News
SpaceX Starlink partners with Microsoft Azure to deploy cloud computing anywhere
Microsoft Azure has announced a partnership with SpaceX that will give customers the ability to both access and deploy cloud computing capabilities anywhere on Earth with the help of Starlink internet.
Ultimately designed with anywhere from ~4,400 to ~40,000 operational satellites in mind, SpaceX’s Starlink constellation aims to connect users to the internet where existing access is either too expensive, limited, or completely unavailable. Of course, however, connecting the world’s unconnected is an immense and challenging aspiration – one that is unlikely to be one of the Starlink constellation’s first major uses.
As CEO Elon Musk has been keen to regularly note, the real challenge of SpaceX’s Starlink satellite internet project is ultimately ensuring that the constellation doesn’t join the graveyard of bankrupt companies that came before it. For better or worse, that will necessitate close relationships with as many premium enterprise-class customers as possible. With its estimated 2020 market cap of ~$370 billion expected to grow to ~$800 billion or more by 2025, cloud computing is one such potentially lucrative application.
To better exploit the benefits offered by the kind of blanket connectivity Starlink may soon offer, Microsoft has developed its own Azure Modular Datacenter (MDC), essentially a data center built into a mobile, satellite-connected shipping container. Customers can choose to either use the MDC as a wholly independent datacenter or connect it to one or more satellite constellations, Starlink included. With what a SpaceX executive recently described as dual parabolic antennas, an MDC could likely have access to gigabit-class internet connectivity with latency comparable to fiber anywhere on Earth.
According to Microsoft, possible scenarios where an MDC would be valuable include “mobile command centers, humanitarian assistance, military mission needs, mineral exploration, and other use cases requiring high intensity, secure computing.” Several Azure Mobile Datacenters have already been deployed and are being trialed by private sector companies and the US military.
Likely less than coincidental, Microsoft Azure’s Starlink partnership comes around the same time as Amazon has begun to peel back the curtains on Project Kuiper, a low Earth orbit (LEO) satellite internet constellation almost indistinguishable from Starlink. Lead and largely staffed by former Starlink executives and employees, Project Kuiper aims to deploy a constellation of ~3200 small, interlinked communications satellites – a goal Amazon has pledged at least $10 billion to achieve.
Somewhat unsurprisingly, Kuiper – lead by executives SpaceX CEO Elon Musk personally fired in 2019 for moving too slowly – has no set schedule or indication of early prototype development and is effectively 3-5 years behind SpaceX, OneWeb, and other prospective constellation operators from the get-go.
An IEEE Spectrum article offers an excellent summary of the web services. logistics, and online shopping giant’s most likely motivation behind investing so much money in a satellite constellation that is – at best – years behind.
“‘With Amazon, it’s a whole different ballgame,’ says Zac Manchester, an assistant professor of aeronautics and astronautics at Stanford University. ‘The thing that makes Amazon different from SpaceX and OneWeb is they have so much other stuff going for them.’ If Kuiper succeeds, Amazon can not only offer global satellite broadband access—it can include that access as part of its Amazon Web Services (AWS), which already offers resources for cloud computing, machine learning, data analytics, and more.”
Michael Koziol – IEEE Spectrum – 17 August 2020
In other words, Amazon likely believes that its potential advantages are so strong and so unmatched that it doesn’t matter if it’s years late to the party. On the other hand, it could also be the case that Amazon – and Amazon Web Services in particular – perceives a lack of the capabilities offered by a high-bandwidth satellite internet constellation to be such an existential threat that the company has no choice but to try to enter the fray.
As such, SpaceX’s partnership with Microsoft Azure Cloud Services is a direct shot across Amazon’s bow, demonstrating that even if Project Kuiper manages to begin operational satellite launches in just a year or two, the company will immediately face experienced, organized competition. There is some level of irony in the fact that, purely out of corporate spite, Amazon will now likely never become a Starlink customer to avoid helping a direct competitor, meaning that AWS will be consciously putting itself at a competitive disadvantage for years to come by waiting for Project Kuiper.
Tesla (NASDAQ: TSLA) will report its earnings for the second quarter of 2026 this evening after market close, and investors and analysts are waiting anxiously to see what the company will report for the second three-month span of the year.
Analysts have already put out their expectations from a financial standpoint for the company’s second quarter, but what’s unknown is what Tesla plans to discuss during the call.
Financial Expectations
Wall Street consensus expectations put Tesla’s Earnings Per Share (EPS) at $0.53, while revenues are expected to come in around $26.4 billion.
This would compare to an EPS of $0.39 and $22.19 billion compared to Tesla’s Q2 2025. Last quarter, EPS came in at $0.41 on $22.387 billion of revenue. Additionally in Q1, Tesla beat analyst expectations, but shares dropped over 3 percent the following trading day.
What We Expect
In terms of discussions, Tesla earnings are pretty sporadic and depend on a handful of things, including current events, investor questions, and more.
Tesla uses a platform called Say to field questions from investors and analysts. These questions are what will be used during the call. Here are the top 5 from the Retail side and top 3 from the Institutional side:
Retail:
“Tesla has missed short-term guidance on robotaxi 3 earnings reports in a row, from 50% coverage of USA by end of 2025 to most recently 7 new cities in 1H26. What is keeping Tesla back from accomplishing these short term goals that they’ve set for themselves?”
“What are the main constraints to expanding robotaxi operations faster, and how do you see that lining up with Cybercab production?”
