News & Updates
The latest news and updates from companies in the WLTH portfolio.
Mint Explainer | Google vs OpenAI vs Anthropic: Who is really leading the AI race? | Mint
Summary Google's current AI spending is among the largest in the world, and comes at a time when the battle between OpenAI and Anthropic, the two largest AI startups in the world, inches closer towards a trillion-dollar IPO face-off. On 19 May, Google unveiled artificial intelligence (AI) models that it said are specifically designed for high-speed, low-cost AI operations. The company's current AI spending is among the largest in the world, and comes at a time when the battle between OpenAI and Anthropic, the two largest AI startups in the world, inches closer towards a trillion-dollar IPO face-off. But, amid all the rush, is Google quietly inching ahead of the two cutting-edge firms? Mint explains Why is Google chasing a different AI trajectory? While both Anthropic and OpenAI are pushing the bar on AI innovation, Google's showcase at its recent annual event, I/O, was squarely focused on products. While this isn't to say that Google is shunning frontier AI, chief executive Sundar Pichai admitted at post-I/O interviews with media outlets that the company is consciously doubling down on AI usability, rather than sheer cutting-edge innovation. As conversations about real-world AI deployment increase, Google's approach is likely to cater to this. Such an approach could look at maximizing revenue generation from AI, including early hardware sales through Google's smart eyewear. Isn't Google behind Anthropic and OpenAI on AI innovation? On most popular benchmarks, OpenAI's GPT-5.5 xhigh and Anthropic's Claude 4.7 Opus rank marginally higher than Google's Gemini 3.1 Pro. This year, Google's Gemini 3.5 family of models could perform better, but this data isn't out yet. Google's latest, Gemini 3.5 Flash, is designed for speed of results and lower overall cost of AI applications. While Google was perceived to be behind the curve until April last year, its I/O 2025 conference saw the company catch up. Google's share price has reflected this, jumping from $174 to $379 in the last one year, until 26 May. Also Read | As OpenAI and Anthropic soar, where do India's AI startups stand? How big are the trio's AI budgets? On 5 February, Pichai said Google will spend $185 billion on AI in the year ending December. The company earned $132.17 billion in net profit, and spent $61 billion on R&D in 2025. On 31 March, OpenAI announced a $122 billion fundraise at $852 billion valuation. Anthropic, as per a WSJ report on 15 May, is raising $30 billion at $900 billion valuation. Both are also reportedly eyeing initial public offerings (IPO). What could this mean for Big Tech's AI race? OpenAI is yet to report a profitable quarter. On 20 May, WSJ reported that Anthropic is set to clock its first profitable quarter between April and June, with projected revenue of $10.9 billion and net profit of $559 million in the ongoing period. In comparison, Google's parent Alphabet reported $109.9 billion in revenue and $62.6 billion in net profit in the March quarter. Experts believe that with deeper pockets, Google has the financial backing to take products to market. Anthropic and OpenAI are both still focused on building models, which is a cost-intensive process. Also Read | What explains India's uproar over Aadhaar stored in Google Wallets? Are any firms in India close to keeping pace? Not really. India does not have any large technology company focused on building foundational models. For the most part, India's IT ministry and tech companies alike have said that chasing cost-intensive AI models may not be India's approach, and most firms may look at building public-sector AI utilities and services to scale AI deployment. The most-funded startup, Sarvam, is reportedly eyeing a $1.6-billion valuation funding round soon, Bloomberg reported in April. India also does not have AI hardware companies, though Sarvam, on 25 May, partnered with Finland's HMD Global to equip its 'Indus' AI bot in a smartphone. Also Read | Raghuram Rajan: Why today's AI mania might be in for a cold shower
Is Elon Musk really planning to merge SpaceX with Tesla? - Cryptopolitan
Tesla and SpaceX already share board ties, staff, products, power systems, and AI infrastructure. Is Elon Musk really planning to put SpaceX and Tesla (TSLA) under one roof? It's all anyone's talking about on Wall Street, in executive offices, regarding AI expenditure, rockets, and some strange family tree of businesses. SpaceX is getting ready for a Nasdaq listing in a little over two weeks, after hitting a private value of $1.25 trillion earlier this year through its merger with xAI. Tesla is already worth about $1.6 trillion. The merger talk did not come out of nowhere, because allegedly, Elon has already spoken with colleagues about combining the companies. One current Tesla employee reportedly told CNBC that many workers inside the EV company have expected this kind of deal for years, and that staff talk about it openly. Tesla and SpaceX already share boards, engineers, cash, batteries, trucks, and AI infrastructure Relationships between Tesla and SpaceX have many different aspects and are quite strong. Elon Musk serves on the boards of both firms. Another individual, who is a board member for both, is Ira Ehrenpreis, who founded DBL Partners. Kimbal Musk, Elon's brother, is currently on the Tesla board and was previously a SpaceX director. Additionally, Antonio Gracias and Steve Jurvetson were board members of Tesla before switching their allegiance to SpaceX. Staff relationships are rather evident too. For example, Charles Kuehmann is vice president of materials engineering for both companies. He moved from Apple ten years ago. Since then, he works on solving engineering challenges in large-scale hardware projects. This type of job is relevant because material science, heat exchange, weights, battery safety, manufacturing pressures, and hard engineering problems cannot be overcome with an inspiring speech. Financial relations between SpaceX and Tesla cannot be denied either. In January, Tesla said that it had invested $2 billion in xAI, Elon's artificial intelligence company. One month later, SpaceX and xAI merged, thus making Tesla's investment in xAI stock linked to SpaceX. Therefore, Tesla established financial connection with SpaceX before any stock market listing. SpaceX also buys a lot from Tesla. According to its prospectus, in 2024 and 2025, the company plans to spend $697 million to buy Tesla Megapack batteries, which will power the data centers owned and operated by xAI around its Colossus facility in Memphis, Tennessee. This is not merely an internal order but hundreds of millions worth of battery hardware for AI compute capacity. According to the prospectus, SpaceX will also spend $131 million in purchasing Tesla Cybertrucks at listed retail prices. Lawyers said a Tesla-SpaceX merger would probably not create a big antitrust fight because the companies do not mainly sell the same thing. Shareholders would have questions: Which company becomes the parent? What exchange ratio would investors get? Who decides the correct value for each side? Those are not small details when one company is valued at $1.25 trillion and the other is worth around $1.6 trillion. For SpaceX, Elon controls about 85% of the voting power there, so he controls every major company decision. SpaceX receives billions in military funding from Trump administration In an attempt to create a secure military satellite network, the United States Space Force provided SpaceX with a $2.29 billion deal to develop an architecture known as the Space Data Network Backbone (SDN Backbone). This new architecture will interconnect military sensors, missile-warning systems, tracking capabilities, and weapon delivery platforms. The plan is to allow fast, secure, and high-capacity data transfer between platforms and sensors with minimal latency. The space force hopes for a prototype of the architecture by 2027. The SDN Backbone project has connections to missile defense projects that have been developed under the Golden Dome project from the Trump administration. The network is aimed at making sure that the data gathered from the missile warning and tracking sensors are relayed to interceptors in near real time. Cryptopolitan earlier reported that Elon Musk will get $1 trillion if he achieves certain things at SpaceX. These things are; attaining market capitalization of $7.5 trillion and settling more than 1 million humans on Mars. Similarly, Tesla has a large pay plan for Elon Musk, which is composed of 12 stages depending on market cap and operational achievements.
Bastrop County backs SpaceX application for state sales tax incentive
After more than an hour of community feedback on data centers Bastrop County commissioners approved a measure that will support SpaceX's application for state tax breaks through the Texas Enterprise Zone Program. The details SpaceX plans to invest $855 million to expand production of next-generation Starlink user terminal kits at its Bastrop County facility, said Damien Barrera, SpaceX's senior tax manager. He said the company plans to produce more than 10 million kits by the end of 2026. Bastrop County Commissioners approved designating SpaceX as an Enterprise Project, which makes the company eligible to apply for state tax incentives under the Texas Enterprise Zone Project. If SpaceX is selected for the program, it will receive a per-employee refund on state sales tax if it meets program requirements. The company is seeking Triple Jumbo Project incentives, which require a company to create at least 500 jobs and invest at least $250 million. Qualified companies could receive $7,500 in tax breaks per employee, up to $3.75 million. SpaceX currently has more than 1,500 employees in Bastrop and has already met its employment requirements, such as hiring at least 35% local employees, Barrera said. Along with ramping up production, the funding would support the creation of North America's largest cleanroom and improvements to infrastructure at the Bastrop facility. What happened Bastrop County Commissioner Butch Carmack said the nomination did not provide any local tax abatement to the project. "We haven't given them anything. They haven't asked for anything," Bastrop County Commissioner Gregory Klaus said. "We don't have any say on any commercial businesses coming into the county." Precinct 2 Commissioner Clara Beckett added that counties have very little ability to regulate businesses within their jurisdictions if they meet legal requirements. She reiterated that the May 26 vote did not approve local tax breaks or permits, but did make it possible for SpaceX to apply for the state program. The item was approved unanimously. What they're saying Though the item did not specifically mention data centers, most speakers spoke against data centers broadly or against tax abatements for them specifically. Many also called for a moratorium on data centers. "We are in a drought. We do not need anybody coming in here taking our water," said Rita Ward, who identified herself as a 95-year-old Bastrop resident and lifelong Texan. Ruth Todd, Democratic candidate for Bastrop County Justice of the Peace Precinct 2, asked the court to protect Bastrop from "billionaires who see Bastrop as cheap land." "While families are struggling with rising property taxes, rising electric bills, and rising costs everywhere they turn, this court is considering a tax abatement to a billionaire who does not need it," she said A handful of individuals spoke in support of data centers, citing tax benefits for the county and school district, questioning the political ties of the other speakers or expressing concerns with the accuracy of the detractors' claims. Separately, the court approved setting a June 8 public hearing to renew the county's tax abatement policy.
