SpaceX
SpaceX Starlink becomes first US mega-constellation to gain FCC approval
Sans fanfare, the Federal Communications Commission (FCC) has made SpaceX the first US-based entity authorized to launch and operate a massive broadband internet satellite constellation in Low Earth Orbit (LEO).
The Starlink constellation authorization comes a bit less than five weeks after SpaceX launched its first two prototype communications satellites as co-passengers with the Spanish PAZ imaging satellite. CEO Elon Musk confirmed that they had safely made it to orbit and were communication with ground control in Hawthorne, CA, but SpaceX’s lips have remained sealed beyond Musk’s brief mention.
First two Starlink demo satellites, called Tintin A & B, deployed and communicating to Earth stations pic.twitter.com/TfI53wHEtz
— Elon Musk (@elonmusk) February 22, 2018
Unofficially, sources in the loop were told that Musk forwarded a memo to all hands soon after launch, confirming that the Starlink prototypes had successfully sent their “Hello, world” message to ground control. In the month since launch, the Tintin twins appear to have both raised their orbits slightly, suggesting that their propulsion systems were/are at least partially functional. Per FCC licenses for the experimental satellites, the Tintins are expected to eventually raise their orbits from 500km to approximately 1100km over the course of testing, maneuvering that would require their SpaceX-designed ion propulsion modules to function properly.
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- SpaceX’s first Starlink prototypes launched in late February aboard a flight-proven Falcon 9 booster. (Pauline Acalin)
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- SpaceX’s Starlink satellite constellation efforts could provide the company with valuable experience that can be applied around Mars. (unofficial logo by Eric Ralph)
Gwynne Shotwell, COO of SpaceX, gave an official statement on the FCC’s authorization of Starlink, reiterating the company’s awareness of a huge amount of work ahead of any operational constellation.
“We appreciate the FCC’s thorough review and approval of SpaceX’s constellation license. Although we still have much to do with this complex undertaking, this is an important step toward SpaceX building a next-generation satellite network that can link the globe with reliable and affordable broadband service, especially reaching those who are not yet connected.”
As the SpaceX’s first foray into true electric propulsion and dedicated communications satellites, not to mention an array of cutting-edge technologies (optical/laser-based interlinks, advanced antenna tech, and more) presumed to be on board, it’s fair to assume that the public silence is indicative of a heads-down work ethic while Starlink engineers and technicians get a handle on the tasks before them and learn volumes about the manufacture and operation of advanced satellites. If they were to occur, failures or serious problems with these first two prototypes would, in fact, benefit SpaceX and strengthen all future prototype testing efforts, ultimately resulting in a more successful final product and happier customers in the long term.
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SpaceX’s first two Starlink prototype satellites are pictured here before their inaugural launch, showing off a thoroughly utilitarian bus and several advanced components. (SpaceX)
Although the FCC’s approval carries with it a number of conditional requirements of SpaceX, it is all but guaranteed that SpaceX will be able to satisfy those conditions and ensure that Starlink remains authorized, barring any significant and unforeseen legal challenges. Of those conditions, the most significant condition of note relates to a request for additional information from SpaceX on the company’s end-of-life and deorbit practices in order to guarantee that the constellation’s 4,000+ satellites do not become a space debris risk. The most serious threat to Starlink as it stands proposed today is the FCC’s decision to deny SpaceX a waiver for the requirement that 50% of any given LEO internet constellation must be launched six years after approval. In the case of the 4400+ satellite Starlink constellation, this would require SpaceX to launch more than 30 satellites a month for every month between now and March of 2024. Thankfully, the FCC approval acknowledges that it will reconsider SpaceX’s request for a waiver of this requirement in the future, once the design of Starlink has been finalized.
Correction: While the FCC’s final license grant appeared to deny a waiver requested by SpaceX for the requirement of launching 50% of the constellation within six years of licensing, the FCC has in fact already reconsidered this requirement [PDF] for uniquely large constellations out of its sheer impracticality. SpaceX should thus have some added flexibility in the pace of its deployment of Starlink.
