SpaceX
SpaceX begins static Starhopper tests as Raptor engine arrives on schedule
SpaceX has officially begun static ground testing of Starhopper, a full-scale pathfinder Starship prototype meant to support an early series of Raptor-powered hop tests at SpaceX’s South Texas launch site. Simultaneously, the second completed Raptor engine arrived at the site on Monday, March 11th, confirming CEO Elon Musk’s March 8th tweets about the delivery.
While reasonably routine for any rocket test program, the first tanking test of Starhopper effectively marks the first time that SpaceX has begun tests with a more or less fully integrated Starship (previously BFS). Likely performed with liquid nitrogen instead of liquid oxygen/methane, the first few tanking tests will be used to determine the quality of the prototype’s stainless steel tanks – built en
In November 2016, SpaceX began propellant-loading tests of its first finished full-scale Starship (then Big Falcon Spaceship) hardware, a massive carbon composite liquid oxygen tank stretching 12 m (~40 ft) in diameter. Over the course of 2017, SpaceX transitioned from liquid nitrogen to liquid oxygen and ultimately conducted one final burst-test in which the composite tank was pressurized until it exploded, ending full-scale BFR composite testing with a bang. Within 6-12 months, Musk had come to the conclusion that a stainless steel BFR would ultimately be a superior path forward for the rocket and spaceship and attempted (apparently successfully) to get his team of R&D engineers on board with such a radical change so late in the development phase.
Despite the fact that that radical design departure may have occurred as few as 6-8 months ago, SpaceX engineers and technicians have accomplished an extremely rapid development program that will – in part – culminate in the hopefully successful hop testing of Starhopper, the first Starship prototype. While more of a rough testbed than an actual representation of the hardware and structures that will be required for a reusable orbital-class Starship, Starhopper has at least acted as a crash course (either technically or organizationally) on fabricating and assembling stainless steel aerospace structures, a material largely foreign to SpaceX flight hardware prior to late 2018.
Although the early vehicle was less than encouraging, as was the demise of its nosecone as a consequence of improper planning and/or bad workmanship, Starhopper as it now stands might actually be flightworthy in the context of suborbital, subsonic hop tests. Powered by the same or similar Raptors that would power orbital prototypes, Starhopper’s hop tests would optimally provide a wealth of experience and engineering data for both building 9 meter/30 foot-diameter stainless steel rocket sections and operating full-scale Raptor engine(s) in actual flight configurations. Extensive testing with Raptor will help to ensure that the fit and finish of the new engine’s flight-grade avionics and hardware are up to the challenge of safe, reliable, and gentle operations for a nominally crew-rated launch vehicle and spacecraft.
Around two days after Starhopper was briskly transported from its build site to SpaceX’s brand new launch facility, local Twitter account @SPadre (short for South Padre Island) posted a video of tanking test that occurred on March 11th, capturing the sound of venting as the liquid involved turned to gas inside its propellant tank(s). The fact alone that the person behind the camera was allowed to be where they were during the test all but guarantees that this first test was performed with an inert liquid, most likely liquid nitrogen given a massive delivery that occurred the day before (March 10th). In no conceivable world would SpaceX or local law enforcement willingly allow for Starhopper to be loaded – for the first time ever – with even a partial load of liquid methane or liquid oxygen with bystanders barely a few hundred feet distant.
When SpaceX gets to the point that they are confident enough in the structural integrity of Starhopper to begin wet dress rehearsals and tests with actual propellant, it’s a safe bet that the company will cooperate with local law enforcement to block off the lone access road to a distance of at least 1-2 miles, if not more. It’s unclear if local homeowners and residents will be forced to vacate the adjacent Boca Chica Village during testing, but chances are good that nobody will be within several thousand feet of Starhopper when those propellant loading tests begin, let alone actual static fire activity once Raptor(s) are installed.
According to an official SpaceX statement on the progress, propellant load tests and static fires could begin “in the days ahead”, although the spokesperson was under the impression that those tests – as well as initial hop tests – “[would] not be visible from offsite”. Unless SpaceX plans to draw a keep-out zone with a radius of multiple miles, interested observers will almost certainly be able to get close enough to at least catch a glimpse of Starhopper, but the statement still offers an idea of just how focused the company will be on safety during these early tests.
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Elon Musk
Elon Musk’s TERAFAB project: Everything you need to know
The CEO has hinted heavily for several quarters that it would probably need to produce its own computing power to stay up to speed on the demand it is facing for its projects. It is now taking matters into its own hands.
On Sunday, Elon Musk formally made TERAFAB official—a groundbreaking $20-25 billion joint venture uniting Tesla, SpaceX, and xAI, three of the world’s richest man’s most significant and powerful ventures.
Musk described the project as “the most epic chip building exercise in history by far.”
