The commercial space industry is entering a new era, driven by trends in high-capacity, low-cost operations, while space computing is pushing the boundaries of the sector. According to reports, OpenAI is exploring the establishment, investment, or acquisition of a rocket company to compete with Elon Musk in space computing. U.S. tech giants are increasingly investing in space computing, and the investment community is recognizing its vast commercial potential. With China's StarNet and G60 Starlink constellations entering mass production and the operational deployment of the Hainan Commercial Space Launch Site and commercial rockets, the industry is poised for exponential growth, opening up a trillion-dollar market and creating significant opportunities for related supply chains.
▍OpenAI Plans Rocket Venture to Compete with Musk in Computing OpenAI CEO Sam Altman is reportedly seeking to establish, invest in, or acquire a rocket company to compete with Elon Musk in space computing. OpenAI has already engaged with Stoke Space, a reusable rocket company founded by former Blue Origin employees. Stoke Space specializes in full-flow staged combustion engine technology and recently secured $510 million in Series D funding, led by the U.S. Innovation Technology Fund (USIT). The company has also obtained a $100 million credit line from Silicon Valley Bank, bringing its total funding close to $1 billion.
▍Space Computing Gains Consensus Among U.S. Tech and Investment Circles U.S. tech giants are accelerating their space computing initiatives: Jeff Bezos predicted at Italy’s Technology Week that GW-level data centers will be built in space within the next 10–20 years. On November 4, Elon Musk announced plans to expand Starlink V3 satellites for space data centers, later tweeting that Starship will enable large-scale deployment of computing satellites. On November 2, Nvidia sent its H100 GPU into space, while Google unveiled its "Light Catcher Project," aiming to launch two prototype space computing satellites by early 2027. The investment community is also recognizing the sector’s potential—SpaceX is reportedly raising funds at an $800 billion valuation, surpassing OpenAI as the most valuable private U.S. company. Although Musk later denied rumors of a 2026 IPO, the news underscores investor confidence in SpaceX and space computing.
▍Low PUE and Energy Costs Make Space Computing a New AI Trend As improvements in computing chip performance slow, AI development increasingly depends on data center scale. With electricity consumption accounting for over half of operational costs, the U.S.-China AI race is shifting toward energy competition. Traditional data centers have a Power Usage Effectiveness (PUE) of around 1.4, whereas space data centers—benefiting from simplified cooling—could theoretically achieve a PUE close to 1, drastically reducing energy use. Space-based solar power stations, optimally positioned, could operate over 8,000 hours annually, significantly lowering electricity costs. Co-deploying space data centers and solar stations, using high-energy lasers for power transmission, could resolve computing energy demands and unlock new growth potential, emerging as a key trend in AI development. However, space computing satellites require deployment in dawn-dusk orbits—a scarce resource governed by the ITU’s "first-come, first-served" principle—intensifying competition among major nations and potentially accelerating China’s space computing initiatives.
▍Satellites Evolve into Key AI Platforms Unlike drones or robots designed to replace manned systems, satellites are inherently unmanned, aligning with automation and AI trends. Traditionally limited to communication, navigation, and remote sensing, satellites now feature enhanced capabilities: broadband communication replacing narrowband, phased-array antennas replacing dish antennas, and onboard processing improving real-time data analysis. Integration of multiple functions (communication-navigation-remote sensing) and new computing applications further highlight their evolution. As satellite complexity grows, so does the demand for AI, making satellites a critical platform for cloud-edge and onboard computing applications.
▍Risk Factors: Potential setbacks include delays in China’s satellite internet constellation deployment, space computing projects, satellite launch schedules, ground infrastructure development, and commercial space progress, as well as faster breakthroughs in foreign satellite launch technologies.
▍Investment Strategy: China’s space industry is on a fast track, with StarNet and G60 Starlink advancing mass production, alongside the Hainan Commercial Space Launch Site and rockets coming online. The trillion-dollar space computing sector presents major opportunities. Key focus areas include: 1) Solar cells to power computing demands 2) Laser modules for inter-satellite/ground data transmission 3) Satellite manufacturing as computing platforms 4) Rocket launches to reduce space computing costs 5) Ground terminals for end-user data center access.
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