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Hi everybody and welcome back to
the Elon Musk podcast. 

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Today we'll be discussing an 
essential milestone that SpaceX 

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recently achieved, securing its 
first ever contract with the US 

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Space Force for satellite 
communications via Star Shield. 

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Now, the contract was officially
confirmed on September 1st, 

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according to Air Force 
spokesperson and Stefanik, and 

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we'll discuss how Star Shield 
operates over the existing 

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Starlink satellites and serves 
as a secured network exclusively

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for governmental agencies. 
The deal has a budget ceiling of

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$70 million and will support 
various arms of the US military 

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like the Army, Navy, Air Force, 
and Coast Guard. 

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And what makes this even more 
interesting is that the contract

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comes on the heels of Spacex's 
role in the Ukaryan conflict, 

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where it provided Internet 
connectivity to the Ukrainian 

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military. 
The STAR Shield contract marks a

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significant moment for SpaceX as
it diversifies its service 

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offerings and the STAR Shield 
network designed for 

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governmental entities, will 
operate over the existing 

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infrastructure of the current 
Starling satellites. 

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Now to put it into perspective, 
SpaceX will provide what's 

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called end to end service 
through this contract, and this 

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comprehensive package includes 
everything from user terminals 

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and ancillary equipment to 
network management and various 

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other services. 
And the US Air Force 

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representative confirmed that 
the contract lasts for one whole

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year with the possibility of 
extensions in the future. 

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With his contract financial 
framework, $15 million has 

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already been earmarked for 
SpaceX to be obligated by the 

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end of September. 
We have to consider that this is

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not an isolated instance of 
Spacex's involvement with the 

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fence, and previously SpaceX had
one other contracts. 

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And the Pentagon has already 
been categorized as a high value

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buyer for SpaceX, and SpaceX has
crafted 2 separate but 

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interlinked satellite 
communication systems, Starlink 

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for civilians and Star Shield 
for government. 

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And while both operate over the 
same Starlink satellite network,

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they serve completely different 
purposes in completely different

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clientele. 
Elon Musk clarified on the 

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platform formerly known as 
Twitter that Star Shield will be

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under the US government's 
ownership and controlled by the 

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Department of Defense Space 
Force. 

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The civilian Starling network 
will remain independent and 

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won't participate in combat 
operations. 

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Now what this bifurcation allows
is a dual use system where they 

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can serve different sectors 
without compromising on the 

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quality or security of services 
provided. 

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Now, this new US contract for 
the US Space Force certainly 

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isn't Spacex's first dance with 
the defense sector. 

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The Pentagon has relied on 
SpaceX for a number of rocket 

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launches, indicating a level of 
trust and satisfaction with the 

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services that they provide. 
And the work with the Department

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of Defense and other military 
branches by SpaceX showcases the

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versatility and adaptability of 
these technologies. 

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And the very nature of these 
contracts often necessitate 

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strict requirements for 
reliability, security, and 

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efficiency. 
Aspects. 

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Where SpaceX has repeatedly 
proven its mettle would be an 

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oversight to discuss the 
contract without acknowledging 

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Spacex's role in the ongoing 
Ukraine conflict. 

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And SpaceX has been providing 
Internet connectivity to 

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Ukraine's military, aiding their
fight against invading Russian 

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forces from the beginning. 
The decision was not without its

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complications, though. 
Last year, SpaceX made the 

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choice not to extend starlet 
coverage to Russian occupied 

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Crimea, a move that some say had
a significant impact on 

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Ukraine's military operations. 
And these actions have garnered 

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attention even from policy 
officials, highlighting the 

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geopolitical influences SpaceX 
and its technologies, Wheel Now,

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Spacex's involvement in global 
conflicts, and now its contract 

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with the US Space Force have led
to a more nuanced role for the 

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company and in world affairs. 
And while Elon Musk doesn't hold

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any official diplomatic titles, 
the influence of Spacex's 

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technologies, particularly in 
communications, is something 

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that can't be easily dismissed. 
Should be mentioned that earlier

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in June that the Pentagon had 
already signed another contract 

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with SpaceX to provide satellite
connectivity for Ukraine's 

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military. 
And as we move forward, they'll 

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be crucial to manage this new 
found influence responsibility 

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and ensure that the technologies
are used for the betterment of 

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society and global stability. 
Now let's move on to Jeff 

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Bezos's rocket company. 
Completely separate topic, but 

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still in the realm of space. 
The recent FAA closure of the 

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investigation into Blue Origin, 
the New Shepherd rocket mishap 

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that took place on September 
12th of 2022 of the unmanned 

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rocket faced A catastrophic 
engine failure, resulting in the

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booster being destroyed in the 
capsule deploying its emergency 

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escape system. 
And according to the FAA, the 

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issue stemmed from a structural 
failure of an engine nozzle 

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brought about by higher than 
expected engine operating 

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temperatures, and this problem 
led to an unintended alteration 

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in the Rockets trajectory about 
a minute after its liftoff from 

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Blue Origins West, TX launch 
site. 