SpaceX's tiered IPO lockup aims to build a ladder, not a cliff
SpaceX's Starship 39 rocket launches on May 22 during a test flight in Texas. Ronaldo Schemidt/Getty Images The largest planned IPO on record will not have the typical 180-day lockup for existing investors. SpaceX has built a tiered, rolling release schedule designed to meter -- not block -- sales by its longest-tenured shareholders. While the approach is mainly aimed at tempering stock price volatility, staggered lockups have not always kept a hot, newly listed stock's price high. Facebook's 2012 IPO's lockup, for example, ran 91 to 181 days, by the end of which shares had fallen more than 40% off their offering price (they went on to recover). Moreover, SpaceX will be the first mega-IPO to qualify for the Nasdaq 100's new fast-entry rule, letting it join the index after only 15 days of trading. This will force passive index funds tracking the benchmark to buy shares, and experts anticipate it will put even more pressure on SpaceX's stock price. Sign up for The Daily Pitch newsletter Subscribe "It's going to attract larger institutional investors, as well as index funds, sooner than it would of any IPO of this nature," said Jawad Hussain, senior managing partner of advisory firm Highspring. "Well, I can't say 'this nature' because no such things exist in the market ... because of the size and sheer scale of this, they really need all of these accelerants for the stock to perform." As outlined in the company's IPO prospectus, SpaceX investors will be able to sell up to 20% of their stock starting on the second full day of trading after the company releases its first earnings report after the end of Q2. There's also a performance-based trigger: Investors can sell an additional 10% if the stock trades 30% above its IPO price for at least five of the 10 trading days after the earnings are released. "I don't know if any of the largest [investors] would want to sell. The fact that they're allowing up to 20% gives them some liquidity," said Mike Alves, founder of VIDA Vision Fund and an investor in SpaceX and xAI. "That said, they have been long-term investors, and there's a huge gain to that position, so I'm sure they want to take some off the table." But there's a layered lockup structure in place, too, irrespective of where the stock is trading. Investors can sell in increments of 7% after 70, 90, 105, 120 and 135 days following the public listing. An additional 28% unlocks after SpaceX reports Q3 earnings. The remainder unlocks at 180 days post-IPO. As for Elon Musk -- who controls 85.1% of voting power in his company -- he's sitting out the sale for quite a bit. He and unnamed "certain significant investors" have agreed to a 366-day lockup period, per the IPO filing. This article originally appeared on PitchBook News
SpaceX wins $2B contract to produce satellites for Space Force
The Pentagon taps Elon Musk's Starshield division to build 600 tracking satellites under the Golden Dome missile defense program. SpaceX just locked in what might be its most consequential government deal yet: a contract worth approximately $2 billion to build a constellation of 600 satellites for the US Space Force. The satellites will track missiles and aircraft as part of the Pentagon's Golden Dome program, a space-based missile defense system inspired by Israel's Iron Dome. The work will be handled by Starshield, SpaceX's military-focused satellite division. Golden Dome is the Trump administration's flagship missile defense initiative, officially announced in 2025. The specific capability SpaceX is building is called the air moving target indicator, or AMTI. It's designed to detect and track objects moving through the atmosphere, whether that's a ballistic missile or a hostile aircraft. Deploying 600 satellites for this purpose creates a persistent surveillance mesh that's far harder to evade or disable than ground-based radar systems. The target for full operational capability is January 2029. In January 2026, the company executed $739 million in launch task orders tied to the National Security Space Launch Phase 3 program, the Pentagon's framework for getting classified and sensitive payloads into orbit. Then in April 2026, SpaceX secured a $57 million contract for satellite-to-satellite communications demonstrations, essentially proving that its spacecraft can talk to each other in orbit without routing signals through ground stations. That crosslink capability is foundational to making a constellation like Golden Dome work in real-time combat scenarios. SpaceX remains private, so there's no ticker to watch. A $2 billion satellite contract on top of hundreds of millions in launch orders positions Starshield as a meaningful revenue center in its own right. The crosslink demonstration contract is also notable: satellite-to-satellite communication is a prerequisite for missile tracking and secure military communications. Heavy reliance on government contracts means exposure to budget politics, procurement delays, and the whims of whoever occupies the White House next. A $2 billion satellite program with a hard 2029 deadline leaves very little margin for the kind of bureaucratic friction that typically plagues Pentagon programs.
Anthropic releases security-guidance plugin for Claude Code to catch vulnerabilities in real time
The new plugin scans for roughly 25 dangerous code patterns using regex-based warnings, letting developers fix security flaws without leaving their coding session. Anthropic just shipped a tool that essentially acts as a security-conscious co-pilot sitting inside your terminal. The company's new security-guidance plugin for Claude Code automatically reviews code as it's generated or edited, flagging common vulnerabilities before they ever make it to production. The plugin, available by default through the Anthropic marketplace, uses regex-based pattern matching to catch approximately 25 dangerous code patterns. Think unsafe loading practices, hardcoded secrets, and the kinds of mistakes that make penetration testers smile. When it spots something, Claude prompts corrections within the same coding session, meaning developers don't need to context-switch to a separate security tool. The security-guidance plugin runs inside Claude Code's terminal-based environment, reviewing code in real time as it's written or modified. The pattern detection covers hardcoded API keys, insecure deserialization, improper input validation, and other vulnerabilities that account for a disproportionate share of real-world breaches. Because the plugin integrates directly into the coding session, Claude can suggest fixes immediately. The developer sees the warning, reviews the suggested correction, and moves on. The security-guidance plugin isn't a standalone bet. It fits into Anthropic's broader Claude Code Security initiative, which launched as a limited research preview on February 20, 2026, before expanding to a public beta for Enterprise customers by late April 2026. The full Claude Code Security system goes well beyond regex pattern matching. It leverages advanced AI reasoning, powered by models like Opus 4.6, to conduct comprehensive codebase scans that mimic how human security researchers actually think about vulnerabilities, surfacing subtle logic flaws and data-flow issues that traditional static analysis tools routinely miss. Anthropic says the system has identified over 500 previously unknown high-severity issues in open-source codebases, validated through internal testing and competitions. The system also suggests targeted patches for human evaluation, keeping developers in the loop on final decisions. Following the February 2026 announcement of Claude Code Security's research preview, stocks of major cybersecurity vendors declined, reflecting investor concerns about the potential disruption posed by AI-native security tooling built directly into the developer workflow. For developers, the immediate calculus is straightforward. If you're already using Claude Code, turning on security guidance is essentially free incremental protection. The regex-based plugin catches the low-hanging fruit, and the broader Enterprise security features handle deeper analysis for teams willing to pay.
Musk discussed merging SpaceX and Tesla as rocket company prepares Nasdaq debut | investingLive
The world's two most Musk-adjacent companies may eventually become one, and insiders say the conversation is already happening. Elon Musk has discussed combining SpaceX and Tesla with colleagues, CNBC reports, as SpaceX prepares its Nasdaq debut with a $1.25 trillion private market valuation. Summary: Source: CNBC, citing people familiar with the matter; SpaceX IPO prospectus Elon Musk has discussed the possibility of merging SpaceX and Tesla with close colleagues, according to people familiar with the conversations, rekindling long-running speculation about the billionaire's ultimate ambition to consolidate his industrial empire into a single entity. The chatter is surfacing as SpaceX prepares to kick off its Wall Street roadshow next week ahead of an expected Nasdaq listing in just over a fortnight. The rocket and satellite company secured a private market valuation of $1.25 trillion earlier this year following its merger with Musk's artificial intelligence venture xAI, which also absorbed social media platform X. Tesla, meanwhile, carries a market capitalisation of around $1.6 trillion, meaning a combined entity would rank among the most valuable companies ever assembled. The strategic overlap between the two businesses is substantial and growing. Both are deploying capital into artificial intelligence at an accelerating pace. SpaceX directed more than three-quarters of its $10.1 billion in first-quarter capital expenditure toward AI infrastructure, while Tesla has flagged capex topping $25 billion this year, roughly triple its prior level. Shared challenges around power and compute constraints have driven regular collaboration between the two workforces, and a vice president of materials engineering serves both companies simultaneously. The financial entanglement runs deep. SpaceX's IPO prospectus discloses $697 million in purchases of Tesla Megapack energy storage systems in 2024 and 2025 to power xAI data centres near its Colossus facilities in Memphis, along with $131 million spent on Tesla Cybertrucks. Tesla, in turn, invested $2 billion in xAI in January, stakes that converted into SpaceX holdings when the merger closed the following month. Musk holds 85% voting control at SpaceX, meaning board resistance to any combination would be negligible. The more complex obstacles are financial: determining which entity would serve as parent, how a stock swap would be structured, and how each company's minority shareholders would be treated. Legal experts cited in the original report see limited antitrust risk but significant shareholder complexity. Musk's own compensation arrangements at both companies give him a direct personal incentive to pursue scale. His SpaceX pay is linked to a $7.5 trillion market cap target alongside a Mars colonisation milestone, while Tesla's board approved a multi-tranche pay plan tied to market cap and operational gains. A merger that supercharged the combined valuation would accelerate progress toward both. --- Tesla shares edged higher in after-hours trade following the report, reflecting market appetite for a combination that could create a single entity spanning rockets, satellites, EVs, AI and energy storage. A merger would raise immediate questions around valuation, structure and the terms of any stock swap, with SpaceX's private market valuation of $1.25 trillion sitting against Tesla's current market cap of around $1.6 trillion. Musk's 85% voting control at SpaceX removes one major obstacle, but Tesla minority shareholders would face a more complex calculus. The overlap in AI capital expenditure, with SpaceX directing over three-quarters of its first-quarter capex toward AI and Tesla tripling its own spend this year, underpins the strategic logic even if the execution remains deeply uncertain.
