MW Elon Musk says SpaceX doesn't need 'magic' to put AI data centers up in space
By William Gavin
Critics say that setting up orbital data centers is easier said than done. But Musk argues that it's not a 'super hard problem' to solve.
SpaceX CEO Elon Musk has made space-based artifificial-intelligence data centers core to the company's mission.
SpaceX on Monday offered the closest look yet into its plans to eventually operate data centers in space, a technology it's billed as central to its future.
In a roughly 31-minute video posted on Monday, SpaceX $(SPCX)$ CEO Elon Musk and other company leaders discussed the company's focus on orbital artificial-intelligence data centers powered by the sun. Musk and other leaders in the space industry view that technology as key to meeting the ever-growing energy needs of AI companies.
In its initial-public-offering filing, SpaceX said its projected $26.5 trillion AI total addressable market will be "constrained by Earth's inability to rapidly scale power generation." The company is seeking a $1.75 trillion valuation and aims to go public later this week in what is expected to be a record-setting IPO.
Read more: This Big Tech investor's warning for traders: Watch out for the SpaceX IPO
In the video, Musk unveiled a draft version of what SpaceX's first AI satellite may look like. Satellites could be connected to one another through laser links, or to SpaceX's Starlink constellations, Musk said.
SpaceX on Monday revealed a draft version of its planned space-based artificial-intelligence data center.
At peak performance, SpaceX said the satellite would be capable of handling 150 kilowatts of AI computing. That's roughly comparable to Nvidia's (NVDA) GB300 racks used in data centers on Earth, according to Musk.
"Part of what I want to convey here is that there's not some 'magic' that's necessary, that doesn't exist for AI satellites," Musk said in the video. "A lot of this is technology we've already made for Starlink V3 satellites. We don't think this is a super hard problem compared to things we already do."
Musk has been optimistic about putting data centers in space, forecasting a two- or three-year timeline. In the video, he said that SpaceX will "try to" achieve a "roughly annualized rate" of 1 gigawatt per year of AI computing power in space by the end of 2027. SpaceX would then seek to scale that by an "order of magnitude" each year, eventually reaching a terawatt of AI computing.
That plan, which Musk said should be taken with a "grain of salt," is more ambitious than what SpaceX laid out in its IPO filing. The company had said it intends to deploy its first satellites as early as 2028 and begin monetizing capacity by the end of the decade.
Others have been more cautious about their timelines, including Blue Origin and Amazon (AMZN) founder Jeff Bezos, pointing to roadblocks like pricy AI chips or launch costs. For now, the economics just don't make sense, according to researcher Andrew McCalip's model.
SpaceX plans to drive down launch costs with its Starship mega-rocket and create its own AI chips with the Terafab, a planned factory it's working on with partners Tesla $(TSLA)$ and Intel $(INTC)$. SpaceX has asked the Federal Communications Commission to approve the launch of up to 1 million AI satellites to low-Earth orbit. Rivals have much less ambitious plans.
See more: Elon Musk needs the cultish support of everyday investors to pull off the massive SpaceX IPO
-William Gavin
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June 08, 2026 18:59 ET (22:59 GMT)
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