SpaceX

The massive $16.8 billion chip facility, which is being built by Tesla and SpaceX with help from Intel, will be located in Grimes County, population 29,268. After securing over a billion dollars in tax breaks from two rural school districts, SpaceX says it will break ground later this year. The fab will supply AI chips to power Musk’s plans to build a “robot army” that includes self-driving cars and humanoid robots, as well as for the data centers he plans on launching into space.

A lot of staffers subscribe just because we enjoy his work (and when he gets his vacation ruined). But today’s newsletter is about the SpaceX lockup expiring — how it should work vs what we will find out tomorrow about how it will work — and how the noted AI hedge fund Situational Awareness may have tanked the bets of noted AI hedge fund Situational Awareness.

The original satellite internet company “for rural America” has filed for bankruptcy after running out of cash and hemorrhaging subscribers to SpaceX. The service will continue to operate during proceedings, but will pivot away from consumers to focus on businesses and governments. It follows EchoStar’s Dish filing for chapter 11 protection in June.

“Fake news,” is how he responded to a Wall Street Journal report on the possible sale of Tesla’s business in its second-largest market:

The orders will cover 18 Falcon 9 missions that are expected to be finished by the end of next year. SpaceX has already gotten more than $7 billion in Pentagon contracts in 2026, according to Reuters.

Starlink’s Direct-to-Cell service continues to evolve beyond basic SMS/messaging to provide light data connectivity in cellular dead zones. Telstra customers in Australia with compatible phones can now use it for apps like Apple Weather, Google Maps, AllTrails, and WhatsApp. T-Mobile users in the US have had similar app support since October.

After last week’s launch attempt misfired and a scheduled attempt Thursday was postponed due to weather, the 13th flight test launched just before 7PM ET on Friday. 20 V3 Starlink satellites were deployed, but it appears there was an issue relighting the Super Heavy booster’s engines for an attempted propulsive landing and splashdown.

Musk and Co have about 18 months to get its long delayed Super Heavy rocket into operation now that the company has stopped building some Falcon 9 components and quit taking future rideshare reservations beyond 2028, according to Bloomberg’s sources. That makes the success of tonight’s 13th test flight — scheduled to go no earlier than 6:45pm ET — all the more important, and not just to suffering stockholders.

The Pentagon may make a deal where it would pay for billions of dollars of compute from SpaceX, according to The Wall Street Journal.

SPCX sunk another three percent in extended trading after last night’s aborted Starship launch, falling further beneath its IPO price of $135. The record-setting IPO made Elon Musk the world’s first (paper) trillionaire. Today he’s worth $838.1 billion. Concerning.

The thirteenth, and first post-IPO, flight test of SpaceX’s massive Starship vehicle was supposed to occur Thursday night, but when the countdown hit zero just before 7PM ET, “Some of the engines didn’t start, triggering an automatic launch abort,” writes Elon Musk.

No, not the 2,500 baby jellyfish NASA launched in 1991 to tell us how the human body reacts to spaceflight, but the rocket-launch phenomenon caused by sunlight reflecting off high-altitude rocket gases at twilight, while the observer watches in darkness.

The company formerly known as xAI has referred to itself as SpaceXAI before following the acquisition by SpaceX. There’s a new logo, too.

SpaceX bonds are creating losses for the fast-money types who piled in at the offering. “Bond types either aren’t sure that SpaceX will hang on to its investment-grade credit ratings, or will only get involved if they get paid a fat risk premium for doing so,” the Financial Times explains. SpaceX stock is, as of this writing, trading below its IPO price. Gee, if only someone had pointed out that this company is a stinker.

President and COO Gwynne Shotwell has apparently told investors that SpaceX plans to launch a new terrestrial Starlink service that would sell mobile contracts directly to individuals in the US — a threat that could extract better revenue-sharing deals from its current telecom partners. Analysts think a T-Mobile acquisition makes sense to accelerate the move and solve SpaceX’s spectrum deficit issue.

Musk’s total net worth is now $957 billion, according to the Bloomberg Billionaires Index. That figure is still $660 billion higher than Larry Page, the next person on the list, whose net worth is $297 billion.

The open-source AI startup has a deal through 2029, similar to Anthropic and Google, to rent compute capacity from SpaceX’s Colossus 2 data center for $150 million per month (up to $6.3 billion), reports the Wall Street Journal.

While SpaceX plans satellite-based AI servers, Bloomberg reports it ran into trouble trying to develop and run Grok AI in Memphis, citing unnamed sources. They claim that deals renting capacity to Anthropic ($15 billion annually) and Google ($920 million per month) happened following hardware variation and lag issues:

As reported by CNBC, the New York Times, and others, trading commenced at a price 11 percent above the $135 IPO price, but lower than the $175 shown in some earlier indications. It’s already spiked as high as $167, before falling back to $155. As long as the share price remains above $138, that is enough to make Elon Musk the world’s first trillionaire.

That price puts SpaceX at a market valuation of around $1.77 trillion ahead of its record-breaking stock market debut on Friday. CNBC reports that SpaceX may allocate 20 percent of shares to retail investors, down from the previous expectation of 30 percent.

No telling if that Starlink Mini dish on the right includes an integrated battery, per rumors, but both terminals look thinner than current models. Elon Musk revealed them yesterday without any specs, pricing, or dates.

Instead of paying hundreds up front, new customers in “select markets” will have to rent their Starlink hardware for $10 per month on top of the monthly fee. It only applies to Residential plans currently, and renters can’t pause the service, but can buy their kit later by ”creating a support ticket,“ according to a support page. The move comes after Starlink recently raised prices on its monthly plans.

After Jeff Bezos’s New Glenn rocket failed to put BlueBird 7 into orbit, AST SpaceMobile will use Elon Musk’s trusty Falcon 9 to help build out AST’s space-based cellular broadband network useable by everyday smartphones. The delivery of those giant BlueBird 8, 9, and 10 satellites — which feature the largest commercial communications arrays ever deployed in low Earth orbit — is currently scheduled for Wednesday, June 17th.

“What we’re showing here is kind of a draft version of the version one of the SpaceX AI satellite,” said Elon Musk at the reveal on Monday. “It’s actually much simpler than a Starlink satellite.” The release of renders and specs for the space-based AI1 data center is very much timed to lend credence to the SpaceX IPO, which is set to begin trading on Friday.