News
US Air Force issues RFP for massive rockets, SpaceX’s BFR could be one of them
The US Air Force has released a Request For Proposal (RFP) that hopes to fund the development of multiple heavy-lift rocket prototypes to launch no later than 2021. The USAF specified on October 5 that it wants to partially fund prototype development for at least three promising US-sourced launch vehicles, while maintaining the options to select none of the proposals or even more than three. The purpose of these broad strokes is to provide the Air Force and US military in general redundant access to space by way of “at least two domestic…launch service providers” capable of meeting National Security Space (NSS) requirements.
However unlikely it may seem, NASA experienced this firsthand when two of the vehicles it funded, SpaceX’s Falcon 9 and Orbital-ATK’s Antares, experienced complete failures within less than a year of each other. Both vehicle failures destroyed supplies intended for the International Space Station and forced NASA to rely on Soyuz missions to fill the gaps created while producing considerable uncertainty for the agency. By funding two or more independent launch vehicles, the Air Force would lessen the impact of such failures, and this assured access is rightly perceived as an invaluable commodity in the military.
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- .While SpaceX’s own visualizations are gorgeous and thrilling in their own rights, Romax’s interpretation adds an unparalleled level of shock and awe. (SpaceX)
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- A render of Blue Origin’s larger New Glenn vehicle. (Blue Origin)
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- The only current render of OATK’s Next Generation Launcher. (OATK)
Several details in the latest proposal make it relatively easy to name the obvious prospective applicants. The payload requirements necessitate heavy lift or even super-heavy lift launch vehicles capable of placing anywhere from 5,000 to 37,500 pounds into a variety of Earth orbits, ranging from low Earth orbit (~500 mi) to direct transfer geostationary orbits (~19,200 mi). This narrows the field considerably, pushing out all smaller-scale vehicles. Also telling is a requirement that proposed launch vehicles make use of rocket propulsion systems (RPS) already funded for development by the USAF if at all possible.
Considering the inherently complex and difficult process of developing massive rockets, initial launch dates no later than 2021 (or 2024) likely mean that the vehicles being considered must already be under some level of serious development. This leaves us with four possible options in the US, undoubtedly not a coincidence given the RFP’s explicit goal of facilitating the creation of “at least three…prototypes as early as possible” and “at least two domestic…launch service providers”. These four vehicles are SpaceX’s BFR, Blue Origin’s New Glenn, ULA’s Vulcan, and Orbital-ATK’s NGL, all of which already have tentative inaugural launch dates clustered from 2019 to 2022. Perhaps even more revealing, all four vehicles can be expected to utilize several rocket propulsion systems (rocket engines) already funded by the Air Force, namely SpaceX’s Raptor, Blue Origin’s BE-4 and BE-3U, and Aerojet-Rocketdyne’s AR-1.
While the development of BE-4 and AR-1 have been somewhat veiled, SpaceX’s Raptor engine has publicly made a great deal of progress. As discussed during Elon Musk’s IAC 2017 presentation, the company has conducted an array of successful tests with its subscale Raptor program, to the tune of 42 individual hot-fire tests totaling more than 1,200 seconds. Musk also reported that the only thing preventing tests longer than 100 seconds was the size of the propellant tanks at the test stand, a genuinely impressive accomplishment if true. The sticking point, however, is how much difficulty SpaceX will have as they transfer to full-scale Raptor testing. The subscale Raptors being tested have a reported thrust of 1,000 kN, whereas the new full-scale thrust targets for BFR have settled on 1,700-1,900 kN, considerably smaller than the 3,000 kN figure from 2016 but still nearly a factor of two larger than the test articles SpaceX has had success with. In fact, educated speculation from SpaceX fans suggest that the operational Raptor as shown in 2017 may only need to be about 15% larger than the current test article(s). The pressure the full-size engine operates at will be considerably higher, so SpaceX’s work is not done by any means, but the company’s next-gen rocket propulsion system is arguably far closer to completion than any of its competitors’ offerings.
