Before going public at a record $1.77 trillion, SpaceX detailed plans in its S-1 of building a lunar economy by setting up factories on the moon to make AI satellites. For Musk’s vision to turn into reality, someone needs to figure out how to transport equipment to the moon, generate electricity there, and keep communication lines connected to Earth.
NASA is putting money on the table to do it at scale. The federal space agency announced on Nov. 7 it selected eight companies including SpaceX, Blue Origin, and Lockheed Martin Space to compete for contracts worth up to $10 billion to transport equipment and infrastructure to the moon. It’s part of NASA’s goal of building a permanent lunar outpost for astronauts to inhabit.
“We are building the Moon Base mission by mission,” NASA administrator Jared Isaacman said in the announcement. “When our astronauts return to the Moon, they will arrive with the first elements of the Moon Base already waiting for them on the surface.”
The billions in potential contracts show how intertwined the ambitions of federal space programs and the private space sector have become even as they embrace distinct goals, with NASA focused on establishing a place where astronauts can live and work, and SpaceX eyeing lunar space for manufacturing.
NASA declined to comment, and SpaceX did not respond to Fortune’s request for comment.
Building a moon base
NASA wants to carve out its first permanent outpost on the moon, starting with its first phase of robotic explorations of its south pole to identify promising locations for future infrastructure in 2029, according to its Moon Base website.
Then, between 2029 and 2032, NASA plans to build up power systems, cargo transportation, and communications networks to “support long-term operations” on the moon. After 2032, the agency will focus on making the outpost livable for astronauts so they can do more ambitious research and do “future journeys deeper into the solar system.”
The challenge of getting equipment and supplies up there is why NASA is enlisting outside help. It said the eight companies selected under the Commercial Lunar Payload Services program will be eligible to compete for lunar delivery missions over the next decade, building and operating landers to carry scientific instruments, technology, and other infrastructure.
This is on top of NASA’s existing lunar-related contracting program. NASA said it awarded Blue Origin, Impulse Space, and Arrow Science and Technology a combined $1.3 billion for separate mission tasks. Those tasks include verifying communications systems between the moon and Earth, finding ways to move cargo between the two, and sending drones to survey the lunar surface before astronauts get there.
NASA is also trying to solve the problems of generating electricity and maintaining communication lines. It picked SpaceX to launch satellites aboard a Starship to space in 2028 to test the technology that’ll help astronauts and mission controllers stay connected. The agency also awarded several companies (including the Blue Origin owned Honeybee Robotics) to work on power generation and wireless power transfer for a planned Mini-Communications and Solar Tower (miniCAST).
Musk’s space ambitions
But for SpaceX, these contracts could eventually pave the way for space operations that go beyond shipping astronauts and cargo onto the moon. In its S-1, the company said it intends to build factories on the moon that would use moon-extracted raw materials to manufacture AI satellites, while shipping chips from Earth.
SpaceX said using those lunar materials and taking advantage of the moon’s weaker gravity could “significantly reduce costs and terrestrial resource constraints.” SpaceX also envisions a “lunar mass driver,” which would use “electromagnetic acceleration” to propel satellites without rockets. SpaceX also sees a business opportunity in mining and exporting lunar minerals, estimating the moon has more than 1 million tons of “rare materials” that could go into quantum computing systems and nuclear energy.
But the company’s main goal appears to be setting up a constellation of satellites capable of performing AI computing in space, potentially allowing the company to expand its computing capacity without relying on power-intensive and controversial data centers on Earth.
“This roadmap positions the Moon not only as a potential gateway to Mars and space exploration, but as the first space-based industrial economy at scale,” the S-1 said. “Over time, this infrastructure has the potential to position the Moon as a strategic industrial and transportation node.”