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
The initiative aims to produce over one terawatt of AI compute annually, dwarfing the global industry’s current output of roughly 20 gigawatts per year. Musk framed the effort as “the next step towards becoming a galactic civilization,” positioning it as essential for scaling humanity into a multi-planetary species.
The Need for TERAFAB
Existing chip suppliers such as TSMC, Samsung, and Micron cannot expand quickly enough to meet the explosive demand for AI hardware.
We’re building TERAFAB to close the gap between today’s chip production & the future’s demand – a future among the stars.
Join us → https://t.co/512DIlqNgY pic.twitter.com/ATr0e0pRDJ
— SpaceX (@SpaceX) March 22, 2026
Musk explained the situation clearly:
“We’re very grateful to our existing supply chain… but there’s a maximum rate at which they’re comfortable expanding. We either build the Terafab or we don’t have the chips, and we need the chips, so we build the Terafab.”
The CEO has hinted heavily for several quarters that it would probably need to produce its own computing power to stay up to speed on the demand it is facing for its projects. It is now taking matters into its own hands.
Chip Types and Production Goals
The facility will manufacture two specialized chip families, according to the presentation:
- Edge-inference AI5 and AI6 processors optimized for Tesla’s Optimus humanoid robots and Full Self-Driving systems in vehicles and Robotaxis
- High-power D3 chips hardened for space environments
Musk outlined annual output targets, which are between 100 and 200 gigawatts of terrestrial compute for robotics, supporting Musk’s vision of producing 1-10 billion Optimus units per year, and the majority (80%) of chips dedicated to orbital AI data centers. Overall, TERAFAB aims to produce 100-200 billion custom AI and memory chips each year.
Scale and Strategy
The size of the TERAFAB project will be remarkable, as Musk indicated after the presentation that the entire Gigafactory Texas campus would not be large enough to fit the needs of the project. In fact, Musk said it would be around 100 million square feet in size, the equivalent of 15 Pentagons or three Central Parks.
Yes, the one in New York City.
Construction will begin with an “advanced technology fab” on the Giga Texas campus in Austin, enabling rapid iteration: design a chip, fabricate lithography masks, produce and test wafers, all within days.
However, the full-scale TERAFAB requires thousands of acres and over 10 gigawatts of power, far exceeding what Giga Texas can accommodate. Musk stated:
“We couldn’t possibly fit the Terafab on the GigaTexas campus. It will be far bigger than everything else combined there.”
Multiple large sites are currently under consideration, but this will need a sprawling land mass to get started.
The sheer scale of TERAFAB is going to be insane.
Elon said it wouldn’t be suitable for anywhere on Giga Texas property because it’s too big:“We couldn’t possibly fit the Terafab on the GigaTexas campus. It will be far bigger than everything else combined there.
Several… pic.twitter.com/79GbhNNuf4
— TESLARATI (@Teslarati) March 23, 2026
Key Applications
TERAFAB will be a crucial part of the development of some of Tesla’s most valuable projects, including Optimus and data center development, especially from an orbital standpoint. For that reason, we will break this down into Terrestrial and Orbital applications:
- Terrestrial: Powers autonomous vehicle fleets and billions of Optimus robots performing physical labor
- Orbital: Starship will launch massive AI satellite constellations, starting with 100-kilowatt “Mini” units, and scaling to larger Megawatt models, creating the world’s largest data center in low-Earth orbit.
Space-based advantages include five times greater solar irradiance, efficient vacuum heat rejection, and freedom from terrestrial grid constraints (U.S. electricity generation totals just 0.5 terawatts). Musk emphasized the principle:
“Quantity has a quality all its own.”
We wrote about SpaceX’s recent filing with the FCC for 1 million orbital data center plans.
Strategic Vision
TERAFAB represents vertical integration at an unprecedented scale, combining AI hardware, robotics, and orbital infrastructure.
Musk described the project as “the final missing piece of the puzzle.” With production ramping toward 2027, TERAFAB is set to accelerate an era of abundance, transforming science fiction into reality and positioning Musk’s companies at the forefront of galactic-scale innovation.
Elon Musk
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
Tesla, SpaceX, and xAI unveiled TERAFAB, a $25B chip factory targeting one terawatt of AI compute annually.
Elon Musk took the stage over the weekend at the defunct Seaholm Power Plant in Austin, Texas, to officially unveil TERAFAB, a $20-25 billion joint venture between Tesla, SpaceX, and xAI that he described as “the most epic chip building exercise in history by far.” The announcement marks the most ambitious infrastructure bet Musk has made since Gigafactory 1 in Sparks, Nevada, and it fuses three of his companies into a single, vertically integrated AI hardware machine for the first time.