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- SpaceX’s subscale Raptor engine has completed more than 1200 seconds of testing in less than two years. (SpaceX)
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- A subscale version of BE-4 testing staged combustion and nozzle technology. (Blue Origin)
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- Aerojet-Rocketdyne’s AR-1 preburner conducted its first successful test earlier this year. (AR)
As far as we are publicly aware, SpaceX’s subscale Raptor testing has yet to result in a major failure and has largely been a great success. Blue Origin’s BE-4 is known to have experienced at least one critical failure during hot-fire testing, while AR-1 has not yet begun full engine tests but is well into concrete hardware testing. Blue Origin’ s BE-4 engine and its New Glenn rocket are currently expected to fly for the first time before 2020, with AR’s NGL tentatively planning for a 2021 inaugural flight, assuming the company chooses to continue pursuing its development.
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SpaceX has not yet specified when BFR or BFS will first take flight. Raptor is likely to begin full-scale testing relatively soon, and Musk revealed that SpaceX was aiming to begin construction of the first BFR as early as Q2 of 2018. It’s quickly starting to look like the U.S. is about to enter a sort of modern commercial space race and regardless of the outcome, the next several months and years are bound to be tense and exciting for SpaceX, Blue Origin, and the established incumbents as they battle for both public and private contracts.
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Investor's Corner
SpaceX and Nvidia team up on Musk’s orbital AI bet
SpaceX revealed a new Nvidia satellite partnership, then Musk pledged an exclusive Nvidia hardware commitment.
SpaceX and Nvidia are now working together on the hardware that will power Musk’s orbital data center ambitions. SpaceX announced on X on Tuesday that it is partnering with Nvidia to design the compute payload for Starmind AI1, the first satellite in a planned constellation built to run AI workloads directly in orbit. Each Starmind satellite will carry Nvidia’s Rubin GPUs and Vera CPUs, according to the post, which included renderings of the payload design.
The announcement landed hours before SpaceX’s first earnings call as a public company, where Musk went further, saying the company has committed to building its AI infrastructure exclusively on Nvidia hardware. “We think the Vera Rubin architecture is the best architecture. We think it’s the best AI computer, and we greatly value our close cooperation and partnership on many levels with Nvidia,” Musk told investors on the call,. “So we’re exclusive to Nvidia.”
Musk said SpaceX plans to deploy Nvidia’s Vera Rubin NVL72 rackscale system, codenamed Kyber, both on the ground and in space. He set a target of 2 gigawatts of compute capacity online by the end of this year, scaling to roughly 10 gigawatts by the end of 2027.
SpaceX’s newest Starmind will make earth data centers obsolete
Starmind has been in development since Musk confirmed the name in June, following an xAI trademark filing that tipped off the project before SpaceX made it official. The idea is massive in scope and instead of moving data down to ground based servers, satellites equipped with onboard processors and large solar arrays would compute AI workloads in orbit and beam results back to Earth. SpaceX has already filed with the FCC for a constellation of up to one million satellites to support the effort, citing constant solar power and the absence of zoning restrictions as advantages over terrestrial data centers.
The Nvidia exclusivity marks a shift in tone from just two weeks ago, when Musk was busy knocking down a report that SpaceX had ordered $52 billion worth of Nvidia GPUs through Foxconn, calling it fake news at the time. The dollar figure in that rumor may have been wrong, but the underlying direction seems correct. SpaceX’s AI division already leases Colossus compute capacity to Anthropic and Google, and Tuesday’s earnings report showed AI revenue climbing sharply as those deals ramp up.
Nvidia shares rose roughly 3% in Tuesday trading on the news, while SpaceX stock climbed nearly 9% during the day before giving back gains after hours as investors digested the earnings report’s capital spending figures.
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SpaceX (NASDAQ: SPCX) reported a beat in revenues and EBITDA in its first earnings call report while also minimizing losses as its business continues to gain momentum.
After its IPO in July, SpaceX saw some tough losses on Wall Street due to a major selloff after a delay in its 13th Starship test flight. The ship launched later that week and completed what was arguably the most successful IFT operation in the Starship program’s history.
Nevertheless, the company is continuing on and reported some encouraging financials while also promoting what appears to be a robust outlook moving forward in its Space, AI, and Connectivity divisions.