SpaceX Starship Faces Herculean Tech Hurdles In Race To Moon Landing
Despite acing a flight test of its newest generation Starship super-capsule, SpaceX still has to speed through an obstacle course of tech challenges, stretching out across 380,000 kilometers, to win the race to land astronauts around the impact craters of the Moon, say leading North American space scholars. Stepping up pressure on SpaceX to whizz through a progression of Herculean-level leaps in space technology, the White House has issued an executive order that mandates "returning Americans to the Moon by 2028." And while SpaceX once held an exclusive commission from NASA to shuttle its astronauts down to the lunar surface, originally by 2024, delays in perfecting the Starship have triggered the space agency to reopen the Moon landing competition. SpaceX is now vying with Blue Origin to complete its Moon lander first, with both American spacecraft designers keeping close tabs on China's parallel quest to speed its taikonauts to the silver and black orb before the end of the decade. The clock is ticking on this three-power competition, a curious redux of the first race to the Moon by the rival American and Soviet Russian space superpowers. Since SpaceX founder Elon Musk webcast the sensational 12th flight test of the Starship, aerospace engineers forming Blue Origin's lunar lander division, and their counterparts across China, are undoubtedly replaying the flight, frame by frame, to measure up their competing advances, says Brian Hurley, a world-leading expert who chronicles the rapid-fire expansion of the modern space sector, and its rippling effects across the spheres of national security and international affairs. Blue Origin's lunar teams "would not be watching as spectators," says Hurley, founder of the influential think tank New Space Economy, which also publishes a digital magazine. "They would be watching as competitors, engineers, and strategic planners." "Every Starship test provides public information about SpaceX's progress, weak points, cadence, risk tolerance, and likely schedule pressure," Hurley told me in an interview. "Blue Origin's lander architecture is different, but SpaceX's pace matters to Blue Origin because it shapes NASA expectations, political expectations, and the perceived race between commercial lunar-lander providers." China's spacecraft developers, he adds, are just as likely to parse the Starship flight footage for clues and details on the ship's next-generation design and engineering. "A Starship test is not only a U.S. commercial event; it is also open-source technical intelligence." "Chinese teams working on crewed lunar landing systems, heavy-lift launchers, reusable boosters, and new crew spacecraft would almost certainly study the flight to assess both the promise and the remaining weaknesses of the Starship approach." "That does not mean China would change its architecture based on one flight," Hurley says, "but it would feed into their assessment of U.S. progress toward returning astronauts to the lunar surface." Blue Origin, which like SpaceX has received a NASA commission to develop a Moon lander, and its counterparts across the Chinese government's spacecraft development sector, are also racing to perfect their own lunar modules, patterned after the Apollo program's of a generation ago, and tiny compared to SpaceX's Titan-size Starship. The Starship is not just the most powerful spacecraft ever designed on Planet Earth, configured to hold 100 astronauts on every future flight to Mars, but also features world-leading technologies that place it uniquely in a new class of hyper-ship. With constant, iterative changes in the design of every spacecraft, Elon Musk, a dot-com tycoon before creating SpaceX, and his army of engineers are all driven by the Silicon Valley mantra "Move fast and break things." But even as the starting gun is fired on the new-millennium Moon marathon, SpaceX still has to ace a succession of space-tech breakthroughs that have never before been tested, ranging from refilling the Starship with cryogenic fuel while the ship and tanker are speeding around the planet at 28,000 kilometers per hour, and then again in orbit around the Moon, and touching down amid the meteor strike-created craters near the orb's South Pole. Did the new demo flight of the Starship, with the picture-perfect soft splashdown of its capsule in the Indian Ocean, position SpaceX to take the lead in rocketing NASA spacefarers to the gleaming globe by 2028, ahead of their Chinese rivals? "I think that schedule is optimistic," says Robert Zubrin, the pre-eminent American aerospace engineer who designed an early prototype of NASA's Space Launch System, the cutting-edge rocket that just sent four Allied astronauts on a flight around the Moon. "But I do think Starship will be operational as a fully reusable heavy lift Earth to orbit system by that time [2028], with revolutionary implications for the exploration and development of space," Dr. Zubrin told me in an interview. But the design and tech wizards at SpaceX, he says, "face a number of engineering challenges." "First is development of refueling tankers." "Then is orbital refueling of Starship to leave LEO," or low Earth orbit. "Then is orbital refueling of tankers to refuel Starship in lunar orbit." "Then is doing all this at a fast enough tempo (they will need 10 to 15 Starship launches to do all this) so that the propellant does not boil away before they can get the mission done," Zubrin says. Besides designing vanguard American spacecraft, Dr. Zubrin has created the globe's foremost masterplan to terraform Mars, or generate an Earth-like biosphere around the Red Planet while restoring its original oceans and atmosphere. SpaceX has incorporated vast portions of the designs and strategies sketched out in Zubrin's masterwork book "The Case for Mars," on transforming Mars onto a second foundation for civilization, into its grand schemes for Mars, including tapping Martian resources to produce rocket propellants for its Starship capsule. The perils awaiting SpaceX on the Earth's ancient silver satellite, Zubrin says, include its shifting topography and sparsely explored surface features. "There is the issue of avoiding blowing a crater in the Moon and shooting up tons of high velocity dust as they land," he says. "Then there is the issue of leveling the lander." "Then there is the issue of moving payloads up and down from the tall Starship to the surface." "Then there are issues associated with the takeoff from the Moon." The very first flight test of the Starship, three years ago at the Starbase center, blasted the launch pad, transforming it into a crater, and there are fears that a landing or takeoff on the Moon's variable surface could trigger a similar catastrophe. The Moon's surface conditions, combined with the extraordinary height of the SpaceX capsule, represent "one of the more important technical risks for using Starship as a lunar lander," says space scholar Brian Hurley. "The concern is not only that the lunar surface may be uneven. It is the combination of Starship's size, landing-leg loads, possible surface slope, loose regolith, rocks, and the effect of engine plumes on the surface." "Apollo's Lunar Module was a much smaller vehicle," he says. "Starship HLS [Human Landing System] is a very different class of lander, so the margin for unexpected surface interaction becomes an important issue." "A very large lander can blast dust, sand-sized particles, and rocks away from the landing zone at high speed. That can affect visibility, sensors, nearby hardware, and potentially the surface under the vehicle itself." "If the landing site is soft, rocky, sloped, or uneven," he warns, "there is also the possibility of uneven leg loading or an excessive tilt after touchdown." Yet there's an array of technology approaches to reduce the danger. "The first is conservative landing-site selection: using high-resolution orbital mapping to pick very flat, relatively rock-free areas." "The second is autonomous hazard detection and avoidance, so the vehicle can identify unsafe terrain during descent and adjust its touchdown point." NASA and SpaceX can also mitigate the dangers by minimizing the touchdown velocity. "Starship HLS has been expected to use design features different from the Earth-return Starship," Hurley explains, "because landing on the Moon creates a very different set of problems." "Landing without a prepared pad is not necessarily a show-stopper," Hurley predicts, as a one-time solution. "If Artemis becomes a continuing program rather than a series of isolated sorties, prepared landing zones become much more important." For a sustained lunar base, landing pads will likely shift from being optional to absolutely essential infrastructure. SpaceX could use its first, uncrewed landing demo on the Moon to deploy a team of autonomous robots to build a landing zone or to position a prefabricated landing pad for the next human flight, Hurley says. In a fascinating paper that he co-authored with other spaceflight visionaries across NASA and inside SpaceX, titled "Accelerating Martian and Lunar Science through SpaceX Starship Missions," Professor Kip Hodges says: "SpaceX is developing the Starship vehicle for both human and robotic flights to the surface of the Moon and Mars." Flotillas of massive Starships will enable the delivery of fleets of mobile robots, adds Hodges, one of the top space scholars in the U.S. and founding director of the School of Earth and Space Exploration at Arizona State University. While SpaceX's longstanding focus has been fixed on Mars, he says, "flights to the Moon provide the opportunity to test and demonstrate Starship systems closer to Earth prior to the longer journey to Mars." "More frequent flights to the Moon than to Mars are feasible due to orbital dynamics, and thus significant capabilities can be developed and tested at the Moon prior to Mars missions." Besides speeding brigades of robots to off-world destinations, Hodges says, Starships "will also carry hardware needed to support the human base including equipment for increased power production, water extraction, LOX/methane [rocket fuel] production [and] pre-prepared landing pads." Upon landing, Professor Hodges and the SpaceX engineers say, spacefarers could live on the Starship, the first of identical spacecraft-turned-skyscrapers that ultimately spread out across the solar system. Brian Hurley says that means the first experimental touchdown of the robotically piloted Starship on the Moon could carry a prefabricated landing platform, to be positioned by a squad of robots, while the ship provides living spaces for scores of future astronauts. Professor Hodges tells me in an interview that, in light of the rush to triumph in Moon Race II, NASA might even delay the assembly of lunar landing platforms until after the first American astronauts reach the crater-surrounded finishing line. "I don't think they absolutely need a landing pad for Starship or Blue's lander," says Hodges, who has teamed up with NASA to help train Allied astronauts on surface operations. "I think there is enough urgency to not be beaten to the Moon by the Chinese that they want to get Americans there as quickly as they can." Spacecraft designer Zubrin says that SpaceX could completely avoid the looming dangers and complexity of landing a Starship on the alien terrain of the Moon by rapidly prototyping and launching a miniature version of the Starship. This mini-Starship, which he calls a Starboat, would feature just one-fifth the mass of the mothership, and act as a shuttle to transport astronauts from an orbiting Starship down to the surreal polar region of the Moon. Many of the Herculean tech challenges now facing a Starship descent onto the Moon "would be much, much, easier to solve if the Starship were coupled with a mini-Starship, or Starboat, that could serve the function of lunar orbit to surface ferry." "The big Starship would never have to land." "Instead it could be used to refuel the Starboat from orbit." In the future, Dr. Zubrin says, "A similar Starboat could also serve as a ferry from Mars orbit to the surface."