“What’s the current status of Optimus Gen 3 production ramp, initial deployment in factories, and external sales timeline/volume for 2027? What tasks can we expect the Optimus to perform by end of 2027?”
“To reward long-term Tesla retail shareholders for their loyalty, can you commit to achieving at least half of the goals outlined in your 2025 compensation plan before considering any offers to acquire or merge Tesla?”
“Why has growth of robotaxi vehicles stalled? When will we see cybercab start customer rides?”
Institutional
“Previously, you’ve said Tesla would lead the R&D while SpaceX would lead production for Terafab. Can you provide an update on how that division of responsibilities is evolving, and any additional clarity on the expected capital contributions from Tesla and SpaceX?”
“For autonomous driving, Tesla’s fleet created a huge data advantage by collecting billions of real-world miles. That advantage doesn’t yet exist for Optimus. How should we think about data availability and its impact on Optimus development?”
“Why is it necessary to limit robotaxi operations within specific zones within cities to start? Will every city have to be rolled out this way?”
Tesla will report earnings for Q2 this evening with the Shareholder Deck at 4 p.m. ET, with the call starting around 5:30 p.m. ET.
Elon Musk
Elon Musk handed Grok something no other AI company can get their hands on
Elon Musk says SpaceX will feed engineering data into Grok’s next model, avoiding restricted material.
Elon Musk said Tuesday that SpaceX will feed its internal engineering data into the next major training run for Grok, the AI model now folded into SpaceX following February’s merger. In a post on X, Musk wrote that SpaceX’s “massive corpus of world-class engineering data,” excluding anything restricted under U.S. arms export law, will be added during supplemental training of what he called the “2T run,” a reference to a roughly two trillion parameter model that would nearly double the parameters behind the latest Grok 4.5 that’s rolling out.
SpaceX’s massive corpus of world-class engineering data (excluding material blocked by ITAR) will be added during supplemental training of the 2T run.
This will dramatically improve Grok’s engineering capabilities. https://t.co/BbQEViFByn
— Elon Musk (@elonmusk) July 21, 2026
The excluded material that Musk is referring to would fall under the International Traffic in Arms Regulations (ITAR), which restricts export of technical data tied to defense and space hardware. That likely rules out propulsion specifics for Merlin and Raptor engines along with guidance and control details for SpaceX’s launch vehicles, but leaves manufacturing knowledge, materials science, and Starlink hardware design on the table.
The announcement extends a pattern that has been building since SpaceX’s Nasdaq debut in June, when the company went public with Grok and xAI’s Colossus supercomputer folded into the pitch to investors.
Days after that listing, SpaceX closed its $60 billion all stock acquisition of coding startup Cursor, giving xAI both enterprise software distribution and a stream of real world developer data to train on. Grok 4.5 launched July 8 running partly on that Cursor training data, with Musk describing it as roughly comparable to Anthropic’s Opus 4.7 but faster and cheaper to run.
Feeding SpaceX’s own engineering data into the next AI model follows the same logic Musk has applied across xAI’s sister companies. Tesla supplies real world driving data and manufacturing expertise, X supplies conversational data, and now SpaceX supplies aerospace engineering data built up since 2002.
Musk did not give a release date for the upcoming AI model, referred to elsewhere as Grok 4.6. He has said the two trillion parameter run is in its final training phase and expected to wrap this week.
Tesla has extended its Bay Area ride-hailing service to include pickups and drop-offs at San Francisco International Airport (SFO). The update, shared via the company’s official channels on July 21, allows users in the region to request rides directly to and from one of California’s busiest airports.
The expansion builds on Tesla’s secured limousine permit for SFO operations. Public records show the permit became effective March 20, 2026, and remains active through January 31, 2027. Tesla vehicles operating the service now display authorized limousine permits issued by the City and County of San Francisco.
Our Bay Area rideshare service now goes to SFO ✈️
— Tesla AI (@Tesla_AI) July 21, 2026
Tesla’s ride-hailing program in California relies on Model Y vehicles equipped with Full Self-Driving (Supervised) technology. Human safety drivers remain present in compliance with state regulations, distinguishing the service from fully driverless operations.
The Bay Area geofence covers a broad area spanning north of San Francisco to south of San Jose, offering extensive connectivity across the region.
UPDATE: Elon Musk reveals why Tesla didn’t say ‘Robotaxi’ upon California launch
This SFO addition follows earlier progress at other Bay Area airports. Tesla previously expanded service to San Jose Mineta International Airport (SJC) in late 2025. The company had engaged with SFO, SJC, and Oakland International Airport officials as early as September 2025 to secure necessary approvals for passenger transport.
The service provides a new option for travelers seeking electric, app-based transportation integrated with Tesla’s ecosystem. Rides are booked through Tesla’s dedicated ride-hailing application, which handles matching, routing, and payments. Pricing follows standard ride-hailing models, with potential adjustments based on distance, time, and demand.
Tesla’s California ride-hailing program launched in July 2025 with an initial invite-only rollout in the Bay Area. It started alongside operations in Austin, Texas, marking the company’s second major U.S. market.
The Bay Area remains a primary focus in California, with service centered on high-demand corridors connecting residential, commercial, and now major transportation hubs. This latest airport integration represents a practical step in Tesla’s broader mobility ambitions within the state.
Tesla Q2 Earnings: Here’s what to expect
Tesla Mobile App gets a new feature that wrap fans are going to love
