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
SpaceX’s newest Starmind will make earth data centers obsolete
Elon Musk confirmed Starmind as SpaceX’s AI satellite constellation name, targeting one million orbital compute nodes.
Elon Musk confirmed that Starmind will be the official name of SpaceX’s planned AI satellite constellation, following a trademark filing by xAI that surfaced earlier this week. Starmind is what’s being described to the FCC as a constellation of up to one million AI satellites
It’s worth noting that SpaceX’s Starlink communication satellite and Starmind are built on the same orbital infrastructure concept but serve entirely different purposes. Starlink is a connectivity network, with satellites receiving and relaying data between points on Earth, and functioning as a high-speed internet backbone in space. The satellites themselves do not process or think, and move information from one place to another, the same function a fiber cable performs underground.
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Starmind, on the other hand, is something completely different, and tather than moving data, its satellites would compute data through artificial intelligence and directly in orbit using onboard processors powered by large solar arrays. Where a Starlink satellite is essentially a very fast pipe, a Starmind satellite is a server. The practical implication is that Starmind would allow AI models to run inference, process queries, and generate outputs from space, then beam results down to users anywhere on Earth within milliseconds, and without the data ever needing to travel to a terrestrial data center.
Starship will be able to carry 30 to 50 AI1 satellites per launch, delivering the equivalent of dozens of server racks per flight, with no land acquisition, no power grid approval, and no cooling infrastructure required on the ground.
SpaceX is pursuing this new technology as terrestrial data centers are running into hard limits such as lack of physical space, community opposition, and power and water consumption at a scale that is increasingly difficult to permit. Space has unlimited solar power, natural vacuum cooling, and no zoning boards. Musk said in a June 8 video presentation that he expects space to become the lowest-cost location to deploy AI compute within two to three years. Two AI1 prototypes are scheduled to launch in early 2027, with volume production targeted for the end of that year at a new facility called Gigasat.
The real world applications Starmind enables extend well beyond powering Grok. A constellation of orbiting AI processors could run inference workloads for any paying customer, anywhere on Earth, with latency measured in milliseconds rather than the seconds associated with ground-based cloud routing across continents. Starmind, if it scales as described, would make SpaceX the landlord of AI compute the same way Starlink made it the landlord of satellite internet.
SpaceX announced today that it commenced its first-ever public bond offering, marking a significant step in the newly public company’s capital markets strategy.
The company announced an offering of senior unsecured notes expected to raise at least $20 billion.
The move comes just a short time after SpaceX completed one of the largest initial public offerings in history. In mid-June, the company priced shares at $135 and raised more than $85 billion, propelling founder Elon Musk’s net worth past the trillion-dollar mark and giving the firm substantial liquidity.
🚨 SpaceX has announced its inaugural offering of senior unsecured notes.
The net proceeds will be used to repay outstanding loans under its bridge loan facility in full.
This inaugural debt offering represents a financing milestone for SpaceX, which previously depended… pic.twitter.com/pcOZuVbTRv
— TESLARATI (@Teslarati) June 22, 2026
According to the company’s SEC filing, the net proceeds from the notes will be used primarily to repay in full the outstanding borrowings under its existing bridge loan facility, cover related fees and expenses, and fund general corporate purposes. The offering is being conducted under Rule 144A, as well as Regulation S, targeting qualified institutional buyers and non-U.S. investors. Notes will be unsecured obligations ranking equally with other unsubordinated debt.
The $20 billion bridge loan was used to refinance approximately $17.5 billion in higher-cost “junk” debt tied to X and xAI. SpaceX had merged with xAI in February 2026 in an all-stock deal. The bridge facility, which matures in September 2027, had represented the bulk of SpaceX’s long-term debt.
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In connection with the bond launch, SpaceX disclosed it held approximately $100.8 billion in cash and cash equivalents as of June 19. Investor calls began on the announcement date, with pricing and launch expected shortly thereafter. Rating agencies have assigned investment-grade ratings to the proposed bonds, reflecting confidence in SpaceX’s dominant position in commercial launches and the growth trajectory of its Starlink internet offering.
The debt raise also allows SpaceX to optimize its balance sheet by replacing short-term, higher-cost bridge financing with longer-date, lower-cost fixed-income securities. This provides greater financial flexibility to support capital-intensive initiatives, including the development of Starship, the expansion of the Starlink constellation, and the integration of AI capabilities following the xAI combination.
SpaceX shares (NASDAQ: SPCX) fell sharply on the news, dropping over 16 percent overall on the market on Monday. The stock had surged initially after debuting but pulled back amid profit-taking and broader market dynamics.
Overall, the bond offering underscores SpaceX’s transition to a mature public company with access to diverse funding sources. It positions the firm to pursue its long-term vision of multiplanetary expansion and AI infrastructure, while maintaining a disciplined approach to its capital structure in a high-growth but capital-heavy industry.
SpaceX confirmed today that it has officially signed its third massive compute deal, providing compute at its Colossus data center in Southaven, Mississippi.
Reflection AI will gain immediate access to NVIDIA GB300 chips at SpaceX’s Colossus 2 data center. In return, Reflection will pay SpaceX $150 million per month starting on July 1, with total payments reaching approximately $6.3 billion if the contract runs through its duration, which is until 2029. Either party can terminate the agreement with 90 days’ notice after the initial three-month period.
CNBC first reported the deal.
🚨 SpaceXAI has agreed to a new compute deal with Reflection AI.
Reflection gets access to NIVIDIA GB300s, and will pay $150M per month to SpaceXAI for the compute. pic.twitter.com/bNPare8U5u
— TESLARATI (@Teslarati) June 22, 2026
This latest partnership highlights SpaceX’s strategy of commercializing its massive Colossus supercomputing infrastructure, originally developed to power Elon Musk’s Grok AI models. The company has rapidly expanded its customer base in the AI sector following its February 2026 merger with xAI, a transaction that valued the combined entity at $1.25 trillion.
SpaceX has previously signed significant compute deals with other major players.
It granted Anthropic exclusive access to the full capacity of its Colossus 1 data center, which exceeds 300 megawatts and includes over 220,000 NVIDIA GPUs. Details from SpaceX’s IPO filings indicate Anthropic will pay $1.25 billion per month through May 2029, potentially generating around $45 billion over the term of the deal.
Additionally, Google agreed to pay SpaceX $920 million per month for compute capacity from October 2026 through June 2029. This 32-month period will provide Google access to roughly 110,000 NVIDIA GPUs, along with supporting processors and memory. Capacity ramps up through September at a reduced fee, with termination options after the first year.
SpaceXA also established arrangements for computing power with Cursor, an AI coding startup. SpaceX acquired them in a $60 billion all-stock deal.
These arrangements position SpaceX’s collective position as an AI infrastructure powerhouse with high-margin revenue potential. The Google deal alone could generate nearly $29.5 billion over its term, while the Reflection contract adds another $6.3 billion.
Combined with the Anthropic arrangement, SpaceX stands to realize tens of billions in revenue from compute leasing in the coming years, which diversifies beyond SpaceX’s traditional rocket launches and Starlink operation.
The deals underscore growing demand for advanced AI training and inference capacity amid chip shortages and surging model development needs. Reflection, valued at $25 billion and focused on “American open intelligence” with government and national security ties, cited recent restrictions on closed models as validation for open-source approaches.
For SpaceX, the partnerships transform capital-intensive data centers into flexible revenue sources while supporting its broader AI ambitions after the company has gone public.
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