Connect with us

News

SpaceX’s Starlink eyed by US military as co. raises $500-750M for development

SpaceX's first two Starlink prototype satellites are pictured here before their inaugural launch. (SpaceX)

Published

on

In a reasonably predictable turn of events, SpaceX has been awarded a healthy $28.7M contract to study, develop, and test possible military applications of its prospective Starlink internet satellite constellation.

Previously reported by Teslarati in August 2018, FCC applications related to Starlink revealed that SpaceX had plans to develop and test Starlink interconnectivity with conformal antenna arrays installed on aircraft, all but directly pointing to military involvement with a reference to the need for aerial maneuvers “[representative] of a high-performance aircraft.”

Advertisement

Around the same time as those FCC documents surfaced, the US Air Force Research Laboratory (AFRL) spoke with AviationWeek about plans to experiment with the potential capabilities offered by a flurry of proposed low Earth orbit (LEO) internet satellite constellations, including the likes of SpaceX’s Starlink, OneWeb, a Telesat network, and others. While no specific companies were fingered in AFRL’s public statements, it was far too convenient to be a coincidence. Four months later, the below transaction was published in the Department of Defense’s running list of new contract awards:

“[SpaceX], Hawthorne, California, has been awarded a $28,713,994 competitive, firm-fixed-price … agreement for experimentation … in the areas of establishing connectivity [and] operational experimentation … [and] will include connectivity demonstrations to Air Force ground sites and aircraft for experimental purposes. For the proposed Phase 2, the awardee proposes to perform experiments [with] early versions of a commercial space-to-space data relay service and mobile connectivity directly from space to aircraft.” – Department of Defense, FBO FA8650-17-S-9300

Those dots were fairly easy to connect earlier this year, but this agreement confirms the apparent arrangement with certainty. Almost three months after SpaceX could have received its initial funding, it’s possible that the company has already begun basic testing along the described lines with the two prototype Starlink satellites currently in orbit, although no FCC or FAA filings (that I am aware of) have suggested that those tests are ongoing. SpaceX may be waiting for the launch of a second generation of Starlink prototype satellites to begin seriously putting its antenna and communications technologies through their mid-air paces.

Early answers to the biggest question

At this point in time, the viability and potential utility of Starlink and other large LEO constellations are well established. What has not been established, however, is how exactly any of the proposed constellations – especially Starlink – can go from paper to orbit. In other words, the reasonable question to ask of any company pursuing such an endeavor is how they plan to fund the acquisition of capital-intensive manufacturing infrastructure and launch services.

Ultimately, SpaceX will receive $19.1M of the full $28.7M sum from the DoD in FY2019 (Oct 1, 2018 to Sept 30, 2019). This absolutely dwarfs all other contracts awarded thus far under the AFRL’s Defense Experimentation Using Commercial Space Internet (DEUCSI) program, which began in August 2017 and has since awarded $2.5M and $5.6M contracts to Iridium and L3, respectively. In the grand scheme of things, ~$30M is a pittance in the face of the extensive investments SpaceX needs to make if it hopes to mass-produce high-performance satellites at a truly unprecedented scale.

 

Advertisement

This is where a duo of major investment and fundraising developments come into play. In the last several months, word has gotten out that SpaceX secured a respectable $250M loan through the sale of debt, and more recently wrapped up an equity investment round to the tune of $500M, playing off of long-time investors with a demonstrated interest in belief in the company’s long-term vision. For unknown reasons, SpaceX had originally looked into raising the full $750M through a debt-equity loan, but – despite reports that its market was very healthy – soon cut the offering to $500M and eventually $250M, which it ultimately secured in November. Combined with a traditional $500M equity-investment uncovered earlier this month, SpaceX appears to have nearly completed fundraising of more than $750M in the second half of 2018 alone.

Put a different way, SpaceX has very rapidly gotten very serious about doubling down on Starlink. According to the Wall Street Journal, who originally broke the news of a new $500M equity round, that funding is to be predominately focused on getting Starlink up and running as a serious venture capable of mass-producing satellites.  According to a recent Reuters analysis of the Starlink program, CEO Elon Musk challenged the company to begin dedicated launches of operational Starlink satellites as early as June 2019, and the company also plans to launch another round of improved (Gen 2) satellite prototypes early next year.