SpaceX IPO Gets Another Greenlight Toward Faster Index Inclusion
FTSE Russell adopted a rule change that will speed the addition of newly listed large-cap companies to its main indexes, weeks ahead of SpaceX's expected record-breaking initial public offering. Under the policy announced late Tuesday, IPOs with investable market capitalizations above the cutoff ...
Jim Cramer previews SpaceX's IPO: 3 catalysts to watch and 1 big reservation
Still, he pointed to three potential near-term catalysts for the stock: Starship, the company's compute deal with Anthropic, and its partnership with Cursor. CNBC's Jim Cramer said he is cautious on SpaceX's upcoming initial public offering, but pointed to three near-term catalysts that could materially sweeten the investment case. "Purely from the numbers, it's very difficult to justify giving SpaceX a $2 trillion valuation," the "Mad Money" host said, referencing a reported valuation target. Elon Musk's SpaceX, which is expected to begin trading on June 12, released its IPO prospectus last week. The filing showed a business generating less than $20 billion in annual revenue while posting steep losses as it invests heavily in artificial intelligence infrastructure and its Starship rocket program. "At $2 trillion, SpaceX would be trading at roughly 100 times trailing twelve months sales, which is crazy expensive" Cramer said. When determining whether the company deserves this lofty valuation, Cramer said investors should focus on near-term developments that could improve growth and profitability. The first catalyst, according to Cramer, is Starship, SpaceX's next-generation reusable rocket. The company completed its 12th test of Starship on Friday; there were no people or cargo for customers. However, in its prospectus, SpaceX said it expects Starship is to begin payload delivery in the second half of 2026. "If SpaceX can really make that deadline, then it'll be a major boon for their slowing space division," he said. Cramer also highlighted SpaceX's new compute deal with AI startup Anthropic. Under the agreement, Anthropic will pay SpaceX roughly $1.25 billion per month through 2029 to lease computing capacity from the company's Memphis data centers. The "Anthropic deal alone dramatically changes the economics of the AI division, potentially transforming it from a money-pit to a money-maker," Cramer said. Last year, the AI division generated just $3.2 billion in revenue, but it could see an incremental $15 billion in revenue per year starting almost immediately. Cramer's third catalyst to watch is SpaceX's deal with AI coding startup Cursor. SpaceX said the partnership will combine Cursor's coding tools with SpaceX's computing infrastructure to improve AI products such as Grok and potentially develop new enterprise offerings. The agreement also gives SpaceX the option to acquire Cursor later this year for $60 billion. A potential acquisition of Cursor "would boost xAI's status amongst the leading AI labs," Cramer argued. Even with those opportunities, Cramer said investors should remain disciplined as excitement builds around the IPO. He urged investors to weigh SpaceX's current fundamentals, realistic near-term opportunities, and valuation before rushing into the stock. "Historically, it's rarely paid to bet against Elon Musk, but at the same time, SpaceX is far from perfect and the stock's almost certainly going to be expensive," he said. "Even if you want to own it, you might not want to buy it right away, but then again, that depends on where they price the deal."
SpaceX IPO Gets Another Greenlight Toward Faster Index Inclusion
FTSE Russell adopted a rule change that will speed the addition of newly listed large-cap companies to its main indexes, weeks ahead of 's expected record-breaking initial public offering. Under the policy announced late Tuesday, IPOs with investable market capitalizations above the cutoff for the Russell Top 500 will qualify for so-called after their fifth trading day. Previously, eligible companies were assessed during quarterly reviews. "The introduction of a fast entry mechanism for sizable IPOs enables the indexes to reflect significant market developments more promptly," Arne Noack, head of equity and multi-asset indices, Americas at FTSE Russell, ...
The SpaceX S-1: Building the Infrastructure Layer for Space and AI
Understanding the SpaceX business and how Starship, Starlink, and xAI become more connected than they look I'm Tanay Jaipuria, a partner at Wing and this is a weekly newsletter about the business of the technology industry. To receive Tanay's Newsletter in your inbox, subscribe here for free: Hi friends, SpaceX filed its S-1 this week, ahead of what will likely be the largest IPO ever (~$75B raised at a reported $1.75T valuation). SpaceX is a unique and inspiring company. It's not often you see a mission statement on an S-1 include "to make life multiplanetary, to understand the true nature of the universe, and to extend the light of consciousness to the stars". SpaceX on the face of it is three companies combined together: a rocket launch business, a satellite internet business, and an AI lab (after the xAI merger). But the way I've come to think about SpaceX (or at least how SpaceX wants to be thought of) after reading the filing is less as a rocket company with an AI lab attached, and more as the physical infrastructure layer for the AI and space economy. I'll walk through how the three businesses work today, and how they could be far more connected in the future than they look. In this piece, I'll cover: SpaceX reports in three segments: Space, Connectivity, and AI. They're wildly different businesses on one balance sheet, so it's worth taking each on its own. Connectivity is the star today, growing fast and very profitable, essentially helping fund the rest. Space looks like a loser on operating income but is actually EBITDA-positive once you add back the Starship R&D and depreciation. AI is a deep loss on every line but more on that later. SpaceX was founded in 2002. The early history may be familiar to some: Falcon 1 reached orbit in 2008 (the first privately built liquid-fueled rocket to do so), they landed a booster back on Earth in December 2015, and by 2017 they were routinely reusing Falcon 9 boosters. Reusability has been key to the rest. It dropped SpaceX's launch cost to about $2,700 per kilogram, roughly 85% below the historical industry average of $18,500, and that cost collapse is what made everything downstream possible. SpaceX began as an external launch provider. The early customers were NASA (Commercial Resupply from 2008, then crew), commercial satellite operators, and the Pentagon, and those contracts funded the company for its first decade and a half. Starlink only started launching in 2019. So the business was built on outside demand, and then internal Starlink deployment grew on top of it until it became the majority of flights. SpaceX flew 96 Falcon launches in 2023, 134 in 2024, and 165 in 2025. But most of those weren't for paying customers. Customer launches were 33, 45, and 43. The rest (63, 89, then 122) were internal: mostly Starlink deployments and some development tests. The chart below highlights this shift. The launch business is now overwhelmingly SpaceX flying for itself, and the internal share keeps climbing (74% of launches in 2025, up from 66% in 2023). They built a launch business for other customers and used the same capability to deploy their own constellation. The launch business and capability is the railroad of sorts that made everything else possible. Still, the Space business makes over $4B in revenue for external launches. While some of that is government development contracts that aren't tied to specific launches, one rough proxy is that at 43 external launches in 2025, each launch is worth about $95M in revenue to them. But the thing to note is that for internal launches that deploy Starlink, SpaceX doesn't book any Space-segment revenue. It capitalizes the launch cost inside the Connectivity segment and depreciates it over time. So Space-segment revenue only reflects the revenue from the ~1/4 of launches which are external. The filing notes this: despite a rising launch cadence, Space has "relatively lower revenue scale and revenue growth" because its results don't reflect the internal launches that are the foundation of the company. Financially, Space is the smallest segment and currently a money-loser. Revenue was $4.1B in 2025, up only 7.6%. It swung to a $657M operating loss (from a $21M profit in 2024). The reason is Starship. R&D in the segment jumped 64% to $3B as they poured money into the next vehicle, and in Q1 2026 alone Starship R&D was $930M. So the cash from launching satellites is being plowed straight into the next generation rocket that's supposed to make the future vision achievable. Connectivity represents the Starlink business, and it's the segment that actually prints money. As I mentioned above, it is only possible with the launch flywheel. Cheap, reusable, high-cadence launch is what lets you put up (and constantly replenish) a constellation of ~9,600 satellites in low-Earth orbit. No one else can deploy mass to orbit at that cost, which is why no one else has a constellation at this scale. The S-1 notes SpaceX has launched more than 80% of all mass to orbit globally each year since 2023. The subscriber story of Starlink shows signs of a landgrab strategy. Starlink went from 2.3M subscribers (2023) to 4.4M (2024) to 8.9M (2025), and 10.3M by Q1 2026. Monthly ARPU fell the whole way: $99, then $91, then $81, and down to $66 in Q1 2026. That ARPU decline is somewhat deliberate and represents both the push into lower-income countries and additional cheaper plans. Overall, the financials of this segment are very strong. Connectivity did $11.4B in revenue in 2025, up 50%, with $4.4B in operating income. That's a ~39% operating margin on a business growing 50%. Q1 2026 revenue was $3.3B, up 32%. Its a profitable, fast-growing, hard-to-replicate utility and has a big TAM ahead of it. And Musk sums up the importance of Starlink to the overall company well: The AI segment is xAI, which was founded in 2023 and folded into SpaceX in early 2026 (the merger closed February 2). It houses Grok, the X platform, data licensing, and the compute infrastructure. There are two things going on with this segment: the shift of the business from an ads business when X was bought to more of a subscriptions based business, and the additional revenue that comes from Grok (via API, etc) which is still relatively small compared to leading AI labs. On the surface, it looks rough. "AI" revenue (which includes ads) was $3.2B in 2025, up only 22%, with a $6.4B operating loss as R&D rose 331% to $5B. In Q1 2026 it was worse on a growth basis: revenue of $818M, up just 12.5%, with a $2.5B operating loss, and ad revenue continued to fall in Q1. Below is a