The latest test of Space X's giant Starship rocket has failed, minutes after launch. Officials at Elon Musk's company said the upper stage was lost after problems developed after lift-off from Texas on Thursday. But the Super Heavy booster managed to return to its launchpad as planned, prompting an eruption of applause from ground control teams.

Despite the failure, Elon Musk appeared to see the bright side, posting: "Success is uncertain, but entertainment is guaranteed!"

The US has grounded SpaceX's giant Starship rocket while an investigation is carried out into why it exploded during its latest test flight. The rocket's upper stage dramatically broke up and disintegrated over the Caribbean after launching from Texas on Thursday, forcing airline flights to alter course to avoid falling debris.

After Jeff Bezos's Blue Origin nailed its first-ever orbital flight, Elon Musk's SpaceX is seizing back the spotlight on Thursday with the latest launch of Starship, the gargantuan next-generation rocket that could one day ferry humans to Mars.

The agency launched an investigation into the “space vehicle mishap” on Thursday night that forced commercial flights to divert and caused debris to rain toward Caribbean islands.

Just minutes after the rocket launched, its booster made its planned return to the ground and was caught between two giant mechanical arms. However, as crowds cheered the booster's return, SpaceX confirmed it had lost contact with Starship after a possible in-space failure.

SpaceX mission control lost contact with the newly upgraded Starship, carrying its first test payload of mock satellites but no crew, eight minutes after liftoff.

While Jeff Bezos has spent $14 billion to achieve his first space launch, his billionaire rival has built a thriving business, mostly with other people’s money.

The world’s biggest rocket just got a bit bigger, and its upcoming launch is meant to support its next-generation Starlink satellites.

Blue Origin scored a major win with its New Glenn rocket launch, but SpaceX still leads the space industry with a Falcon fleet and upcoming Starship.

The Starship system is designed to be fully reusable and aims to become a new method of flying cargo and people beyond Earth. The rocket is also critical to NASA's plan to return astronauts to the moon. SpaceX won a multibillion-dollar contract from the agency to use Starship as a crewed lunar lander as part of NASA's Artemis moon program..