Limited internet service from SpaceX’s Starlink constellation is not expected to begin before 2020 at the earliest. The FCC’s announcement can be read in the news release here [PDF] or in the full application approval here [PDF].
https://www.youtube.com/watch?v=v5-WCwZ4cSE
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Investor's Corner
SpaceX and Nvidia team up on Musk’s orbital AI bet
SpaceX revealed a new Nvidia satellite partnership, then Musk pledged an exclusive Nvidia hardware commitment.
SpaceX and Nvidia are now working together on the hardware that will power Musk’s orbital data center ambitions. SpaceX announced on X on Tuesday that it is partnering with Nvidia to design the compute payload for Starmind AI1, the first satellite in a planned constellation built to run AI workloads directly in orbit. Each Starmind satellite will carry Nvidia’s Rubin GPUs and Vera CPUs, according to the post, which included renderings of the payload design.
The announcement landed hours before SpaceX’s first earnings call as a public company, where Musk went further, saying the company has committed to building its AI infrastructure exclusively on Nvidia hardware. “We think the Vera Rubin architecture is the best architecture. We think it’s the best AI computer, and we greatly value our close cooperation and partnership on many levels with Nvidia,” Musk told investors on the call,. “So we’re exclusive to Nvidia.”
Musk said SpaceX plans to deploy Nvidia’s Vera Rubin NVL72 rackscale system, codenamed Kyber, both on the ground and in space. He set a target of 2 gigawatts of compute capacity online by the end of this year, scaling to roughly 10 gigawatts by the end of 2027.
SpaceX’s newest Starmind will make earth data centers obsolete
Starmind has been in development since Musk confirmed the name in June, following an xAI trademark filing that tipped off the project before SpaceX made it official. The idea is massive in scope and instead of moving data down to ground based servers, satellites equipped with onboard processors and large solar arrays would compute AI workloads in orbit and beam results back to Earth. SpaceX has already filed with the FCC for a constellation of up to one million satellites to support the effort, citing constant solar power and the absence of zoning restrictions as advantages over terrestrial data centers.
The Nvidia exclusivity marks a shift in tone from just two weeks ago, when Musk was busy knocking down a report that SpaceX had ordered $52 billion worth of Nvidia GPUs through Foxconn, calling it fake news at the time. The dollar figure in that rumor may have been wrong, but the underlying direction seems correct. SpaceX’s AI division already leases Colossus compute capacity to Anthropic and Google, and Tuesday’s earnings report showed AI revenue climbing sharply as those deals ramp up.
Nvidia shares rose roughly 3% in Tuesday trading on the news, while SpaceX stock climbed nearly 9% during the day before giving back gains after hours as investors digested the earnings report’s capital spending figures.
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SpaceX (NASDAQ: SPCX) reported a beat in revenues and EBITDA in its first earnings call report while also minimizing losses as its business continues to gain momentum.
After its IPO in July, SpaceX saw some tough losses on Wall Street due to a major selloff after a delay in its 13th Starship test flight. The ship launched later that week and completed what was arguably the most successful IFT operation in the Starship program’s history.
Nevertheless, the company is continuing on and reported some encouraging financials while also promoting what appears to be a robust outlook moving forward in its Space, AI, and Connectivity divisions.
