The first annual X Prize cup begins in Las Cruces, New Mexico. Thousands gathered for the one day space exposition centered around civilian space travel.

The X Prize has spurred such innovation that NASA is now looking towards these entrepreneurs for the future of space travel. Just as DARPA has offered up prizes for robotic car races, NASA plans partner with X Prize founders and to award $$$$ for future achievements. NASA has announced two challenges to spur suborbital rocketry.

Even as the gates were opened for Sunday’s festival, NASA announced it was partnering with the X Prize Foundation on contests that could result in multimillion-dollar payoffs. “We’re ready to undertake two new prize competitions in the arena of suborbital rocket flights,” said Brant Sponberg, program manager for NASA’s Centennial Challenges effort.

Carmack’s Armadillo conducted a vertical test launch, but landing proved to be difficult in the New Mexico sand. The craft tumbled over during landing due to the fact that three of the four legs sunk into the mud. Due to damage to the craft, there will not be a second and third test flight, as was planned.

“I’m disappointed that we didn’t get to do the other two flights on that, but at least we got to put something up in the air,” Carmack said.

California-based XCOR Aerospace was there, showing off prototypes of what will be the first generation of rocket racing. Future visitors to the show maybe entertained by rocket races, in and out of the atmosphere.