SpaceX to report first-ever earnings today: here’s what to expect
Earnings Results
- Revenues: $7.8 billion reported vs. $6.7 billion expected
- Adjusted EBITDA: $3.5 billion vs. $2 billion expected
- Net loss of $541 million, an improvement of $467 million from net loss of $1.0 billion
Additionally, CFO Bret Johnsen had these comments:
“2026 has been a momentous year so far, and the second quarter demonstrated the true power of SpaceX. Revenue growth accelerated across all our business segments and we delivered strong operating leverage, with significant margin expansion led by our new AI compute agreements. Our unparalleled leadership in launch, Starlink subscriber growth, new enterprise and government partnerships, and best-in-class AI infrastructure underscore our ability to drive meaningful scale and deliver attractive returns. As a newly public company, we are delighted to welcome our broad base of shareholders and bondholders. We ended the second quarter with $100 billion of cash, cash equivalents, and marketable securities, and $47.5 billion in backlog. This financial strength gives us substantial capacity to invest in Starship, Starlink Broadband and Mobile satellites, and our AI platform, while maintaining a disciplined long-term capital allocation framework.”
Space Business Highlights
SpaceX shared some of its biggest Space Business Highlights for Q2:
- Space revenues grew 55% sequentially and 29% year-over-year to $962 million, driven by a higher number of large customer launches and a favorable customer shift compared to the prior year
- Total costs and expenses for the Space segment were up by $389 million year-over-year, as we continued to accelerate R&D investments in our Starship program, which we believe will reduce the cost to orbit by 99% or more relative to the historical average, and unlock significant revenue potential across all business segments
- Leading launch provider for the world with 78 launches and 1,041 metric tons of mass to orbit deployed over the six months ended June 30, 2026, primarily allocated to Connectivity for the deployment of our Starlink constellation
- Starship V3 development continued to advance towards full and rapid reusability:
- Completed Starship V3’s first suborbital mission in May, Flight 12, which achieved a successful lift off from our new Starbase pad, a precision landing of Starship’s upper stage, and deployment of modified V2 Starlink satellites
- Subsequent to the second quarter, completed Starship Flight 13 in July, which achieved all flight objectives including deploying 20 production V3 satellites, demonstrating in-space relight of a Raptor engine, and executing the softest ever splashdown of Starship, providing critical views of an intact heatshield
SpaceX will report its earnings today at 4:30 P.M. EDT.
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Elon Musk issued a second pointed warning to SpaceX short sellers on Tuesday, just hours before the company was set to release its first quarterly earnings as a publicly traded firm. Responding to a report highlighting elevated short interest, Musk wrote on X: “I try to warn them, but they just double down …”
The comment came as data from S3 Partners showed roughly 95 percent of available SPCX shares to borrow were on loan, translating to about 34 percent short interest as a percentage of the float. The stock has traded under pressure since its record-breaking IPO in June 2026, declining significantly from early peaks.
I try to warn them, but they just double down … 🤷♂️
— Elon Musk (@elonmusk) August 4, 2026
This marks the second such message from Musk in under three weeks.
On July 17, amid post-IPO volatility, he stated: “The survival probability of firms who maintain a significant short position in SpaceX over time is very low.” At that time, SPCX had fallen roughly 30 percent from its peak above a $2.6 trillion valuation, with short sellers reportedly realizing gains of about $8.7 billion.
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Musk’s warning aligned with optimistic analyses projecting that Starship-driven cost reductions could enable a multi-trillion-dollar space economy through applications such as orbital solar power, asteroid mining, data centers, and Mars-related projects, positioning SpaceX as critical infrastructure.
SpaceX is scheduled to report second-quarter results after the market close later today, followed by a webcast. Analysts anticipate revenue near $6.9 billion, reflecting growth in Starlink, launch services, and AI-related segments. The earnings release precedes a major lockup expiration on August 6 that could free hundreds of millions of insider shares.
Musk has a long track record of confronting short sellers, particularly regarding Tesla, where he has argued that persistent bearish positions underestimate transformative technologies. Critics view his optimism as overly ambitious given near-term stock fluctuations, while supporters see temporary dips as opportunities in a longer-term expansion of the space economy.
As SpaceX opens its books to public scrutiny for the first time, the high short interest and Musk’s repeated cautions set the stage for heightened market attention on the results and management’s commentary.
SpaceX and Nvidia team up on Musk’s orbital AI bet
SpaceX reports beat in first earnings while minimizing losses
