting to a legal gun to NASA’s head to force it to into a contract it knows it cant afford, the modification gives NASA 60 days to award a second lander contract. Based on the agency’s own selection statement, Blue Origin’s National Team would almost certainly be the recipient in the event that the bill becomes law, forcing NASA to commit more than $9 billion – instead of $2.9 billion – to the next stage of HLS development with no guarantee that its budget will be raised accordingly.

In the meantime, GAO still has to complete its reviews of Blue Origin and Dynetic’s protests and the White House has to submit its FY2022 budget request and consider adding NASA funding to its proposed jobs and infrastructure package.

Eric Ralph is Teslarati's senior spaceflight reporter and has been covering the industry in some capacity for almost half a decade, largely spurred in 2016 by a trip to Mexico to watch Elon Musk reveal SpaceX's plans for Mars in person. Aside from spreading interest and excitement about spaceflight far and wide, his primary goal is to cover humanity's ongoing efforts to expand beyond Earth to the Moon, Mars, and elsewhere.

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Elon Musk

Elon Musk shuts down talk of TSMC taking over Terafab

Musk says Tesla and SpaceX will build and run Terafab, with TSMC limited to renting.

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SpaceX Terafab rendering

Elon Musk has drawn a firm line around who will be in charge of Terafab, the giant chip factory Tesla and SpaceX are planning in Texas.

Musk replied to a post on X arguing that Taiwan Semiconductor Manufacturing Company (TSMC) would most likely end up owning and operating the plant. “No, we will build and run the fab. Let there be ZERO doubt about that,” Musk wrote. “Maybe TSMC subleases part of the Terafab if they want, but nothing more than that.”

In plain terms, a sublease means TSMC could rent a section of the complex to make chips, similar to a tenant renting one floor of an office tower. The building, the equipment decisions and the daily operation would stay with Tesla and SpaceX.

The comment shuts down speculation that started last week. On October 2, tech journalist Tim Culpan reported that TSMC was exploring ways to help run Terafab’s factories. Musk responded the next day that it was “just discussions, but something may come of it,” as Teslarati reported at the time. That left room for a scenario where the world’s largest contract chipmaker took the wheel. Musk’s latest post closes that door.

Elon Musk teases TSMC as potential Terafab partner

Some background helps explain why this matters. Tesla designs its own AI chips today but pays outside companies like TSMC and Samsung to manufacture them. Musk unveiled Terafab in March as a joint project between Tesla, SpaceX and xAI, arguing that existing suppliers cannot expand fast enough to meet his companies’ future demand. The goal is to produce enough chips each year to supply one terawatt of computing power, roughly 50 times what the entire global AI chip industry produces now.

Those chips are meant for Tesla’s Optimus humanoid robots, the Cybercab and Full Self-Driving computers, along with chips for SpaceX’s planned data centers in orbit. Owning the factory means Musk’s companies would not have to compete with every other chip customer for time on someone else’s production lines.

Intel is still part of the picture. The company signed on in April to help design, build and package chips for the project, and CEO Lip-Bu Tan told Bloomberg this week that Intel will keep working on Terafab despite the TSMC chatter.

The project moved from concept to construction planning over the summer. In August, SpaceX confirmed the Grimes County site about an hour from Houston, sent the county a $10 million payment under its tax abatement deal and said civil work would begin shortly. The first phase carries a $16.8 billion price tag, and total spending across all phases could reach as much as $119 billion.

TSMC chairman C.C. Wei has said a new fab typically takes two to three years to build and another one to two years to reach full output. Tesla and SpaceX have never run one, which is why TSMC’s expertise drew so much attention. Musk’s answer suggests he would rather learn that process in house than hand control of a project this central to Tesla’s robotics and autonomy plans to an outside company.

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Elon Musk

Trump to hand Elon Musk a top honor that traces back to JFK

Trump will award Elon Musk the National Medal of Science at Thursday’s White House summit.

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elon musk and donald trump in front of a tesla cybertruck at the white house

Elon Musk is set to receive the highest honor the U.S. government gives to scientists and engineers.

President Donald Trump will present Musk with the National Medal of Science on Thursday at the White House’s Science: A New Golden Age Summit, Fox News Digital first reported on Wednesday. Google cofounder Sergey Brin, Nvidia CEO Jensen Huang and AMD CEO Lisa Su will receive the same medal, while Dell Technologies CEO Michael Dell and Microsoft CEO Satya Nadella will receive the National Medal of Technology and Innovation. A White House official later confirmed the list to Reuters.

