Altman dismisses Musk’s plan for space-based data centers

A new clash has surfaced between two of the tech world’s most influential figures.

The latest disagreement centers on Elon Musk’s ambition to move data centers into orbit.

According to Business Insider, OpenAI CEO Sam Altman sharply criticized the idea during a live interview in New Delhi on Friday.

‘Ridiculous’ idea

“I honestly think the idea with the current landscape of putting data centers in space is ridiculous,” Altman said, drawing laughter from the audience.

While he acknowledged that orbital facilities could “make sense someday,” Altman stressed that significant barriers remain, including high launch costs and the challenge of repairing hardware in space.

“We are not there yet,” he added. “There will come a time. Space is great for a lot of things. Orbital data centers are not something that’s going to matter at scale this decade.”

Musk’s vision

Musk, who leads SpaceX and artificial intelligence firm xAI, has made orbital data centers a priority. Business Insider reported that he discussed the concept during an all-hands meeting with xAI employees in December.

In February, SpaceX said it aims to deploy a “constellation of a million satellites that operate as orbital data centers,” and has started recruiting engineers to work on the initiative.

Musk has also suggested that closer integration between SpaceX and xAI could speed up development.

Growing infrastructure demands

The debate comes as technology companies rapidly expand traditional data center construction to support artificial intelligence systems and cloud computing.

Business Insider previously reported that more than 1,200 data centers had been approved across the United States by the end of 2024, nearly four times the number in 2010.

At the same time, large-scale projects in states such as Texas and Oklahoma are increasingly encountering opposition from local communities concerned about environmental and infrastructure impacts.

Sources: Business Insider

This article is made and published by Mikkel Christensen, who may have used AI in the preparation