Advertisement

For prompt updates, on-the-ground perspectives, and unique glimpses of SpaceX’s rocket recovery fleet check out our brand new LaunchPad and LandingZone newsletters!

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.

Advertisement
Comments

News

SpaceX reveals Starship Flight 13 launch date

Published

on

SpaceX Starship V3 flight 12
SpaceX Starship V3 flight 12 (Credit: SpaceX)

SpaceX is preparing for the 13th integrated flight test of its Starship system, with a targeted launch as early as Thursday, July 16. The 90-minute launch window opens at 5:45 p.m. CT from Starbase in South Texas.

This comes roughly seven weeks after Flight 12 on May 22, underscoring the company’s accelerating pace in its rapid development campaign. The mission will use the latest Starship and Super Heavy V3 vehicles equipped with Raptor 3 engines. Booster 20 will attempt a controlled boostback burn, followed by a splashdown in the Gulf of Mexico, while Ship 40 will follow a suborbital trajectory.

Advertisement

Key objectives for Flight 13 will include demonstrating reliable stage separation, engine performance under various conditions, and controlled reentry.

A major milestone for Flight 13 is the first deployment of 20 next-generation Starlink V3 satellites. These satellites feature advanced laser links for inter-satellite communication, deployable solar arrays, and onboard cameras, six of which will capture imagery of Starship’s heat shield during flight.

Several heat shield tiles on Ship 40 will be painted white to serve as imaging targets, while additional experiments test upgraded tiles on aft flaps, modified attachments on the aft skirt, and load-sensing tiles to measure stresses. The upper stage will also attempt a single Raptor engine relight in space before a targeted splashdown in the Indian Ocean.

These tests build directly on lessons from Flight 12, which introduced the V3 configuration but encountered issues including a booster flip anomaly during boostback and an engine-out event on the ship. Hardware and software modifications on Booster 20 and Ship 40 aim to improve engine relight reliability, startup sequencing, and overall robustness.

Advertisement

The short interval between Flights 12 and 13 highlights SpaceX’s iterative approach. Elon Musk has repeatedly emphasized that Starship launches will become “incredibly common” in the coming years.

The company envisions scaling to rates as high as one launch per hour within 4-5 years, potentially enabling thousands of flights annually. Such cadence is essential for Starship’s goals: establishing orbital refueling for lunar and Mars missions, deploying massive satellite constellations, and making life multiplanetary.

Advertisement

With each flight, Starship edges closer to full reusability and operational maturity. Success on July 16 would mark another step toward routine access to space and the ambitious vision of humanity becoming a spacefaring civilization.

Continue Reading

News

Tesla shows rapid teardown of Model S and X lines, paving the way for Optimus at Fremont

Published

on

Credit: Tesla

Tesla shared a striking video showcasing the decommissioning of the original Model S and Model X assembly line at its Fremont Factory in Northern California. Completed in just 46 days, the teardown involved heavy machinery dismantling concrete pits, removing robotic arms and conveyors, and clearing the space for new production.

The post, captioned “End of an era,” captured both the end of a historic chapter and Tesla’s aggressive pivot toward its next major initiative, Optimus.

Advertisement

The decision to retire the Model S and Model X originated during Tesla’s Q4 2025 Earnings Call in late January 2026. CEO Elon Musk announced that production of the company’s flagship sedan and SUV would wind down by the end of Q2 2026, describing it as bringing the programs to an “honorable discharge.”

Custom orders ceased around early April 2026, with the final vehicles rolling off the line in early May. A special signature delivery ceremony on May 20 marked the emotional close for these vehicles, which had defined Tesla’s early success and luxury EV segment since the Model S launch in 2012.

The primary reason for tearing down the lines was to repurpose the valuable factory floor space for high-volume production of Tesla’s Optimus humanoid robot. Musk had indicated on Earnings Calls that the Fremont S/X line would be replaced by a dedicated Optimus manufacturing line targeting a capacity of one million units per year.