rough overview of the current state of the AI segment. So if you stop at the income statement presented, the AI segment is a slow-growing, deeply unprofitable drag on the company. But that's the picture before the recent deals which change things. Two things happened in May 2026, right before the filing, that paints SpaceX in a somewhat different light. The first is the Anthropic deal. SpaceX signed Cloud Services Agreements with Anthropic for compute capacity across its Colossus and Colossus II data centers. Anthropic agreed to pay $1.25B per month through May 2029, with capacity ramping at a reduced fee in May and June 2026. Either side can terminate on 90 days' notice. The entire AI segment did $3.2B in 2025. So this one contract, fully ramped at ~15B/yr, is roughly 5x the segment's trailing revenue. The second is the Cursor deal. In April 2026, SpaceX signed a compute and option agreement with Cursor. Under the compute agreement, SpaceX gives Cursor GPU capacity and they collaborate to improve Grok and potentially jointly develop new models. Under the option agreement, SpaceX has the right (not the obligation) to acquire Cursor outright at a $60B implied equity value, exercisable in a 30-day window after the IPO (or by September 30, 2026). SpaceX frames coding as one of the best use cases for AI because it generates high-quality, verifiable data and constant inference demand. Cursor's developer interaction data (prompts, iteration cycles, architecture decisions) feeds back into model training, including Grok. And if they exercise the option, Cursor becomes an owned application sitting on top of their own compute and own models. If SpaceX terminates the option, Cursor is owed a $1.5B termination fee plus an $8.5B deferred services fee. So they've effectively pre-committed to either buying Cursor or paying a large breakup cost. Put together, these deals give the AI segment a much clearer shape. Three layers that are compute, model/intelligence, and apps. Compute is the base, and right now it's the most valuable part. SpaceX built Colossus and is training Grok 5 on Colossus II. The interesting move is that they have shown willingness to lease the spare capacity. Anthropic is the first big tenant but there may be more. Models is Grok, trained in-house, differentiated by real-time integration with X data. This is also where the Cursor collaboration sits, jointly developing models and feeding coding data back into Grok's training. Apps represents X and the Grok app today, and is the layer that the Cursor option can also bolster. If they exercise, Cursor becomes an owned coding app running on their own models and compute. They're also building Macrohard with Tesla, an agentic platform meant to emulate digital workflows. At the consolidated level, 2025 looked like this: $18.7B in revenue, a $2.6B loss from operations, and $6.6B in Adjusted EBITDA. The capex split is quite stark, compared to the revenue split. Of the roughly $10B SpaceX spent in Q1 2026, about $1B went to Space, $1.3B to Connectivity, and $7.7B to AI. For the full year 2025, around 60% of capex went to AI. The picture of spend and profitability relative to revenue growth isn't great, which is why I think the Anthropic (and Cursor deals) are critical. Annualize the Q1 2026 quarter and SpaceX is running at about $18.8B. Grow each segment off that base for the rest of the year and you conservatively get to roughly ~$22B run-rate by Q4. Then layer in Anthropic and Cursor. Anthropic at the full $1.25B per month is $15B annualized. Cursor could generate another $3B-$4B in revenue (it's at ~$3B today and growing). Stack those on the organic base and you land around a $40B to $41B run-rate exiting 2026, on a relatively conservative estimate of organic growth and not assuming more compute partners. At least partially this helps ground the $1.75T valuation in some more reasonable sense. Compared to a ~20B run-rate business growing relatively slowly, it now looks like a ~40B+ run-rate business growing over 100% y/y albeit because of one compute deal. More importantly, it also shows Elon's willingness to make sure that he monetizes his spare compute, even if internal products don't take off which helps alleviate some of the concerns around the high Capex. Despite the improving AI segment in the near term, it still looks bolted on to the Space and connectivity business. Orbital AI compute is where that changes and the reason these are all in one company becomes more clear. One way to think about SpaceX may be less a rocket company with an AI business attached, and more of a physical infrastructure company for the AI age. The launch business lowers the cost of accessing orbit. Starlink proves SpaceX can operate distributed infrastructure in orbit at global scale. The AI segment creates the demand for compute. Orbital AI compute are where those three pieces converge. What is orbital AI compute you may wonder? Satellite constellations that act as data centers in space, using solar energy for power and the space environment for cooling. SpaceX expects to start deploying these as early as 2028. The launch (Space, Starship) segment allows SpaceX to put that much mass in orbit cheaply. The satellite expertise from Connectivity gives them some of the know-how to do so (and frankly helps fund some of it), because orbital compute is basically the Starlink playbook pointed at a different payload. And the AI segment is what monetizes that compute, either by selling that compute or using it in models or application. The bottleneck for terrestrial AI is power and cooling. In orbit you get abundant solar and free cooling, if you can get the mass up cheaply and move data back down. SpaceX is arguably the only entity on Earth today that can pull this off, given their Space segment and know-how from Starlink. It is interesting that SpaceX's own TAM slide puts it at $28.5 trillion, and $26.5 trillion of that is AI, highlighting how important the orbital data centers may be into unlocking the AI TAM (thought SpaceX still needs to work on the AI demand piece). There's also a bigger vision in the filing, which is that Starship in the future could be capable of landing massive cargo on the Moon which then opens up factories on the Moon could manufacture millions of AI compute satellites using lunar resources and deploy them farther into space. The future markets they list include space manufacturing, lunar and Martian energy production, and asteroid mining. SpaceX's future vision all hinges on Starship. The filing even says so directly: the Space growth strategy "depends on the successful development of Starship at scale." Falcon is proven. Falcon 9 carries about 23 tons to LEO, has flown roughly 620 times with 99%+ success rate. Falcon Heavy carries about 64 tons. But it won't allow SpaceX's full ambitions. That requires Starship Starship V3 is designed to put 100 tons into orbit fully reusably, with aircraft-like turnaround, and future versions aim to double that. This is important for two reasons: So what's the current status you may wonder? They've run 11 flight tests so far, with a 12th scheduled that debuts the next-generation vehicle and Super Heavy booster. They've already pulled off the "chopstick" booster catch, where the launch tower's arms catch the returning booster, which is what enables rapid reuse and eventually multiple launches per day. They expect Starship to begin delivering payloads to orbit in the second half of 2026. The investment behind this is large and concentrated. Space-segment R&D was $3B in 2025, most of it Starship, and another $930M in Q1 2026 alone, and arguably makes the financials of the core business (ex AI) look worse than it is. Every ambitious plan of the company runs through Starship. Starlink's next-gen satellites need it now. Orbital compute needs it for cheap mass. The Moon and Mars plans are impossible without it. I've mentioned a few times that SpaceX is unique and inspirational. Nothing makes the scale of their ambition more clear than Musk's pay package. Musk has two performance awards in there, which tell a lot. The first, granted in January 2026, is 1 billion performance-based shares. Both of two conditions must be met for any tranche to vest. First, market-cap milestones across 15 tranches, running from $500B up to $7.5 trillion. Second, and I'm quoting the filing: The Company's establishment of a permanent human colony on Mars with at least one million inhabitants. So even if SpaceX becomes the most valuable company on Earth, the full award doesn't vest until there's a city of a million people on Mars. The second, granted in March 2026 was tied to xAI and is called the "AI CEO Award" Same two-part structure: market-cap milestones (12 tranches, $1.065 trillion to $6.565 trillion), plus a second condition which I quote again: The Company's completion of non-Earth-based data centers capable of delivering 100 terawatts of compute per year. For reference, total US electricity generation capacity is roughly 1 terawatt. So the target written into the filing is space-based compute at something like 100x the entire US power grid. It gives you a sense of the scale of SpaceX's ambition. Musk gets additional shares if and only if the company becomes multiplanetary and/or builds compute off Earth. This has been a long piece and there's a lot more one can say about SpaceX. But to summarize, the launch business is a strategic asset, which is increasingly mostly being used internally to power a strong Connectivity business which is growing fast at 10B+ in scale and very profitable, but is being used to power investment in R&D for Starship and the AI business. The AI business has shown its ability to build infrastructure, which they are now open to leasing, and are trying to build better models to compete at the model and application layers as well. Any forecasts or analysis based on current or the end of 2026 run-rate will make it difficult to justify the ~1.75T valuation, but SpaceX is arguably the only company today that can help build the Space economy and all that that may entail from AI compute to mining materials to making us an interplanetary species. So how much value do you give to that? And to Elon Musk being Elon Musk. In closing, here is a particularly profound segment you don't see in most S-1s: For the entirety of its existence, human civilization has lived on a single celestial body: Earth. The current paradigm, in which human civilization is confined to one planet, exposes humanity to existential threats that are unpredictable and uncontrollable on a planetary scale. By moving beyond the only home we have ever known, we ensure species-level redundancy and that the light of consciousness will not be tied to a single planet subject to the inevitable hazards of a harsh and vast universe. We do not want humans to have the same fate as dinosaurs. If you have any comments or thoughts, feel free to tweet at me.
