SpaceX
SpaceX’s first Starship engine suffers “expected” damage during Raptor test fire
SpaceX CEO Elon Musk says that the first full-scale Starship engine to be tested has already been pushed to the point of damage less than three weeks after the campaign began, setting the stage for the second full-scale Raptor to take over in the near future.
According to Musk, while most of the damaged pathfinder Raptor’s components should still be easily reusable, the assembly of the second finalized engine is “almost done” and that Raptor will take over near-term testing rather than waiting for repairs to the first engine. This is undoubtedly an extraordinarily aggressive test program, particularly for such a new and cutting-edge rocket propulsion system, but these latest developments are ultimately far more encouraging than they are concerning.
Merlins. The max chamber pressure run damaged Raptor SN 1 (as expected). A lot of the parts are fine for reuse, but next tests will be with SN 2, which is almost done.
— Elon Musk (@elonmusk) February 21, 2019
Although the Raptor engine family began integrated subscale static fires way back in September 2016, SpaceX’s propulsion team finalized Raptor’s baseline design and completed assembly, shipment, and an integrated static fire of the first full-scale engine on February 3rd, considerably less than three weeks before Musk took to Twitter. Aside from confirming that the new Raptor had been damaged during its most recent static fire several days prior, Musk indicated that the failure (unsurprisingly) was primarily attributed to the engine reaching the highest chamber pressures yet.
Raptor’s main combustion chamber (the bit directly above the nozzle) has been designed to nominally operate at and reliably withstand extraordinary pressures of 250+ bar (3600+ psi), performance that demands even higher pressures in the components that feed hot methane and oxygen gas into Raptor’s combustion chamber. One prime example hinted at by Musk in a 2018 tweet is its oxygen preburner, used to convert liquid propellant into a high-velocity gas that can then feed a dedicated oxygen turbopump. Aside from the absurdly corrosive environment created by extremely hot gaseous oxygen, the preburner must also survive pressures that could peak as high as 800+ bar, or 12,000 psi.
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- SpaceX’s world-class rocket propulsion team has been progressing through early full-scale Raptor tests at an incredible speed. (SpaceX)
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- Full-scale Raptor’s first static fire test, February 3rd. (SpaceX)
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- Raptor’s business end with a Musk-for-scale. (Elon Musk)
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- Starship revealed a trio of Raptor mockups when SpaceX technicians moved the assembly from stand to ground. (NSF – bocachicagal)
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- A September 2018 render of Starship (then BFS) shows one of the vehicle’s two hinged wings/fins/legs. (SpaceX)
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- BFR (2018) breaks through a cloud layer shortly after launch. (SpaceX)
A lack of technical detail means that it’s hard to know what thrust or main chamber pressure Musk had in mind when referring to exotic alloys that would be needed to survive those pressures, but the performance statistics of a Raptor with a preburner operating at 800+ bar would probably outstrip anything Musk has thus far described. In other words, it’s safe to assume that Raptor has probably not been pushed to those performance levels just yet, although it’s still a distant possibility. More likely is that 800+ bar in the oxygen preburner is an extreme stretch-goal that will take concerted research, development, and optimization to achieve, with Raptor having suffered damage somewhere below those levels while still reaching eye-watering performance figures.
— Elon Musk (@elonmusk) February 4, 2019
For an engine as complex as Raptor, there are countless dozens of potential failure modes the appearance of which would come as little surprise for an engine just days into full-scale testing. Above all else, the Raptor test schedule held by SpaceX’s world-class propulsion team – be it self-motivated or driven by reckless management-by-spreadsheet – has been fast-paced in the extreme, taking the first high-performance Raptor ever built from standstill to more than 90% thrust and chamber pressures of almost 270 bar (3900 psi) in – quite literally – less than one week. In the same period of time, more than half a dozen static fire tests (ranging from 1-10 seconds) were performed.
Within a few days of that February 10th milestone, in which Raptor reached chamber pressures comparable with the most advanced modern engines (namely RD-180/190/191), the engine was apparently pushed dramatically higher still, reaching a chamber pressure (and thus thrust) that wrought damage on some of the more sensitive parts of the engine’s plumbing. Despite the fact that the second production Raptor is apparently already “almost done”, Musk suggested that it would already feature changes (of unknown gravity) to mitigate the failure modes experienced by Raptor SN01.
SN2 has changes that should help
— Elon Musk (@elonmusk) February 21, 2019
In an industry where NASA and contractors like Aerojet-Rocketdyne will spend months between static fire tests of Space Shuttle engines that have each literally flown multiple (if not) dozens of missions to orbit and have a demonstrated performance and reliability record that is measured in the hundreds of thousands of seconds, the speed and agility of SpaceX’s Raptor development and test program is breathtaking. What remains to be seen is just how comparably reliable and successful the end results (i.e. operational Raptor) will be, but an attitude that actively accepts and even pursues testing to destruction can ultimately only serve to benefit the finished product at the cost of destroyed hardware and many on-ground lessons learned the hard ways.
Given the immense success of SpaceX’s Merlin family of engines and the aggressive strategy of development and continuous improvement that brought it from Merlin 1A to 1D and MVacD, SpaceX is clearly not fumbling around in the dark when it comes to Raptor R&D.
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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.
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