Asger Risom
Sam Altman called Elon Musk’s plan to put data centers in space “ridiculous,” arguing that high launch costs and repair challenges make orbital computing unrealistic at scale this decade.
OpenAI CEO Sam Altman has dismissed Elon Musk’s plan to build orbital data centers as unrealistic — at least for now.
“I honestly think the idea with the current landscape of putting data centers in space is ridiculous,” Altman said during a live interview with local media in New Delhi on Friday, drawing laughter from the audience.
Altman acknowledged the concept could “make sense someday,” but said the economics and logistics remain prohibitive.
“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 pushes ahead with orbital ambitions
Musk, who leads SpaceX and xAI, has made space-based computing infrastructure a priority. In February, SpaceX said it aims to launch a “constellation of a million satellites that operate as orbital data centers.” The company has reportedly begun hiring engineers for the effort.
During a recent all-hands meeting, Musk said SpaceX’s acquisition of xAI would help accelerate deployment of orbital data centers.
The concept would shift AI infrastructure beyond Earth, potentially reducing strain on terrestrial energy grids — though it introduces challenges such as launch costs and the difficulty of repairing hardware in orbit.
A growing infrastructure race
While Musk looks skyward, most tech giants are continuing to expand massive data center networks on Earth. AI systems, including large language models and chatbots, depend on enormous computing power housed in energy-intensive facilities.
Google has also signaled interest in space-based infrastructure. Its Project Suncatcher, unveiled in late 2025, aims to explore solar-powered data centers in orbit, with CEO Sundar Pichai suggesting deployment could begin as early as 2027.
At the same time, traditional data center expansion is facing pushback. An investigation last year found that more than 1,200 data centers had been approved across the US by the end of 2024 — nearly four times the number in 2010 — sparking concerns about water use, electricity demand, and local environmental impacts.
The debate underscores a widening divide in the AI infrastructure race: whether the future of computing will be grounded on Earth — or launched into orbit.
Sources: Business Insider