“The Trump administration is grateful for the contributions of these incredible leaders in science and technology. These recipients are helping ensure America keeps leading the world in innovation,” White House spokesperson Liz Huston told Fox News.

It will be the first time Trump has presented either medal in his two terms. Congress created the National Medal of Science in 1959, and the National Science Foundation, which administers it, says 529 scientists and engineers have received it since. A presidential committee reviews nominees, but the president makes the final call.

Thursday’s group of medalists run or founded companies, and three of them sit at the center of the Super Intelligence hardware race that Musk competes in. Huang’s Nvidia supplies the GB300 chips filling SpaceX’s Colossus 2 cluster, while Su’s AMD is Nvidia’s biggest rival in data center GPUs.

Worth noting that Trump’s uncle, MIT physicist John G. Trump, received the National Medal of Science from President Ronald Reagan for his work on ionizing radiation and its uses in medicine and industry.

The Pentagon taps Elon Musk to design the battlefield of the future

For Musk, the medal is the latest sign of how far his relationship with Trump has come since their 2025 split over the “Big Beautiful Bill” and his exit from DOGE. Last week, he sat at Trump’s left during a White House lunch where AI executives signed a voluntary safety accord, and Defense Secretary Pete Hegseth named him to help lead the Pentagon’s Project Meridian study on the future of warfare. Musk has also adopted the administration’s new vocabulary, saying on Sunday that SpaceXAI will be renamed SpaceXSI after Trump ordered federal agencies to replace “artificial intelligence” with “super intelligence.”

Musk has collected science honors before, including the Stephen Hawking Medal for Science Communication in 2019.

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Tesla FSD changed its mind mid-intersection, and it may have saved a life

Tesla shares dashcam footage of FSD Supervised stopping mid intersection to avoid a T-bone crash.

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Credit: @BLKMDL3/X

Tesla is putting another Full Self-Driving save in front of its 24.8 million followers on X.

On Tuesday morning, Tesla’s main account shared a dashcam clip with the caption “FSD Supervised preventing T-bone crash.” The footage came from an owner posting as TheNewGrid, who described what happened at a stop sign: “I looked at the car coming to the stop sign figured they would stop, my car went, then came to a stop mid intersection as they flew by. Had I been manually driving this would have resulted in a crash.”

The sequence is the notable part. FSD had already started crossing when the other driver ran the stop sign. Instead of pressing on, the car braked hard in the middle of the intersection and let the crossing vehicle pass in front of it. By the owner’s own account, they had made the same assumption the software initially made, that the other car would stop, and would not have corrected in time.

The clip is the latest in a run of safety posts Tesla has amplified over the past several days. On Saturday, the company shared a video from Selling Sunset star Jason Oppenheim, who sold his Bentley for a Model Y and said he was buying Teslas with FSD for 10 of his employees. Ashok Elluswamy, who leads Tesla AI, followed up by writing that Tesla self-driving “reacts to other people cutting into your path with super-human response times.” On Monday, a Cybertruck owner posted footage of FSD moving across three lanes from a red light to clear a path for an ambulance approaching from behind.

This recent clip also lands a few weeks after Tesla began shipping Automatic Collision Evasion with FSD v14.3.9, a feature that can activate FSD on the driver’s behalf when a frontal collision is imminent or the driver appears distracted. Elluswamy said in September that “even earlier prediction of hazards, even faster reaction time and overall significantly better safety and collision avoidance” are coming with v15, the release Tesla has tied to round the clock Robotaxi operation.

The safety messaging matters beyond social media. Tesla has said FSD Supervised was 4.1 times less likely to crash than manual driving across 100 million kilometers on European roads, and it has been putting those figures in front of regulators. Eight EU countries have now approved FSD Supervised, with Croatia the most recent, but the EU’s bloc-wide vote originally set for October 6 has been pushed to December at the earliest.

FSD Supervised is still a Level 2 system, and the driver remains responsible at all times. Even heavy users find reasons to step in. Teslarati’s Joey Klender, who uses FSD for about 76 percent of his driving, laid out five recurring issues on Tuesday that still prompt him to intervene. Clips like this one show the other column of that ledger: moments where the software caught a mistake a human was about to make.

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