SpaceX to Become Biggest Bitcoin Holding Company: Grayscale
On May 26, Strategy announced the completion of a buyback of about $1.5 billion worth of its zero convertible notes that are due in 2029 amid turmoil in the crypto market. In the latest research, Grayscale revealed that SpaceX, which currently holds around 18,712 Bitcoins, is expected to become the biggest Bitcoin-holding public company amid the buzz around its IPO valuation. In the research, Zach Pandl, Head of Grayscale Research, stated that, "SpaceX is expected to be the largest public company holding Bitcoin. We believe that the number of diversified businesses holding BTC will increase over time, even if we see the number of DATs declining. Altogether, these dynamics could bolster demand for BTC -- and underpin the value of BTC over time." In the recent filings with the U.S. Securities and Exchange Commission, SpaceX has revealed that it is holding 18,712 Bitcoin (BTC), which is worth around $1.4 billion at the current price. In order to acquire one Bitcoin, SpaceX has paid around $35,320. It means that the company has paid the strong cost basis of $661 million. At the time of writing this, Bitcoin is trading at around $76,000 with a market capitalization of around $1.51 billion, according to CoinMarketCap. Based on the current price, the Bitcoin holding of SpaceX has grown more than double in value. This makes the company one of the biggest corporate holders of BTC. Despite this large holding of BTC, SpaceX is still far behind the biggest BTC holding company in the world, Strategy, led by Michael Saylor. Strategy is currently around 843,738 BTC, whose cumulative value is around $64 billion. In the research, Zach Pandl shared two categories of Bitcoin Treasuries, including Digital Asset Treasuries (DATs) and Diversified Businesses. DATs, such as Strategy, have very small operating businesses compared to the size of their BTC holdings. These companies are mostly relying on Bitcoin access vehicles for public equity investors. On the other hand, many public companies with diverse business operations are adding Bitcoin as a part of their corporate investment strategy. This includes companies like Tesla, Coinbase, and Block. "Over time, we expect to see more diversified businesses holding Bitcoin -- i.e., new corporate adopters -- and fewer pure-play DATs as these firms diversify their business models. Corporate buyers often hold Bitcoin for the same reason as other investors: because it helps diversify portfolios against fiat currency risks. SpaceX and Tesla were relatively early corporate adopters of Bitcoin, but we expect many other forward-thinking businesses to follow in the coming years," stated the research. This research from Grayscale is going to put SpaceX under the spotlight amid the growing number of companies with Bitcoin treasuries. This is coming amid the company's preparation for one of the biggest initial public offerings. Amid the turmoil in the overall crypto market, Strategy has announced the completion of a buyback of about $1.5 billion worth of its zero convertible notes that are due in 2029. For this settlement, Strategy is expected to pay approximately $1.38 billion for them, which is an around 8% discount. This repurchase will cut down its total convertible debt from $8.2 billion to around $6.7 billion, according to the official announcement. Andrew Kang, Chief Financial Officer of Strategy, stated in the official announcement that, "The repurchase of the 2029 converts is both equity and credit positive for our investors and demonstrates our continued focus on liability management. Strategy remains committed to maintaining a robust cash reserve to support the credit quality of our Digital Credit securities. We plan to replenish our cash reserve over time through a mix of Digital Capital, Digital Credit, and Digital Equity sales based on market conditions." In response to this announcement, Peter Schiff, a popular Bitcoin critic, raised a major question in a post on X, saying that "You're running out of cash. What will you sell next to keep the wheels from falling off?"
Bastrop County approves SpaceX incentive nomination amid concerns
BASTROP COUNTY, Texas (KXAN) -- Bastrop County leaders approved a key step Tuesday that allows SpaceX to move forward in seeking tax incentives tied to a major expansion. Bastrop County Commissioners unanimously voted Tuesday to nominate SpaceX's "Bastrop Kit Production Expansion" project as an Enterprise Project under the Texas Enterprise Zone Program. SpaceX plans to invest $855 million to upgrade and expand its existing Bastrop facility, according to SpaceX senior manager Damien Barrera. "This keeps Bastrop and Texas at the center of our Starlink program, and we plan to move all Starlink kit production here to Bastrop County," Barrera said. "The real impact we believe of this investment is in the job creation." County leaders echoed that message, saying it could contribute to economic growth in the area. "It's a state program that they're entitled to -- if they create the jobs they're saying," said Precinct 2 Commissioner Clara Beckett. "So that's why I'm supporting that. We need jobs for our youth." Some residents and advocacy groups criticized the move, raising concerns about potential subsidies. Linda Curtis, executive director of the League of Independent Voters of Texas and a Bastrop County resident, questioned whether a company led by billionaire Elon Musk should receive incentives. "The public does not understand why we need to subsidize the richest man in the world," Curtis said. Curtis also raised concerns about the broader impact on small businesses and cost of living. "That's what people are objecting to -- oh, he gets subsidies [if] my mom-and-pop stores is about to go out of business -- do I get any help? No," Curtis said. "And it ultimately winds up in the cost of living in a place." County Judge Gregory Klaus emphasized that Tuesday's vote does not mean SpaceX is receiving incentives at this stage. "We haven't given them anything," Klaus said. "SpaceX has not asked for anything... they've got to go through our permit and planning department just like everybody else." The nomination now moves to the State of Texas, where officials will determine whether SpaceX qualifies for incentives under the Enterprise Zone Program.
