The latest test of Space X's giant Starship rocket failed just minutes after launch.
Officials with Elon Musk's company said a problem occurred after liftoff from Texas on Thursday, resulting in the loss of contact with the upper level.
The mission comes hours after the first flight of Blue Origin's New Glenn rocket system, which is backed by Amazon boss Jeff Bezos.
Both tech billionaires hope to dominate the spacecraft market.
SpaceX posted on
"Success comes from what we learn through testing like this, and today's flight will help us improve the reliability of our Starship."
Unconfirmed videos on social media showed the rocket appearing to disintegrate in flames.
"Success is uncertain, but entertainment is guaranteed!" Mr. Musk posted on X, sharing footage of the aftermath of the launch.
He also said that "improved versions" of the ship and booster were "already awaiting launch."
"Initial indications are that we have an oxygen/fuel leak in the cavity above the ship's engine firewall that is large enough to create pressure that exceeds the exhaust's capabilities," Musk said shortly after, adding, "So far "There is nothing to indicate the need to push for the next launch beyond next month."
According to SpaceX's live broadcast, the launch video has been viewed 7.2 million times.
The Starship system lifted off from Boca Chica, Texas, at 17:38 ET (22:38 GMT), marking the company's seventh test mission.
The starship's upper stage separated from its Super Heavy booster as planned nearly four minutes into the flight.
But then SpaceX communications manager Dan Huot reported on a live broadcast that the mission team lost contact with the spacecraft.
The Super Heavy booster successfully returned to the launch pad about seven minutes after liftoff as planned, eliciting bursts of applause from the ground control team.
The U.S. Federal Aviation Administration (FAA) said it was aware of "an unusual situation that occurred" during the SpaceX mission.
"The FAA briefly slowed the aircraft and changed course near the area where debris fell from the spacecraft. Normal operations have resumed," the FAA said in a statement.
A day earlier, a SpaceX rocket blasted off from Florida carrying two privately built lunar landers and a miniature rover to the moon.
The unmanned Falcon 9 launched from Kennedy Space Center on Wednesday.
And Bezos’ Blue Origin Successfully launched rocket into orbit first.
It's a big step forward for Bezos and company, which have spent years getting the rocket into orbit.