TERAFAB is designed to consolidate every stage of semiconductor production under one roof, including chip design, lithography, fabrication, memory production, advanced packaging, and testing. At full capacity, the facility would scale to roughly 70% of the global output from the current world’s largest semiconductor foundry from Taiwan Semiconductor Manufacturing Company (TSMC).
Elon Musk’s stated goal is one terawatt of computing power annually, split between Tesla’s AI5 inference chips for vehicles and Optimus robots, and D3 chips built specifically for SpaceXAI’s orbital satellite constellation.
Tesla Terafab set for launch: Inside the $20B AI chip factory that will reshape the auto industry
The logic behind the merger of these three entities is rooted in a supply chain crisis Musk has been signaling for over a year. At Tesla’s Q4 2025 earnings call, he warned investors that external chip capacity from TSMC, Samsung, and Micron would hit a ceiling within three to four years. “We’re very grateful to our existing supply chain, to Samsung, TSMC, Micron and others,” Musk acknowledged at the Terafab event, “but there’s a maximum rate at which they’re comfortable expanding.” Building in-house was, in his framing, not a strategic option, but a necessity.
The space angle is where the announcement becomes genuinely unprecedented. Musk said 80% of Terafab’s compute output would be directed toward space-based orbital AI satellites, arguing that solar irradiance in space is roughly 5x greater than at Earth’s surface, and that heat rejection in vacuum makes thermal scaling viable. This directly feeds the SpaceXAI vision, which is betting that within two to three years, running AI workloads in orbit will be cheaper than doing so on the ground. The satellites, powered by constant solar energy, would effectively turn low Earth orbit into the world’s largest data center.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
Historically, this announcement threads together every major Musk initiative of the past two years: the xAI-SpaceX merger, Tesla’s $2.9 billion solar equipment talks with Chinese suppliers, the 100 GW domestic solar manufacturing push, the Optimus humanoid robot program, and Starship’s development. TERAFAB is the capstone that ties them into a single coherent architecture — chips made on Earth, launched by SpaceX, powered by Tesla solar, run by xAI, and ultimately extended to the Moon.
“I want us to live long enough to see the mass driver on the moon, because that’s going to be incredibly epic,”Musk said during the presentation.
Announcing TERAFAB: the next step towards becoming a galactic civilization https://t.co/IDKey07mJa
— Tesla (@Tesla) March 22, 2026
Elon Musk
SpaceX is quietly becoming the U.S. Military’s only reliable rocket
Space Force drops ULA for SpaceX on GPS launch after Vulcan rocket anomaly investigation halts flights.
The U.S. Space Force announced today it is switching an upcoming GPS III satellite launch from United Launch Alliance’s Vulcan rocket to a SpaceX Falcon 9, a move that is as much a reflection of Vulcan’s mounting problems as it is a validation of SpaceX’s growing dominance in national security space launch. The GPS III Space Vehicle 09, originally contracted to fly on Vulcan this month, will now target a late April liftoff on Falcon 9, marking the fourth consecutive GPS III satellite the Space Force has moved to SpaceX after contracts were originally awarded to ULA.
The immediate trigger is a solid rocket motor anomaly that occurred on February 12 during Vulcan’s USSF-87 mission. Although the payloads reached orbit and ULA declared the mission successful, the company characterized the malfunction as a “significant performance anomaly” and has since paused all military launches on Vulcan pending a root cause investigation.
“With this change, we are answering the call for rapid delivery of advanced GPS capability while the Vulcan anomaly investigation continues,” said Systems Delta 81 Commander Col. Ryan Hiserote. “We are once again demonstrating our team’s flexibility and are fully committed to leverage all options available for responsive and reliable launch for the Nation.”
The broader reality is that SpaceX’s reliability record and launch cadence have made it the path of least resistance for the Pentagon, and bodes well with Elon Musk’s plans to IPO SpaceX sometime this year. Its Falcon 9 is the most flight-proven rocket in history, and the Space Force’s Rapid Response Trailblazer program was specifically designed to enable exactly this kind of provider swap for GPS missions, and effectively building SpaceX’s flexibility into the national security launch architecture by design.
For ULA, the stakes are existential. The company entered 2026 with aspirations of finally turning a corner after years of Vulcan delays, with interim CEO John Elbon pointing to a backlog of over 80 missions as reason for optimism. Meanwhile, SpaceX’s contracts with the Space Force have given it a formal pathway to take on even more national security launches going forward.
The significance of today’s announcement extends beyond one satellite swap. It reinforces that America’s most critical space infrastructure, including GPS, missile warning, and beyond, is increasingly dependent on a single commercial provider.
Tesla launches first ‘true’ East Coast V4 Supercharger: here’s what that means
Tesla reveals various improvements to the Semi in new piece with Jay Leno
