Rebirth: Starting from Lighting Up the Tech Tree

Chapter 174 Competitors

When Han Lu placed the three reports on Zuo Cheng's desk, he was looking at the printout of the simulation curves.

"International market dynamics," Han Lu said, "including SpaceX, Blue Origin, and domestically."

Zuo Cheng put the simulation curves aside and picked up the report on top.

"SpaceX successfully completed a launch last week, with the first stage rocket successfully recovered. This marks their seventeenth successful recovery this year," said Han Lu. "The recovery success rate has remained consistently above 92%, and a single first stage rocket has been reused up to 12 times. The Falcon 9 rocket is priced at $62 million per launch, but internal cost estimates have already dropped below $30 million."

Zuo Cheng wrote down the numbers.

With a cost of $30 million and a asking price of $62 million, SpaceX has a gross profit margin exceeding 50%. This gives them sufficient funds to continue investing in research and development, widening the gap with their competitors.

What about Blue Origin?

"The New Shepard rocket has completed its fifteenth suborbital flight test, but the New Glenn, a large orbital rocket, is still delayed, with its maiden flight postponed to the first half of next year," said Han Lu. "Their technological approach differs from SpaceX's, focusing more on large, reusable rockets, but their development is progressing slower than expected."

What about domestically?

"The China Aerospace Science and Technology Corporation is working on the recovery and modification of the Long March 8 rocket, following a vertical recovery route, similar to SpaceX. However, the progress is confidential, and there is no specific data available to the outside world." Han Lu paused. "The Institute of Mechanics of the Chinese Academy of Sciences is developing a scheme based on aerodynamic deceleration and parachute assistance, which is not entirely the same as our approach."

"Nine Heavens Technology?"

"The company Zhao Tianxing invested in makes satellite platforms, not rockets. Its founder is the former director of the overall design department of a certain aerospace research institute," Han Lu said. "If they establish a partnership with the China Aerospace Science and Technology Corporation (CASC), they could become its satellite supplier. And if CASC's Long March 8 rocket is successfully recovered, it will be our most direct domestic competitor."

Zuo Cheng stood up and walked to the window. The sky over Hangzhou was overcast, with thick clouds.

The competitive landscape is more crowded than he imagined. Internationally, SpaceX has established an unshakeable first-mover advantage, while Blue Origin, though lagging behind, has Bezos's funding. Domestically, the China Aerospace Science and Technology Corporation has a national team background and deep technological accumulation.

The advantages of 402 are its AI-powered control algorithms and the stable launch requirements brought by space photovoltaics. Its disadvantage is that it started at least five years later and lacks practical launch experience.

"What is our differentiation strategy?" Zuo Cheng turned around.

"Three directions," Han Lu said. "First, AI-driven precision recovery; simulation data shows that landing accuracy can be within two meters. Second, the demand for bundled launches of space photovoltaics, providing stable orders. Third, the flexible mechanisms and short decision-making chains of private enterprises."

What about the risks?

"The biggest risk is a failed first launch," Han Lu stated bluntly. "If the maiden flight explodes, it will be a triple blow to public opinion, funding, and team morale. SpaceX also experienced several failed recoveries, but they already had a mature Falcon 9 rocket in operation at the time. If we fail on our first launch, we may not have a second chance."

Zuo Cheng remained silent.

"There's one more thing," Han Lu said. "People from the European Space Agency arrived in Hangzhou yesterday afternoon. Two people, a technical officer and a business liaison, said they're here to discuss cooperation."

Why are you looking for us?

"The European Space Agency is currently promoting a reusable rocket program called Project Themis. Technically, it's similar to our approach, both involving vertical recovery," Han Lu said. "A month ago, Li Guodong had someone submit an abstract at the Asian Space Technology Symposium, detailing an AI-enhanced rocket attitude control algorithm. They noticed it."

Zuo Cheng thought for a moment: "Arrange a meeting."

The meeting was scheduled for the next morning.

The representative from the European Space Agency was a Chinese engineer in his forties named Feng Rui, whose technical background was in control theory and guidance and navigation.

"We saw the abstract of the rocket recovery simulation data from rocket 402 at an academic conference," Feng Rui said bluntly. "The landing accuracy was 2.7 meters, and even with strong disturbances, it maintained sub-meter attitude control accuracy. This data is excellent."

What do you want?

"Technological cooperation," Feng Rui said. "The Themis project is currently conducting technical verification for vertically recoverable rockets. We have accumulated experience in attitude control algorithms, but compared to your AI-driven solution, there is still a gap in response speed and disturbance resistance. We would like to know if 402 is interested in becoming a technical partner."

"What are the specific forms of cooperation?"

"Two possibilities. First, technology licensing, involving payment of licensing fees. Second, joint research and development, with both parties jointly investing and sharing intellectual property rights."

Zuo Cheng thought for a moment. The first option, exchanging money for technology, would generate short-term revenue but ultimately result in handing over core technology. The second option was more in line with 402's long-term interests.

"The second option is joint research and development. But we have one condition," Zuo Cheng said. "All ground tests for the Themis project must be conducted within China. The European Space Agency will be responsible for providing the testing equipment and funding, while 402 will be responsible for providing the core algorithms and technical team. Test data will be shared by both parties, but we will have priority access to the testing facilities within China."

Feng Rui paused for a moment: "This means you not only want technical cooperation, but also want to leverage our resources to establish a ground-based testing system for rocket recovery in China."

"Yes," Zuo Cheng said. "Before the first launch, we need as much ground test data as possible. Wind tunnel tests, engine tests, and hardware-in-the-loop simulation of the control system all require facilities and equipment. Your resources can help us accelerate this process."

Feng Rui remained silent for a while.

"I need to take your terms back for discussion," he said, "but I personally believe that this solution is valuable to both sides."

"Looking forward to your reply."

After Feng Rui left, Han Lu entered the conference room.

"How did the talks go?"

"They wanted attitude control algorithms, so I offered a joint development plan on the condition that we use their resources to establish a ground testing system in China."

Han Lu thought for a moment: "Isn't this condition too harsh?"

"No," Zuo Cheng said. "The European Space Agency is at least five years behind SpaceX in reusable rockets, and they need shortcuts. Our algorithm is that shortcut. It's a win-win situation."

Zuo Cheng walked to the window and looked out at Hangzhou. The clouds had parted a bit, and sunlight shone through the gaps, illuminating a tall building in the distance, its glass facade reflecting a blinding light.

There are many competitors. SpaceX, Blue Origin, China Aerospace Science and Technology Corporation, Jiutian Technology, and other players lurking in the shadows.

Competition itself isn't the problem. The problem is whether you can position yourself well before the competition even begins.

He returned to his seat and wrote a line in his notebook.

Sky One.