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SpaceX wins US military satellite constellation launch contract to close out 2020

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SpaceX’s Falcon 9 workhorse rocket has secured a new US military launch contract worth $150 million, closing out a spectacularly successful year.

Announced by the Department of Defence’s (DoD) Space Development Agency (SDA) on December 31st, the contract stipulates that SpaceX will launch as many as 28 Transport and Tracking Layer (TTL) satellites on two Falcon 9 rockets in the seven months between September 2022 and March 2023. If things go according to plan, those two launches will orbit an entire “Tranche 0” satellite constellation hoped by the SDA to demonstrate the exceedingly rare ability for a US military agency to move quickly and field solutions that are both affordable and effective.

If successful, Tranche 0 will provide the US military with a globally-networked satellite constellation of communications satellites and missile detection satellites capable of delivering “warning, tracking, and targeting” data anywhere on Earth.

SpaceX has closed out a halcyon year by winning another $150 million worth of launch contracts. (SpaceX)

Curiously, SDA’s decision comes at the same time as repeated protests from Raytheon have frozen work on 8 of the ~28 satellites SpaceX is now scheduled to launch – four of which SpaceX itself won $149 million to design and build. Known as the Tracking Layer of Tranche 0, SDA contracted with SpaceX and L3Harris ($193 million) on October 7th, 2020 to build four missile warning satellites apiece. The award was SpaceX’s first satellite production contract ever, rather quietly catapulting the company into the multibillion-dollar market for US civil and military spacecraft.

SDA ultimately bowed to Raytheon’s protests and announced plans to “reevaluate” its decision to award Tracking Layer contracts to SpaceX and L3Harris, but the agency says it will not allow new bids to be submitted. In other words, unless SDA discovers some kind of error in its original decision-making process, odds are extremely low that the protest will change the outcome. In the meantime, though, the protest means that SpaceX and L3Harris are legally required to pause all work on their respective satellite development contracts until the SDA completes its reevaluation.

Next to nothing is known about the four satellites SpaceX has contracted to build for the US military but it’s safe to say that they’ll build off of Starlink. (SpaceX)

The month prior, SDA had awarded contracts to Lockheed Martin ($187.5M) and York Space Systems ($94M) to deliver ten “Transport Layer” satellites apiece. The Tranche 0 Transport Layer is designed to use laser interlinks to securely route Tracking Layer missile warning alerts almost anywhere on Earth while also providing some limited general-purpose communications capabilities.

Ultimately, whether Raytheon’s protests actually net the company one of the Tracking Layer satellite production contracts, SpaceX is now guaranteed to launch them.

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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.

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Elon Musk

Tesla is fixing Full Self-Driving’s pothole problem

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Tesla Model Y L in a field
Credit: Tesla

Tesla Full Self-Driving is set to get a major fix with pothole avoidance, a feature that CEO Elon Musk said recently was “coming soon.” The feature has been included within the FSD v14 release notes for some time as an upcoming improvement.

Potholes come in all shapes and sizes, but one thing is universal about them, and that is the fact that every driver wants to avoid them. Driving into or over a pothole can cause tire and wheel damage, alignment issues, and even, in some more severe instances, injury to occupants or major damage to a vehicle in despair.

Tesla Cybercab uses a unique strategy for picking up the right rider

Musk said late last night in a post that pothole avoidance while utilizing the Full Self-Driving suite is “coming soon.”

Full Self-Driving, even in its most recent and robust forms, still has its shortcomings. While the suite has performed exceptionally well with avoiding on-road obstacles like cardboard boxes, horse droppings, car parts, and other debris, it still seems to struggle with recognizing certain things.

Potholes and other abrupt changes in a road’s layout are things that FSD still tends to struggle with. Perhaps the suite’s 3D modeling is still in need of some additional data or some sort of script that will help it to avoid a potentially destructive pothole or bump in the road that would be easily recognizable by the human eye.

Musk has mentioned pothole avoidance for some time, with the initial idea coming in April 2019 when an owner first requested the feature. Musk said that Tesla would “definitely” develop pothole avoidance.

In August 2020, Musk said Tesla was in the process of labeling bumps and potholes so cars can either slow down or steer around them altogether.

Tesla to utilize micro maps for pothole-detection in future update

Avoiding major disturbances in the road is a necessary feature for Full Self-Driving to have, especially as Tesla is working toward a fully autonomous program that will eventually allow every occupant in the vehicle to sleep, work, or enjoy leisure time while traveling.