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However, the capsule which was 
carrying scientific payloads, 

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executed its emergency escape 
system and landed safely. 

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The FAA investigation concluded 
with 21 corrective measures the 

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Blue Origin is mandated to 
implement, including an engine 

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and nozzle component redesign. 
Blue Origin, though currently 

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grounded, indicated in the 
social media statement that 

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flights would resume shortly. 
Blue Origin, which was founded 

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by Jeff Bezos, had been 
successfully operating 

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suborbital flights since the 
summer of 2021, and in that 

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period New Shepherd launched 6 
crude flights transporting a 

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total of 31 people with some 
notable passengers including 

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William Shatner and Michael 
Strahan. 

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So it's safe to see that the New
Shepherd program was an integral

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part of Blue Origins overall 
enterprise, constituting A 

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considerable chunk of the 
revenue and public reputation. 

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Now the FA A's decision to 
ground the New Shepherd program 

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temporarily has had a palpable 
effect on Blue Origins business 

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plans. 
For company that had ambitions 

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to send customers on 10 to 12 
minutes suborbital flights, the 

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hiatus comes as a significant 
setback, especially with the 

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booming interest in space 
tourism. 

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And on the other front, Blue 
Origin recently announced a 

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change in leadership, CEO Bob 
Smith stepping down to be 

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succeeded by former Amazon 
executive Dave Limp. 

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Now this transition is likely to
be pivotal as the company looks 

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to steer through the challenges 
brought on by the recent mishap.

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Blue Origin is not alone in the 
commercial Space Flight area 

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though. 
The principal competitor, Virgin

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Galactic, also had to go through
a FAA investigation post Richard

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Branson space trip leading to a 
two year pause in their 

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operations and Virgin Galactic 
resume flights with their first 

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paying customers in May of 2023 
and it's currently preparing for

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their Galactic 04 mission. 
Virgin Galactic and Blue Origin 

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are looking to capture a 
significant share of the space 

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tourism market, with ticket 
prices ranging from $250,000 

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initially around 450,000 
currently for Virgin Galactic. 

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With a waiting list of more than
800 people, the demand for such 

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experiences is definitely 
apparent. 

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Interestingly, both companies 
have customers who have also 

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shown interest in their 
competitors. 

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For example, Sharon and Mark 
Hagel from Winter Park, FL had 

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flown with Blue Origin in March 
2022 and are on the waiting list

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for Virgin Galactic. 
The second trip with Blue Origin

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is on hold, pending FA A's final
nod for New Shepherd's return to

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Flight. 
And while space tourism is a 

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noteworthy segment of Blue 
Origins plans, it is far from 

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being their only focus. 
The company has ambitious 

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projects that include the launch
of its new Glen heavy lift 

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rocket from Cape Canaveral, FL, 
a lunar Lander for NASA's 

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Artemis missions, and a 
commercial space station named 

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Orbital Reef, And for Blue 
Origin, the Fe A's decision to 

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close the investigation may mark
a turning point. 

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The company is required to 
adhere strictly to 21 corrective

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measures outlined by the FAA, 
some of which may necessitate 

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significant engineering efforts.
The timely implementation of 

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these measures is critical, 
especially with these ambitious 

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projects waiting in the wings, 
and the FA A's final report, 

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though not publicly available 
due to proprietary and US export

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control reasons, states that 
public safety was not 

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compromised during the mishap. 
The FAA also clarified that the 

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investigations closer does not 
indicate an immediate 

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presumption of the New Shepherd 
launches. 

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Blue Origin needs to implement 
all corrective actions that 

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impact public safety and receive
a license modification from the 

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FAA prior to their next launch. 
Regulations are an essential 

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aspect of any burgeoning 
industry and the commercial 

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space sector is no exception. 
What transpired with Blue Origin

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can serve as an instructive 
episode for other companies in 

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the industry, underscoring the 
significance of safety measures 

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and regulatory compliance. 
Now, thank you so much for 

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listening to the show today. 
We hope you found this 

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discussion pertinent and 
beneficial, and if you enjoyed 

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So thanks for doing that. 
And until next time, please take

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care of yourselves and each 
other and I'll see you in the 

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next one.