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SpaceX sends Starship’s first vacuum Raptor engine to Boca Chica
For the first time, SpaceX has shipped a vacuum-optimized Raptor engine to its Boca Chica, Texas Starship factory days after the company’s present reiterated plans for an inaugural orbital launch attempt as early as July.
Back in March 2021, CEO Elon Musk confirmed that he’d set SpaceX a goal of attempting Starship’s first orbital launch no later than the end of July – around four and a half months distant at the time. Fifteen weeks later, though the prospects of an orbital launch attempt happening in July have practically shrunk to zero, SpaceX COO and President Gwynne Shotwell – best known for acting as a more grounded foil to Musk’s often impractical schedule estimates – reiterated that the company is still “shooting for July” for Starship’s first orbital launch attempt.
As of late June, hitting that target would require SpaceX to string together numerous extraordinary feats of engineering and rocketry in record time or attempt some extremely unorthodox corner-cutting.
The launch pad and launch vehicle hardware needed for Starship’s first space shot are currently far from ready for flight. On June 24th, Musk unexpectedly revealed that the Super Heavy booster prototype SpaceX is now in the late stages of assembly isn’t actually the booster that will carry Starship on its first space launch attempt. In other words, though dozens of rings in various states of work are strewn about SpaceX’s Boca Chica factory, the company has yet to begin assembling the massive 65m (~215 ft) tall booster required for the first orbital launch attempt.
Using Super Heavy Booster 3 (B3) as a ruler, assembly could easily take 9-10 weeks – starting whenever the process actually begins. If SpaceX started stacking Booster 4 today, in other words, it’s unlikely that the rocket would even be complete by the end of August. Barring SpaceX taking unprecedented shortcuts, completing the booster is just part of the process of preparing for flight and B4 would still need to be qualified for flight, likely involving at least one cryogenic proof and static fire test.
In a best-case scenario where SpaceX begins assembly today, manages to halve Booster 4 assembly time in one fell swoop, the sneaks the second Super Heavy ever completed through qualification testing in a single week, the orbital flight test booster still wouldn’t be ready for Starship installation (likely another unprecedented first) before mid-August.
That would then leave SpaceX five or six weeks to fully assemble Starship S20, a process that has yet to begin. Like Starship SN15, which Musk said sported “hundreds of improvements”, Musk has also stated that Ship 20 and all after it will feature another batch of upgrades needed to take Starship orbital. Starship SN15 was very gradually stacked and assembled over the course of almost four months, though that slow assembly can likely be blamed on the fact that SpaceX is busy testing Starships SN8 through SN11 and was effectively waiting to see if any other major changes might be required.
While most of S20’s upgrades are a mystery, the ship’s thrust dome – spotted in work at Boca Chica earlier this month – has already confirmed that the prototype will be the first with the necessary hardware for Raptor Vacuum engine installation. That likely means that S20 will also be the first Starship to attempt to static fire six Raptor engines*, potentially producing more thrust than a Falcon 9 booster. On June 27th, one such vacuum-optimized Raptor (RVac) arrived in Boca Chica for the first time ever, making it clear that the comparatively brand new engine may already be ready to start integrated Starship testing.
*Update: SpaceX CEO Elon Musk says that the Raptor Vacuum delivered to Boca Chica on June 27th is, in fact, meant for Starship S20, seemingly confirming that the prototype will fly with a full six Raptor engines.
Of course, beyond Starship and Super Heavy, SpaceX also has a great deal of work left to get the rocket’s first orbital-class launch facilities partially operational. SpaceX will need to complete and activate at least one or two more custom-built propellant storage tanks, sleeve those three or four tanks with three or four massive thermos-like ‘shells,’ complete thousands of feet of insulated plumbing and wiring, finish a massive ‘launch table,’ install that table on a six-legged ‘launch mount;’ outfit that table and mount with an array of power, avionics, hydraulics, and fueling equipment and plumbing; complete a ~145m (~475 ft) ‘integration tower,’ and perform the first fit checks and shakedown tests with a real booster or Starship.
Only then will SpaceX be able to attempt Starship’s first space launch. All told, it might not be literally impossible for SpaceX to complete all the above work in less than five weeks, but it’s safe to say that the odds of that happening could probably make a lottery ticket blush. Regardless, if Starship reaches orbit at any point before the end of 2021, it would beat out simpler “next-generation” rockets like Ariane 6, ULA’s Vulcan, and Blue Origin’s New Glenn despite beginning concerted development years later and with a far less certain funding situation.
Elon Musk
Elon Musk teases crazy outlook for xAI against its competitors
Musk’s response was vintage hyperbole, designed to rally supporters and dismiss doubters, something his responses on social media often do.
