SpaceX
SpaceX’s steel Starship glows during Earth reentry in first high-quality render
SpaceX has silently published the first known detailed render of its new stainless steel Starship’s design on the cover of Popular Mechanic’s April 2019 issue, showing the next-generation orbital spacecraft reentering Earth’s atmosphere in a blaze of glowing metal and plasma.
Despite the fact that the render seems to only be available in print and then only through one particular news outlet, Teslarati has acquired a partial-resolution copy of the image to share the latest official glimpse of SpaceX’s Starship with those who lack the means, access, or interest to purchase a magazine. Matters of accessibility aside, SpaceX’s updated render offers a spectacular view of Starship’s exotic metallic heat shield in action, superheating the atmosphere around it to form a veil of plasma around the spacecraft’s hull. According to CEO Elon Musk, the hottest parts of Starship’s skin will be reinforced with hexagonal tiles of steel and transpiration cooling, a largely unproven technology that SpaceX is already in the process of testing.
Aside from one additional view – again only distributed to Popular Mechanic – showing a far wider angle of a SpaceX Starship entering the Martian atmosphere and video shown by CEO Elon Musk to students in Flint, MI a few days ago, this appears to be the first official render of an unequivocally metallic Starship. Aside from its shiny steel exterior, this latest render also offers an exceptionally-illustrated artist’s interpretation of what a Starship with metallic thermal protection might look like during reentry, appearing to take into account a number of things that set such a system apart from traditional heat shielding.
Aside from NASA’s Space Shuttle, which used fragile tiles of insulating material in its reusable heat shield, no other spacecraft have been flown with a primary heat shields that experiences little to no ablation, meaning that the material itself is not eroded during peak heating. Ablative heat shields like the PICA-X system used on SpaceX’s Crew and Cargo Dragons produce distinctly different ‘tails’ during reentry, mainly as a result of the addition of ablated material, much like injecting different elements into a fire or using different materials in rocket nozzles can drastically change the color (and sometimes behavior) of the flame.
While the extreme compressive heating of spacecraft reentering Earth’s atmosphere at many miles/kilometers per second produces plasma instead of what humans recognize as fire, the general idea remains the same. Comparing the reentry tails of spacecraft like the Apollo Command Module, the Space Shuttle, and Orion makes it clear that each vehicle and heat shield produces a subtle but distinctly unique plasma tail over the course of several minutes of peak reentry heating, when the vehicle’s velocity is fast enough to compress atmospheric gases into plasma. Different ablators end up injecting different gases into the superheated plasma tail, hence the different appearance of each tail.
Transpiration cooling will be added wherever we see erosion of the shield. Starship needs to be ready to fly again immediately after landing. Zero refurbishment.— Elon Musk (@elonmusk) March 17, 2019
Aside from a unique lack of ablation for Starship’s stainless steel hull and curious hexagonal steel heat shield tiles, SpaceX may end up having to implement a wholly unproven technology known as transpiration cooling, in which some of
It’s unclear what the resulting methane-rich plasma plume might look like but it’s not out of the question that SpaceX’s graphic design team have either done the math themselves, so to speak, or asked engineers to verify what color Starship’s plasma tail might end up looking like. As shown in the latest render, a plume of hues ranging from light blue and indigo to red through white seems entirely plausible. Regardless, Starship is bound to look spectacular during orbital reentries thanks to its metallic skin and shield and planned hot structure, meaning that the entire windward half of the vehicle could end up glowing red, orange, yellow, and even white-hot, precisely like the thermal testing video Musk recently shared.
SpaceX’s first orbital Starship prototype is already under construction at the company’s ad-hoc South Texas ‘shipyard’, for lack of a better term. According to Musk, that vehicle could be ready to be done “around June” of this year, while its complimentary Super Heavy booster could begin assembly as early as April thru June, as well.
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Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Elon Musk
Another Tesla SpaceX merger prediction by ARK Invest has Elon Musk talking
Elon Musk again denies a Tesla China split as new SpaceX merger speculation resurfaces quickly.
Elon Musk restated that Tesla has no plans to separate its China business from the rest of the company, responding to a new round of merger speculation from ARK Invest.
On the firm’s “Brainstorm” podcast, Cathie Wood’s team, including chief futurist Brett Winton and research director Nick Grous, argued a Tesla and SpaceX combination remains likely, with an announcement possible before the end of the year even if the deal itself would not close that quickly. Winton called Tesla’s Shanghai operations a “small ish wrinkle” for a merger rather than a real obstacle, since SpaceX’s national security work with the U.S. government sits uneasily next to Tesla’s manufacturing base in China.
Musk pushed back on the framing directly. “China is awesome. I strongly encourage people to visit,” he wrote on X. He also repeated language he first used in late July, when the Wall Street Journal reported that Tesla executives had been told to prepare for a possible spinoff, sale, or closure of the China business ahead of a SpaceX tie up. Musk called that report “absurdly fake news” at the time, adding that a separation had “never even come up in a discussion ever,” a line he echoed again this week.
The repeated denial has not settled the underlying question, because Shanghai’s role in Tesla’s business is exactly what makes a merger complicated. Gigafactory Shanghai still ships more than half of Tesla’s global deliveries and functions as the company’s main export hub for Europe and Asia. Teslarati previously reported on Musk’s initial denial, and the merger conversation itself has been building since SpaceX’s IPO gave it public shares to use as acquisition currency.
Wedbush’s Dan Ives has pegged the odds of a Tesla SpaceX merger at 80 to 90 percent by early 2027, and ARK’s prediction of a year end announcement adds another data point to that timeline, even as Musk keeps rejecting the specific mechanics reporters have described. Neither position rules out the other. Musk can deny a China spinoff was ever discussed while analysts still expect some form of combination to move forward, since ARK and Ives are both describing convergence at the corporate level, not necessarily the internal restructuring the Journal described in July.
For now, Tesla’s China business remains intact, and Musk’s comments this week make clear he has no interest in publicly walking that position back, no matter how often the merger question resurfaces.
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Tesla has one big financial question to answer for investors: Morgan Stanley