SpaceX to report first-ever earnings today: here’s what to expect
Earnings Results
- Revenues: $7.8 billion reported vs. $6.7 billion expected
- Adjusted EBITDA: $3.5 billion vs. $2 billion expected
- Net loss of $541 million, an improvement of $467 million from net loss of $1.0 billion
Additionally, CFO Bret Johnsen had these comments:
“2026 has been a momentous year so far, and the second quarter demonstrated the true power of SpaceX. Revenue growth accelerated across all our business segments and we delivered strong operating leverage, with significant margin expansion led by our new AI compute agreements. Our unparalleled leadership in launch, Starlink subscriber growth, new enterprise and government partnerships, and best-in-class AI infrastructure underscore our ability to drive meaningful scale and deliver attractive returns. As a newly public company, we are delighted to welcome our broad base of shareholders and bondholders. We ended the second quarter with $100 billion of cash, cash equivalents, and marketable securities, and $47.5 billion in backlog. This financial strength gives us substantial capacity to invest in Starship, Starlink Broadband and Mobile satellites, and our AI platform, while maintaining a disciplined long-term capital allocation framework.”
Space Business Highlights
SpaceX shared some of its biggest Space Business Highlights for Q2:
- Space revenues grew 55% sequentially and 29% year-over-year to $962 million, driven by a higher number of large customer launches and a favorable customer shift compared to the prior year
- Total costs and expenses for the Space segment were up by $389 million year-over-year, as we continued to accelerate R&D investments in our Starship program, which we believe will reduce the cost to orbit by 99% or more relative to the historical average, and unlock significant revenue potential across all business segments
- Leading launch provider for the world with 78 launches and 1,041 metric tons of mass to orbit deployed over the six months ended June 30, 2026, primarily allocated to Connectivity for the deployment of our Starlink constellation
- Starship V3 development continued to advance towards full and rapid reusability:
- Completed Starship V3’s first suborbital mission in May, Flight 12, which achieved a successful lift off from our new Starbase pad, a precision landing of Starship’s upper stage, and deployment of modified V2 Starlink satellites
- Subsequent to the second quarter, completed Starship Flight 13 in July, which achieved all flight objectives including deploying 20 production V3 satellites, demonstrating in-space relight of a Raptor engine, and executing the softest ever splashdown of Starship, providing critical views of an intact heatshield
SpaceX will report its earnings today at 4:30 P.M. EDT.
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Elon Musk issued a second pointed warning to SpaceX short sellers on Tuesday, just hours before the company was set to release its first quarterly earnings as a publicly traded firm. Responding to a report highlighting elevated short interest, Musk wrote on X: “I try to warn them, but they just double down …”
The comment came as data from S3 Partners showed roughly 95 percent of available SPCX shares to borrow were on loan, translating to about 34 percent short interest as a percentage of the float. The stock has traded under pressure since its record-breaking IPO in June 2026, declining significantly from early peaks.
I try to warn them, but they just double down … 🤷♂️
— Elon Musk (@elonmusk) August 4, 2026
This marks the second such message from Musk in under three weeks.
On July 17, amid post-IPO volatility, he stated: “The survival probability of firms who maintain a significant short position in SpaceX over time is very low.” At that time, SPCX had fallen roughly 30 percent from its peak above a $2.6 trillion valuation, with short sellers reportedly realizing gains of about $8.7 billion.
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Musk’s warning aligned with optimistic analyses projecting that Starship-driven cost reductions could enable a multi-trillion-dollar space economy through applications such as orbital solar power, asteroid mining, data centers, and Mars-related projects, positioning SpaceX as critical infrastructure.
SpaceX is scheduled to report second-quarter results after the market close later today, followed by a webcast. Analysts anticipate revenue near $6.9 billion, reflecting growth in Starlink, launch services, and AI-related segments. The earnings release precedes a major lockup expiration on August 6 that could free hundreds of millions of insider shares.
Musk has a long track record of confronting short sellers, particularly regarding Tesla, where he has argued that persistent bearish positions underestimate transformative technologies. Critics view his optimism as overly ambitious given near-term stock fluctuations, while supporters see temporary dips as opportunities in a longer-term expansion of the space economy.
As SpaceX opens its books to public scrutiny for the first time, the high short interest and Musk’s repeated cautions set the stage for heightened market attention on the results and management’s commentary.
SpaceX and Nvidia team up on Musk’s orbital AI bet
SpaceX reports beat in first earnings while minimizing losses