Elon Musk has never been one to shy away from crazy timelines, massive expectations, and outrageous outlooks. However, his recent plans for xAI and where he believes it will end up compared to its competitors are sure to stimulate conversation.
In a bold and characteristic response on X, Elon Musk fired back at a recent analysis that positioned his AI venture, xAI, as lagging behind industry frontrunners.
The post, from March 14, came as a direct reply to forecaster Peter Wildeford’s assessment, which drew from benchmarks and reporting to rank AI developers.
xAI will catch up this year and then exceed them all by such a long distance in 3 years that you will need the James Webb telescope to see who is in second place
— Elon Musk (@elonmusk) March 14, 2026
Wildeford placed Anthropic, Google, and OpenAI in a virtual tie at the top, with xAI and Meta trailing by about seven months. Chinese players like Moonshot, Deepseek, zAI, and Alibaba were estimated to be nine months behind, while France’s Mistral lagged by about a year and a half.
Musk’s response was vintage hyperbole, designed to rally supporters and dismiss doubters, something his responses on social media often do.
He claimed xAI would “catch up this year,” meaning by the end of 2026, erasing that seven-month deficit against the leaders. But he didn’t stop there.
Musk escalated his vision to 2029, predicting xAI would “exceed them all by such a long distance” that observers would need the James Webb Space Telescope, NASA’s orbiting observatory stationed about 930,000 miles from Earth, to spot whoever lands in second place. This analogy underscores Musk’s confidence in xAI’s trajectory, implying an astronomical lead that could redefine the AI landscape.
Breaking down these claims reveals Musk’s strategic optimism. First, the short-term catch-up: xAI, launched in 2023, has already released models like Grok, but recent benchmarks, including those for Grok 4.2, have shown it falling short in capabilities compared to rivals.
Anthropic’s Claude series, Google’s Gemini, and OpenAI’s GPT models dominate in areas like reasoning, coding, and multimodal tasks. Musk’s assertion suggests aggressive scaling in compute, talent, or architecture, perhaps leveraging xAI’s ties to Tesla’s Dojo supercomputers or Musk’s vast resources, to close the gap swiftly.
The longer-term dominance by 2029 paints an even more audacious picture. Musk envisions xAI not just parity but supremacy, outpacing competitors in innovation speed and model sophistication.
This could involve breakthroughs in energy-efficient training, real-world integration, like Tesla’s robotics, or ethical AI alignment, aligning with Musk’s stated goal of “understanding the universe.”
Critics, however, point to parallels with Tesla’s Full Self-Driving delays; one reply highlighted Musk’s 2023 promise of FSD readiness. Musk has made this promise for many years, and although the system has been strong and improving, it is still a ways off from the completely autonomous operation that was expected by now.
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Musk’s comment highlights the intensifying U.S.-centric AI race, with xAI challenging the “three-way” dominance noted by Wharton professor Ethan Mollick, whom Wildeford quoted. As geopolitical tensions rise—evident in the Chinese firms’ lag—Musk’s tease could spur investment and talent wars.
Yet, it also invites scrutiny: Will xAI deliver, or is this another telescope-needed mirage? In an industry where timelines slip but stakes soar, Musk’s words keep the spotlight on xAI’s ambitious path forward.
Elon Musk
Tesla Terafab set for launch: Inside the $20B AI chip factory that will reshape the auto industry
Tesla set to launch “Terafab Project: A vertically integrated chip fabrication effort combining logic processing, memory, and advanced packaging.
Tesla is making one of the boldest bets in its history. On March 14, Elon Musk posted on X that the “Terafab Project launches in 7 days,” pointing to March 21, 2026 as the start date for what he has described as a vertically integrated chip fabrication effort combining logic processing, memory, and advanced packaging.
Tesla first confirmed Terafab on its January 28, 2026 earnings call, where Musk told investors the company needs to build a chip fabrication facility to avoid a supply constraint projected to materialize within three to four years. But the seeds were planted even earlier. At Tesla’s annual general meeting last year, Musk warned that even in the best-case scenario for chip production from their suppliers, it still wouldn’t be enough, and declared that building a “gigantic chip fab” simply had to be done.
While there has been no official announcement on where Tesla plans to break ground on the massive Terafab, all signs point to the North Campus of Giga Texas in Austin.
Months of speculation has surrounded Tesla’s North Campus expansion at Giga Texas, where drone footage captured by observer Joe Tegtmeyer revealed massive construction site preparation just north of the existing factory on a scale that rivals the original Giga Texas footprint itself.
