"'In the long term, space-based AI is obviously the only way to scale,' Musk wrote in a memo announcing that SpaceX would acquire his AI company, xAI,earlier this month. SpaceX says its goal is to launch a 'constellation of a million satellites that operate as orbital data centers,' and it's now hiring to make it happen. Each will generate about 100 kW of compute power per ton and would add 100 gigawatts of AI compute capacity annually, the company says."
"Like many of Musk's ambitious ideas, some have questioned the viability of this one. Musk, typically, is undeterred. He doubled down on the plan this week on the Dwarkesh Podcast. 'You can mark my words. In 36 months, but probably closer to 30 months, the most economically compelling place to put AI will be space,' Musk, who is famous for missing deadlines, said. 'It will then get ridiculously better to be in space.'"
SpaceX plans a constellation of one million satellites to function as orbital data centers, each producing about 100 kW of compute per ton and adding roughly 100 gigawatts of AI compute capacity annually. The initiative targets conservation of energy, capital, and terrestrial land by relocating large-scale AI compute to orbit. SpaceX projects space will become the most economically compelling location for AI within 30 to 36 months. Critics raise concerns about maintenance and servicing costs and note that energy constitutes only about 10–15% of data center operating expenses, potentially offsetting savings. SpaceX frames the approach as ensuring reliable energy availability for AI scaling.
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