Elon Musk outlines Tesla Optimus production expectations

Advertisement

This move aligns with Tesla’s broader strategic shift from traditional vehicle manufacturing toward robotics and artificial intelligence, leveraging the company’s expertise in autonomy, AI training, and high-volume production.

Optimus, Tesla’s general-purpose humanoid robot, is designed to perform repetitive or dangerous tasks in factories, warehouses, and eventually homes. Powered by Tesla’s AI and Neural Networks, it aims to be a versatile, affordable platform. Production of Optimus Gen 3 is already underway in limited form at Fremont, with full-scale output on the converted line expected to begin in late July or August.

Tesla is targeting rapid scaling, with internal ambitions pointing toward tens or even hundreds of thousands of units annually by the end of 2026.

Longer-term, Tesla is constructing a much larger second-generation Optimus facility at Giga Texas, with potential capacity reaching millions of units per year. The company views Optimus as a transformative product that could eventually surpass its automotive business in scale and value, enabling widespread deployment of useful robots across industries. CEO Elon Musk has even predicted it would be the most popular product of all-time.

Advertisement

As one era closes at Fremont, another is rapidly taking shape.

Continue Reading

Elon Musk

Elon Musk admits he was ‘clearly wrong’ about Anthropic

Published

on

Ministério Das Comunicações, CC BY 2.0 , via Wikimedia Commons

Elon Musk posted a candid admission on his social media platform X on June 9, declaring that he had been “clearly wrong” about Anthropic. The statement marked a notable reversal from his earlier skepticism toward the AI company.

In September, Musk had written, “Winning was never in the set of possible outcomes for Anthropic,” reflecting his view at the time that the startup had lacked the foundation or even the trajectory to succeed in what is an incredibly intense race for advanced artificial intelligence.

Musk’s latest post came amid discussion of Anthropic’s reliance on external compute resources. He praised the company’s progress, stating that Anthropic is “obviously currently the leader in AI” and that “no company has released a model as good as Mythos/Fable,” with expectations of a strong follow-up in Mythos 2.

The tone shifted dramatically from dismissal to acknowledgement of superior performance.

Advertisement

The context of Musk’s comments added significance. Anthropic has been operating under a recent compute deal with SpaceXAI, Musk’s AI infrastructure-focused venture. The pair entered a short-term GPU lease agreement initiated in May, providing Anthropic access to critical computing power for training and deploying its frontier models.

Advertisement

SpaceXAI signs agreement with Anthropic for massive AI supercomputer access

Some observers had speculated that Musk could leverage this dependency to disadvantage a rival. Musk directly addressed the possibility, writing, “I would never cut them off in a way that hurt them badly, even as a competitor. That’s not my style.”

To support his commitment to ethical competition, Musk referenced concrete examples from his other companies. Tesla famously open-sourced its entire portfolio of electric vehicle patents in 2014. The move was designed to accelerate the global adoption of sustainable transportation technology rather than protect proprietary advantages.

Tesla also made its Supercharger network available to competing electric vehicle manufacturers, transforming what could have remained an exclusive charging ecosystem into a shared infrastructure that benefits the broader industry and reduces barriers for EV adoption.

Advertisement

Musk further pointed to SpaceX’s practices, noting that the company launches satellites for competing commercial systems “with no increase in price or use of unfair terms.” He extended the principle to his social platform, observing that “even my worst enemies attack me on this platform,” underscoring preference for open discourse over retaliation.

These examples have illustrated Musk’s long-standing philosophy that long-term technological progress is best served by open competition and infrastructure sharing rather than leveraging market power to stifle rivals. In the fast-evolving AI sector, where compute resources and model capabilities determine leadership, Musk’s stance suggests a willingness to compete on innovation and performance alone.

Musk’s admission arrives as SpaceXAI itself advances its own frontier models while maintaining business relationships across the ecosystem. By publicly correcting his earlier assessment and reaffirming principles of fair play, Musk highlights a model of competition that prioritizes advancement of the field over short-term tactical advantages.

Advertisement
Continue Reading