SpaceX Starship Faces Herculean Tech Hurdles In Race To Moon Landing
Despite acing a flight test of its newest generation Starship super-capsule, SpaceX still has to speed through an obstacle course of tech challenges, stretching out across 380,000 kilometers, to win the race to land astronauts around the impact craters of the Moon, say leading North American space scholars. Stepping up pressure on SpaceX to whizz through a progression of Herculean-level leaps in space technology, the White House has issued an executive order that mandates "returning Americans to the Moon by 2028." And while SpaceX once held an exclusive commission from NASA to shuttle its astronauts down to the lunar surface, originally by 2024, delays in perfecting the Starship have triggered the space agency to reopen the Moon landing competition. SpaceX is now vying with Blue Origin to complete its Moon lander first, with both American spacecraft designers keeping close tabs on China's parallel quest to speed its taikonauts to the silver and black orb before the end of the decade. The clock is ticking on this three-power competition, a curious redux of the first race to the Moon by the rival American and Soviet Russian space superpowers. Since SpaceX founder Elon Musk webcast the sensational 12th flight test of the Starship, aerospace engineers forming Blue Origin's lunar lander division, and their counterparts across China, are undoubtedly replaying the flight, frame by frame, to measure up their competing advances, says Brian Hurley, a world-leading expert who chronicles the rapid-fire expansion of the modern space sector, and its rippling effects across the spheres of national security and international affairs. Blue Origin's lunar teams "would not be watching as spectators," says Hurley, founder of the influential think tank New Space Economy, which also publishes a digital magazine. "They would be watching as competitors, engineers, and strategic planners." "Every Starship test provides public information about SpaceX's progress, weak points, cadence, risk tolerance, and likely schedule pressure," Hurley told me in an interview. "Blue Origin's lander architecture is different, but SpaceX's pace matters to Blue Origin because it shapes NASA expectations, political expectations, and the perceived race between commercial lunar-lander providers." China's spacecraft developers, he adds, are just as likely to parse the Starship flight footage for clues and details on the ship's next-generation design and engineering. "A Starship test is not only a U.S. commercial event; it is also open-source technical intelligence." "Chinese teams working on crewed lunar landing systems, heavy-lift launchers, reusable boosters, and new crew spacecraft would almost certainly study the flight to assess both the promise and the remaining weaknesses of the Starship approach." "That does not mean China would change its architecture based on one flight," Hurley says, "but it would feed into their assessment of U.S. progress toward returning astronauts to the lunar surface." Blue Origin, which like SpaceX has received a NASA commission to develop a Moon lander, and its counterparts across the Chinese government's spacecraft development sector, are also racing to perfect their own lunar modules, patterned after the Apollo program's of a generation ago, and tiny compared to SpaceX's Titan-size Starship. The Starship is not just the most powerful spacecraft ever designed on Planet Earth, configured to hold 100 astronauts on every future flight to Mars, but also features world-leading technologies that place it uniquely in a new class of hyper-ship. With constant, iterative changes in the design of every spacecraft, Elon Musk, a dot-com tycoon before creating SpaceX, and his army of engineers are all driven by the Silicon Valley mantra "Move fast and break things." But even as the starting gun is fired on the new-millennium Moon marathon, SpaceX still has to ace a succession of space-tech breakthroughs that have never before been tested, ranging from refilling the Starship with cryogenic fuel while the ship and tanker are speeding around the planet at 28,000 kilometers per hour, and then again in orbit around the Moon, and touching down amid the meteor strike-created craters near the orb's South Pole. Did the new demo flight of the Starship, with the picture-perfect soft splashdown of its capsule in the Indian Ocean, position SpaceX to take the lead in rocketing NASA spacefarers to the gleaming globe by 2028, ahead of their Chinese rivals? "I think that schedule is optimistic," says Robert Zubrin, the pre-eminent American aerospace engineer who designed an early prototype of NASA's Space Launch System, the cutting-edge rocket that just sent four Allied astronauts on a flight around the Moon. "But I do think Starship will be operational as a fully reusable heavy lift Earth to orbit system by that time [2028], with revolutionary implications for the exploration and development of space," Dr. Zubrin told me in an interview. But the design and tech wizards at SpaceX, he says, "face a number of engineering challenges." "First is development of refueling tankers." "Then is orbital refueling of Starship to leave LEO," or low Earth orbit. "Then is orbital refueling of tankers to refuel Starship in lunar orbit." "Then is doing all this at a fast enough tempo (they will need 10 to 15 Starship launches to do all this) so that the propellant does not boil away before they can get the mission done," Zubrin says. Besides designing vanguard American spacecraft, Dr. Zubrin has created the globe's foremost masterplan to terraform Mars, or generate an Earth-like biosphere around the Red Planet while restoring its original oceans and atmosphere. SpaceX has incorporated vast portions of the designs and strategies sketched out in Zubrin's masterwork book "The Case for Mars," on transforming Mars onto a second foundation for civilization, into its grand schemes for Mars, including tapping Martian resources to produce rocket propellants for its Starship capsule. The perils awaiting SpaceX on the Earth's ancient silver satellite, Zubrin says, include its shifting topography and sparsely explored surface features. "There is the issue of avoiding blowing a crater in the Moon and shooting up tons of high velocity dust as they land," he says. "Then there is the issue of leveling the lander." "Then there is the issue of moving payloads up and down from the tall Starship to the surface." "Then there are issues associated with the takeoff from the Moon." The very first flight test of the Starship, three years ago at the Starbase center, blasted the launch pad, transforming it into a crater, and there are fears that a landing or takeoff on the Moon's variable surface could trigger a similar catastrophe. The Moon's surface conditions, combined with the extraordinary height of the SpaceX capsule, represent "one of the more important technical risks for using Starship as a lunar lander," says space scholar Brian Hurley. "The concern is not only that the lunar surface may be uneven. It is the combination of Starship's size, landing-leg loads, possible surface slope, loose regolith, rocks, and the effect of engine plumes on the surface." "Apollo's Lunar Module was a much smaller vehicle," he says. "Starship HLS [Human Landing System] is a very different class of lander, so the margin for unexpected surface interaction becomes an important issue." "A very large lander can blast dust, sand-sized particles, and rocks away from the landing zone at high speed. That can affect visibility, sensors, nearby hardware, and potentially the surface under the vehicle itself." "If the landing site is soft, rocky, sloped, or uneven," he warns, "there is also the possibility of uneven leg loading or an excessive tilt after touchdown." Yet there's an array of technology approaches to reduce the danger. "The first is conservative landing-site selection: using high-resolution orbital mapping to pick very flat, relatively rock-free areas." "The second is autonomous hazard detection and avoidance, so the vehicle can identify unsafe terrain during descent and adjust its touchdown point." NASA and SpaceX can also mitigate the dangers by minimizing the touchdown velocity. "Starship HLS has been expected to use design features different from the Earth-return Starship," Hurley explains, "because landing on the Moon creates a very different set of problems." "Landing without a prepared pad is not necessarily a show-stopper," Hurley predicts, as a one-time solution. "If Artemis becomes a continuing program rather than a series of isolated sorties, prepared landing zones become much more important." For a sustained lunar base, landing pads will likely shift from being optional to absolutely essential infrastructure. SpaceX could use its first, uncrewed landing demo on the Moon to deploy a team of autonomous robots to build a landing zone or to position a prefabricated landing pad for the next human flight, Hurley says. In a fascinating paper that he co-authored with other spaceflight visionaries across NASA and inside SpaceX, titled "Accelerating Martian and Lunar Science through SpaceX Starship Missions," Professor Kip Hodges says: "SpaceX is developing the Starship vehicle for both human and robotic flights to the surface of the Moon and Mars." Flotillas of massive Starships will enable the delivery of fleets of mobile robots, adds Hodges, one of the top space scholars in the U.S. and founding director of the School of Earth and Space Exploration at Arizona State University. While SpaceX's longstanding focus has been fixed on Mars, he says, "flights to the Moon provide the opportunity to test and demonstrate Starship systems closer to Earth prior to the longer journey to Mars." "More frequent flights to the Moon than to Mars are feasible due to orbital dynamics, and thus significant capabilities can be developed and tested at the Moon prior to Mars missions." Besides speeding brigades of robots to off-world destinations, Hodges says, Starships "will also carry hardware needed to support the human base including equipment for increased power production, water extraction, LOX/methane [rocket fuel] production [and] pre-prepared landing pads." Upon landing, Professor Hodges and the SpaceX engineers say, spacefarers could live on the Starship, the first of identical spacecraft-turned-skyscrapers that ultimately spread out across the solar system. Brian Hurley says that means the first experimental touchdown of the robotically piloted Starship on the Moon could carry a prefabricated landing platform, to be positioned by a squad of robots, while the ship provides living spaces for scores of future astronauts. Professor Hodges tells me in an interview that, in light of the rush to triumph in Moon Race II, NASA might even delay the assembly of lunar landing platforms until after the first American astronauts reach the crater-surrounded finishing line. "I don't think they absolutely need a landing pad for Starship or Blue's lander," says Hodges, who has teamed up with NASA to help train Allied astronauts on surface operations. "I think there is enough urgency to not be beaten to the Moon by the Chinese that they want to get Americans there as quickly as they can." Spacecraft designer Zubrin says that SpaceX could completely avoid the looming dangers and complexity of landing a Starship on the alien terrain of the Moon by rapidly prototyping and launching a miniature version of the Starship. This mini-Starship, which he calls a Starboat, would feature just one-fifth the mass of the mothership, and act as a shuttle to transport astronauts from an orbiting Starship down to the surreal polar region of the Moon. Many of the Herculean tech challenges now facing a Starship descent onto the Moon "would be much, much, easier to solve if the Starship were coupled with a mini-Starship, or Starboat, that could serve the function of lunar orbit to surface ferry." "The big Starship would never have to land." "Instead it could be used to refuel the Starboat from orbit." In the future, Dr. Zubrin says, "A similar Starboat could also serve as a ferry from Mars orbit to the surface." This article was originally published on Forbes.com
SpaceX wins $2.29 billion Space Force contract for military data network
WASHINGTON -- The U.S. Space Force awarded SpaceX a $2.29 billion contract to build a network of low Earth orbit satellites intended to function as a military internet in space. According to a news release, the contract is for the development of a network known as the Space Data Network Backbone. Previously known as MILNET, these will be optically interconnected satellites that would transport military data through space rather than relying primarily on terrestrial relay networks or ground stations. The award was issued by the Space Force's Portfolio Acquisition Executive for Space-Based Sensing and Targeting, a newly established organization overseeing the broader Space Data Network, or SDN, effort. The SDN backbone will serve as the "backhaul" layer of the architecture. In telecommunications terms, backhaul refers to the high-capacity movement of data between distributed networks. The satellites would relay large volumes of military data among spacecraft, sensors, command systems and weapons platforms. The system is intended to form the core transport layer for future military operations in space, enabling near-real-time transmission of targeting and sensor data across global networks. SpaceX will build the system using its Starshield satellites, a government-focused variant of the company's commercial Starlink broadband constellation. According to the company, Starshield leverages Starlink technology to provide secure satellite networks designed for national security missions. The Space Force said the SDN backbone will be integrated with the Space Development Agency's Transport Layer constellation, a separate low Earth orbit mesh network intended to provide military communications and data relay services. SDA has procured more than 300 Transport Layer satellites through its Tranche 1 and Tranche 2 contracts with multiple vendors. But the Pentagon restructured the effort before initiating Tranche 3 procurements, shifting emphasis toward the Space Data Network. The move generated concerns because it concentrates a major portion of future satellite procurement under SpaceX, whereas SDA's earlier Transport Layer acquisitions were distributed across several companies. The Space Force said additional vendors are expected to participate in the broader SDN architecture over time. "Current acquisition efforts between SDN Backbone and SDA's Transport layer come together to evolve capabilities and build out the LEO portions of the SDN hybrid mesh data network," the Space Systems Command said in a statement. "Together, these systems will form a unified and open architecture to provide critical data transport." The contract was awarded through an Other Transaction Authority agreement, or OTA, a contracting mechanism often used for prototype and rapid-development programs. The Space Force said the agreement requires delivery of a fully operational prototype capability by the end of 2027. Col. Ryan Frazier, acting portfolio acquisition executive for Space-Based Sensing and Targeting, said the SDN backbone is intended to support continuous global military connectivity. The broader SDN architecture "acts as a core communications layer for the U.S. Space Force, ensuring our sensors and shooters are connected continuously, globally and securely," Frazier said. The Space Force also has established an "SDN consortium" intended to coordinate interoperability and standards among participating vendors. The architecture has become increasingly linked to the Pentagon's Golden Dome missile defense initiative, a proposed layered defense system intended to track and shoot down advanced missile threats using a combination of space-based sensors, communications networks and interceptor systems. Military officials view the SDN as a foundational component because it would allow missile-tracking satellites to rapidly transmit targeting data through orbital relay networks to command systems or interceptors with minimal delay. For example, a satellite detecting a missile launch could pass tracking information through the SDN mesh network directly to missile defense systems or combat units, creating what military planners describe as "sensor-to-shooter" connectivity. Gen. Michael Guetlein, who leads the Golden Dome program, said the budget was increased by $10 billion in part to fund development of a space-based data network. The Trump administration's fiscal year 2027 budget request includes nearly $1.5 billion in research and development funding for the SDN backbone, along with another $2.38 billion in procurement funding to accelerate expansion of what budget documents describe as a proliferated low Earth orbit, or pLEO, mesh constellation and related ground infrastructure.
