The London Tribune
Tech

Altman calls Musk’s space data center plans ‘ridiculous’ for current AI computing needs

OpenAI CEO Sam Altman dismissed the idea of data centers in space being a viable option in the next few years as SpaceX CEO Elon Musk pursues their deployment.
“I honestly think the idea with the current landscape of putting data centers in space is ridiculous,” Altman said in an interview with Indian Express. “It will make sense someday.”
Altman said that space-based artificial intelligence (AI) data center projects would have to deal with high launch costs as well as operational and maintenance challenges, like how to fix a broken or damaged component while the data center is in orbit.
“We are not there yet. There will come a time. Orbital data centers are not something that’s going to matter at scale this decade,” Altman said in the interview.
DATA CENTERS IN OUTER SPACE EMERGE AS SOLUTION TO AI’S MASSIVE ENERGY REQUIREMENTS
SpaceX’s Musk said earlier this month at an event announcing SpaceX’s acquisition of xAI that the energy demands of AI will require moving data centers to space because of the strain it puts on the environment.
“In the long term, space-based AI is obviously the only way to scale,” Musk said. “My estimate is that within 2 to 3 years, the lowest cost way to generate AI compute will be in space.”
SpaceX’s merger with xAI, the AI company Musk founded that went on to acquire the X social media platform, aims to create a more than $1 trillion company ahead of a planned initial public offering that will enable them raise capital and speed up plans to deploy data centers in space.
SPACEX ACQUIRES XAI IN RECORD-SETTING DEAL VALUED AT OVER $1T
SpaceX recently filed a document with the Federal Communications Commission requesting to launch up to 1 million satellites that would function as data centers in Earth’s orbit.
Musk said in a memo outlining his plans that SpaceX aims to put a million tons of satellites into orbit per year with 100 kilowatts of compute power per ton, adding 100 gigawatts of AI computing capacity per year.
DATA CENTER BOOM POWERING AI REVOLUTION MAY DRAIN US GRIDS – AND WALLETS
Other tech companies pursuing space-based data centers include Google, as CEO Sundar Pichai told “Fox News Sunday” that the company could put solar-powered data centers in space as soon as next year as part of what’s known as Project Suncatcher.
Amazon Web Services CEO Matt Garman said at the Cisco AI Summit earlier this month, “there are not enough rockets to launch a million satellites yet, so we’re, like, pretty far from that.” 
GET FOX BUSINESS ON THE GO BY CLICKING HERE
“If you think about the cost of getting a payload in space today, it’s massive,” Garman added. “It is just not economical.”

Related posts

With no missile alerts and a regime’s internet blackout, app offers lifeline to Iranian civilians

Robert Wilkins

Spotify now represents one-third of the music industry’s total recorded revenue in 2025

Robert Wilkins

Tech titans Elon Musk and Sam Altman head to court in trial over OpenAI: What to know

Robert Wilkins

Apple sees biggest sales jump in 4 years, powered by ‘staggering’ iPhone demand

Robert Wilkins

Musk points to highest ‘ever’ usage of X amid US-Israel strikes on Iran

Robert Wilkins

Judge lets states pursue claims that Meta designed Facebook and Instagram to addict children

Robert Wilkins