This article first appeared on GuruFocus.
SpaceX (NASDAQ:SPCX) pushed deeper into the next frontier of space commercialization on Tuesday, launching a demonstration mission for its Starfall program from Cape Canaveral Space Force Station in Florida. The mission sent a reusable, uncrewed capsule into space aboard the company’s Falcon 9 rocket shortly before 6:55 a.m. local time, with the goal of recovering it back on Earth after orbit.
The investment angle is bigger than one capsule. Under Starfall, SpaceX could eventually carry products such as pharmaceutical components, semiconductors, food and beauty items into orbit, where microgravity and higher radiation levels may create manufacturing conditions that companies cannot easily replicate on Earth. The cylinder-shaped capsule is designed to carry as much as 2,200 pounds, or 1,000 kilograms, and is expected to return off the US West Coast with parachute assistance.
The launch also shows how SpaceX is trying to build new businesses around the space environment as it enters a new era as a publicly traded company. The company’s record-breaking initial public offering was mainly powered by its plan to build orbital data center satellites around Earth, while Elon Musk has also discussed lunar data centers and a moon base. But SoftBank Group (SOBKY) founder Masayoshi Son pushed back Tuesday, saying most computing infrastructure will likely stay on Earth and that the next few years in AI may matter more than what could happen a decade from now.