Elon Musk's Tesla-SpaceX Merger Chatter Gets Louder - Tesla (NASDAQ:TSLA)
Talk of a possible Tesla-SpaceX combination is picking up as Elon Musk moves closer to bringing SpaceX to Wall Street. TSLA stock is moving. See the price action here. Tesla and SpaceX reportedly already lean on shared engineering talent and have worked together on challenges involving energy, computing capacity and infrastructure. AI Connection The logic behind a potential deal is increasingly centered on artificial intelligence. Tesla needs advanced AI systems that can operate inside vehicles under strict limits on power use, cooling, latency and cost. SpaceX faces a different version of the same problem in orbit, where compute systems must withstand radiation, thermal swings, mass limits, power demands and heat-management constraints. SpaceX's business now stretches well beyond rockets. Its portfolio includes reusable launch systems, Starlink satellite internet and xAI, while the company has also been tied to major AI infrastructure ambitions. Tesla, meanwhile, is investing heavily in AI, robotics, energy storage and autonomous-driving technology. The companies already have meaningful operational and financial links. Musk holds leadership roles across both businesses, and several executives, board members and technical leaders have moved through or served both companies over the years. SpaceX has purchased Tesla Megapack battery systems and Cybertrucks, while prior dealings have included Tesla equipment sales to SpaceX, private-jet usage and materials work connected to Cybertruck development. More Wall Street Chatter Wedbush analyst Dan Ives put the odds of a Tesla-SpaceX tie-up at about 80%, arguing that the connective tissue between the companies is already forming. Photo: Shutterstock This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.
Spain Moves to Ban Prediction Market Platforms Polymarket, Kalshi | Sada Elbalad
Spain imposed a temporary ban on prediction market platforms Polymarket and Kalshi, escalating regulatory scrutiny of the rapidly expanding sector over allegations that the companies operated without the required gambling licenses. According to Spain's official state gazette published Tuesday, the Ministry of Consumer Rights ordered the suspension after determining that the US-based platforms had allegedly offered services inside the country without obtaining mandatory authorization for gambling and betting activities. In a statement, the ministry said Spain's gambling regulator had launched a broad investigation into both companies over suspected violations of local gaming laws and the operation of unauthorized betting services. The temporary suspension is expected to remain in place for between three and four months while authorities complete their inquiry. Prediction markets allow users to buy and sell contracts tied to the outcome of future events, with prices fluctuating based on the perceived probability of a given result. The platforms have gained global popularity by enabling speculation on political elections, economic indicators, sports events, and other real-world developments. Spanish authorities, in line with several European regulators and courts, classify such activities as a form of gambling because users are effectively wagering on uncertain future outcomes. The ministry also raised concerns about consumer protection and safeguards for vulnerable users, arguing that unauthorized operators lack essential compliance mechanisms such as identity verification systems, restrictions preventing minors from accessing gambling services, and protections for self-excluded individuals. Officials further warned that unlicensed platforms may not meet regulatory standards for securing user funds and protecting personal data. The move reflects mounting pressure on prediction market operators as governments worldwide struggle to define the legal boundaries between financial forecasting tools and online gambling businesses. Once considered a niche corner of the internet, prediction markets have evolved into a multibillion-dollar industry after attracting millions of users during the 2024 US election cycle, where betting activity on political outcomes surged dramatically. The sector's explosive growth has increasingly drawn the attention of regulators concerned about financial oversight, consumer risk, and the potential social impact of unregulated online wagering platforms.
US Space Force awards SpaceX $2.29 billion contract for military space data network
WASHINGTON, May 26 (Reuters) - The U.S. Space Force has awarded SpaceX a $2.29 billion contract to build a secure, high-speed satellite communications network to connect military sensors and weapons platforms across the globe, the service announced on Tuesday. The fixed-price nontraditional contracting agreement covers the Space Data Network (SDN) Backbone, a resilient network architecture providing high-capacity and low-latency data transport for the military. Space Force said the vendor must deliver a fully operational prototype capability by the end of 2027. Among other roles, the SDN will provide the communications pathways for integrating and moving data from missile warning and tracking sensors to interceptors in near real time -- a capability seen as foundational to the Trump administration's Golden Dome missile defense initiative. "The SDN Backbone leverages the best of commercial innovation and delivers a strong foundation for the SDN mission set -- a huge benefit and enabler for our warfighters," said Space Force Colonel Ryan Frazier, the acting portfolio acquisition executive overseeing the program. The SDN Backbone is a proliferated low Earth orbit (pLEO) satellite constellation that will expand a mesh of satellites delivering worldwide communication services, the Pentagon said. It will work alongside the Space Development Agency's Transport Layer to form a unified architecture providing critical data transport for current and future Department of Defense missions. The Space Force said it plans to identify additional contractors for satellite construction and other network elements over the summer. (Reporting by Mike Stone in Washington; Editing by Mark Porter, Rod Nickel)
SpaceX set for fast entry into US, global indexes under new FTSE rules
May 26 (Reuters) - Elon Musk's SpaceX is eligible for inclusion in both the Russell U.S. Equity Indexes and FTSE Global Equity Index Series under newly announced fast-entry rules, according to index provider FTSE Russell. FTSE Russell, a London Stock Exchange Group business, proposed introducing a fast-entry mechanism for initial public offerings and revising eligibility requirements for its Russell U.S. Equity Indexes in February. SpaceX is estimated to carry an investable market capitalization of about $70 billion, a figure that clears two major index eligibility thresholds -- the $17.5 billion market-adjusted breakpoint for Russell Top 500 inclusion and the $13.5 billion fast-entry threshold set by the FTSE GEIS, the index provider said. SpaceX's listing is expected to be the highlight of what is shaping up to be one of the busiest years for IPOs in recent memory, with several high-profile venture-backed companies and startups, including OpenAI and Anthropic, laying the groundwork for their respective debuts. Musk's space venture, which is eyeing a public listing that could value it at $1.75 trillion, is expected to be added to Russell Top 50, Russell Top 200, Russell 1000 indexes. It could be included in FTSE GEIS' Global All Series, FTSE All-World, FTSE World Index, FTSE Global Total Cap. The index provider, however, cautioned that the assessment is based on SpaceX's current S-1 filing and limited publicly available information, which could be reassessed based on subsequent filings. SpaceX is aiming to list its shares as early as June 12, with a roadshow launch targeted for June 4 and the share sale expected as early as June 11, Reuters has reported. (Reporting by Juby Babu in Mexico City; Editing by Shilpi Majumdar)
