Musk and Altman Clash Over Orbital Data Centers

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As SpaceX founder Elon Musk moves forward with plans to launch an orbital data center constellation powered by Starlink, his AI rival Sam Altman of OpenAI has publicly dismissed the idea as "ridiculous" and not viable in the next decade, citing challenges like the high cost of launching data centers to space and the difficulty of repairing computer chips in orbit.

Why it matters

The disagreement between the two tech billionaires highlights the ongoing competition and diverging visions within the AI and space industries. Musk sees orbital data centers as a way to support the growing demand for AI computing power, while Altman remains skeptical about the feasibility and necessity of the concept in the near future.

The details

Musk has filed an FCC application to launch up to one million Starlink satellites to support an orbital data center constellation, likely as part of efforts to raise capital for SpaceX ahead of a planned IPO. Altman, on the other hand, had previously toyed with the idea of launching data centers to space but now dismisses it as "ridiculous" with the current technology, citing the high costs and challenges of repairing computer chips in orbit.

• In late January, SpaceX filed an FCC application to launch an orbital data center constellation of up to one million Starlinks.
• In 2025, Altman discussed the possibility of putting data centers in space during a podcast interview with Wired.

What they’re saying

What’s next

It's unclear whether Altman's change of heart on orbital data centers is directly related to Musk's plans or if it's influenced by a failed deal with a rocket startup. Altman had previously suggested building a Dyson sphere to power AI data centers, so his thoughts on the matter appear to be evolving.