That truly begins this week with the launch of Cybercab on Thursday.

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Elon Musk

Elon Musk says he knows how to save Earth for a billion years

Elon Musk says sentient AI satellites launched from the Moon could keep Earth livable forever.

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Elon Musk spent part of his weekend describing a plan to keep the planet livable for roughly a billion years, and it starts with satellites that can think for themselves.

In a post on X, Musk argued that swapping fossil fuels for solar and wind power will not be enough to protect humanity from what he called extremely severe extinction events, the kind that occur roughly every 100 million years. His fix is what he called sentient satellites, or solar-powered satellites, controlled by AI, that would sit in a fixed spot between Earth and the Sun after being launched off the Moon using a giant electromagnetic catapult instead of rockets.

The satellites’ onboard AI would make continuous, small adjustments rather than waiting on human instructions. The mass driver is Musk’s proposed way of getting the raw material there cheaply by using an electromagnetic launch track built on the Moon, where lower gravity and no atmosphere make it far easier to fling cargo into space than it is from Earth.

Musk shared a Grok generated estimate suggesting roughly 5 percent of Florida’s land, or about 1.68 million acres, could face regular flooding by 2070 under a high sea level rise scenario, and said humanity has about 50 years to act before coastal living looks very different than it does today.

This is not the first time Musk has floated the idea. He raised a similar concept in November, describing a solar powered AI satellite constellation that could make tiny adjustments to incoming sunlight to fine tune Earth’s temperature. Musk has also tied planetary risk to his broader vision at SpaceX, where his compensation package is explicitly linked to establishing a self-sustaining Mars colony, one he has described as an insurance policy against the kind of extinction event he referenced this weekend, and where he has said humans could set foot within five to seven years.

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OpenAI cites distrust of SpaceX in decision to drop Cursor partnership

OpenAI will cut SpaceX-owned Cursor’s model access in November, citing Musk’s history of broken contracts.

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OpenAI, the company behind ChatGPT, announced late Friday that it is ending its partnership with Cursor, cutting off the coding tool’s access to its models on November 12. The move comes two weeks after SpaceX completed its $60 billion acquisition of Cursor’s parent company, Anysphere, folding the popular AI coding assistant into Elon Musk’s growing SpaceXAI division.

In a post on its website, OpenAI said the decision came down to trust, not technology. “We cannot be confident that SpaceX will use our technology within our terms of service, based on our experience with Elon Musk’s companies violating contracts,” the company wrote. OpenAI pointed to two specific incidents: X, now part of SpaceX, allegedly breaking the terms of an existing OpenAI contract after Musk bought Twitter.

That lawsuit is the backdrop for all of this. Musk cofounded OpenAI in 2015, left the board in 2018, and sued Sam Altman and Greg Brockman in 2024, arguing they abandoned the company’s nonprofit mission for profit. A federal jury sided with OpenAI in May, finding Musk waited too long to sue rather than ruling on the merits of his claims. Musk said at the time he would appeal to the Ninth Circuit, calling the outcome a “calendar technicality” rather than a real judgment.

Elon Musk breaks silence on OpenAI trial decision

SpaceX’s interest in Cursor predates that verdict by weeks. The company first struck a deal with Cursor in April, securing an option to acquire it for $60 billion or pay $10 billion for joint development work instead. As Teslarati reported at the time, the logic was straightforward: Cursor was paying retail prices to Anthropic and OpenAI, two of its most direct competitors, every time a developer used its product, while SpaceX had idle capacity on its Colossus supercomputer, roughly the equivalent of a million Nvidia H100 GPUs, that Cursor could use to train its own models instead. SpaceX exercised the option in June, days after its own IPO, and the deal closed in mid-August.

Once it closed, Musk moved fast. On an all-hands call with more than 1,000 Cursor employees, he reportedly told staff that SpaceXAI’s Grok was playing catchup in the AI race, unlike Tesla and SpaceX in their own markets, and singled out Anthropic as the company to catch. Cursor CEO Michael Truell now reports directly to Musk inside SpaceXAI.

Elon Musk admits he was ‘clearly wrong’ about Anthropic

Losing OpenAI’s models leaves Cursor leaning harder on Anthropic’s Claude, which has its own compute agreement with SpaceX, and on Cursor’s in-house Composer model, the one SpaceX’s compute was supposed to accelerate in the first place. OpenAI framed the November deadline as maximum notice under its contract, and said it wants to “go above and beyond” to help developers through the transition. Whether Anthropic makes the same call is now the open question in AI coding.

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