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The project is projected to produce 100–200 billion AI and memory chips annually, targeting 100,000 wafer starts per month, at an estimated cost of $20 billion. Tesla is targeting 2-nanometre process technology and anticipated to be the most advanced node currently in commercial production. Dubbed the Tesla AI5 chip, the chip will pack 40x–50x more compute performance and 9x more memory than AI4, and will be among the first products Terafab factory is set to produce. This highly optimized, and massively powerful inference chip is designed to make full self-driving (FSD) and Tesla’s Optimus robots faster, safer, and with full autonomy.
(Credit: Tesla)
This is where Terafab becomes a genuine game-changer. If Tesla successfully builds a 2nm chip fab at scale, it becomes one of only a handful of entities that’s capable of producing AI silicon in-house, with competitive implications that extend far beyond Tesla’s own vehicles, and potentially positioning Tesla as a chip supplier or licensor to other industries.
Credit: @serobinsonjr/X
The next-gen Tesla AI chips will power advancements in Full Self-Driving software, the Cybercab Robotaxi program, and the Optimus humanoid robot line. Musk’s projections for Optimus require chip volumes that no existing external supplier can commit to on Tesla’s timeline.Competitors like Waymo and GM’s Cruise remain dependent on third-party silicon, leaving them exposed to the same supply chain vulnerabilities Tesla is now working to eliminate entirely.
The Terafab launch this week may not mean a factory opens its doors overnight, but it signals Tesla is serious about owning the entire AI stack, from software to silicon.
Elon Musk
What is Digital Optimus? The new Tesla and xAI project explained
At its core, Digital Optimus operates through a dual-process architecture inspired by human cognition.
Tesla and xAI announced their groundbreaking joint project, Digital Optimus, also nicknamed “Macrohard” in a humorous jab at Microsoft, earlier this week.
This software-based AI agent is designed to automate complex office workflows by observing and replicating human interactions with computers. As the first major outcome of Tesla’s $2 billion investment in xAI, it represents a powerful fusion of hardware efficiency and advanced reasoning.
At its core, Digital Optimus operates through a dual-process architecture inspired by human cognition.
Macrohard or Digital Optimus is a joint xAI-Tesla project, coming as part of Tesla’s investment agreement with xAI.
Grok is the master conductor/navigator with deep understanding of the world to direct digital Optimus, which is processing and actioning the past 5 secs of…
— Elon Musk (@elonmusk) March 11, 2026
Tesla’s specialized AI acts as “System 1”—the fast, instinctive executor—processing the past five seconds of real-time computer screen video along with keyboard and mouse actions to perform immediate tasks.
xAI’s Grok model serves as “System 2,” the strategic “master conductor” or navigator, providing high-level reasoning, world understanding, and directional oversight, much like an advanced turn-by-turn navigation system.
When combined, the two can create a powerful AI-based assistant that can complete everything from accounting work to HR tasks.
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The system runs primarily on Tesla’s low-cost AI4 inference chip, minimizing expensive Nvidia resources from xAI for competitive, real-time performance.
Elon Musk described it as “the only real-time smart AI system” capable, in principle, of emulating the functions of entire companies, handling everything from accounting and HR to repetitive digital operations.
Timelines point to swift deployment. Announced just days ago, Musk expects Digital Optimus to be ready for user experience within about six months, targeting rollout around September 2026.
It will integrate into all AI4-equipped Tesla vehicles, enabling parked cars to handle office work during downtime. Millions of dedicated units are also planned for deployment at Supercharger stations, tapping into roughly 7 gigawatts of available power.
Oh and it works in all AI4-equipped cars, so your car can do office work for you when not driving.
We’re also deploying millions of dedicated Digital Optimus units in the field at Superchargers where we have ~7 gigawatts of available power.
— Elon Musk (@elonmusk) March 12, 2026
Digital Optimus directly supports Tesla’s broader autonomy strategy. It leverages the same end-to-end neural networks, computer vision, and real-time decision-making tech that power Full Self-Driving (FSD) software and the physical Optimus humanoid robot.
By repurposing idle vehicle compute and extending AI4 hardware beyond driving, the project scales Tesla’s autonomy ecosystem from roads to digital workspaces.
As a virtual counterpart to physical Optimus, it divides labor: software agents manage screen-based tasks while humanoid robots tackle physical ones, accelerating Tesla’s vision of general-purpose AI for productivity, Robotaxi fleets, and beyond.
In essence, Digital Optimus bridges Tesla’s vehicle and robotics autonomy with enterprise-scale AI, promising massive efficiency gains. No other company currently matches its real-time capabilities on such accessible hardware.
It really could be one of the most crucial developments Tesla and xAI begin to integrate, as it could revolutionize how people work and travel.
Elon Musk teases crazy outlook for xAI against its competitors
Tesla Terafab set for launch: Inside the $20B AI chip factory that will reshape the auto industry
