In a way, this entire factor was inevitable. Elon Musk and his coterie have been speaking about AI in house for years—primarily within the context of Iain Banks’ science fiction collection a couple of far-future universe the place sentient spaceships roam and management the galaxy.
Now, Musk sees a chance to comprehend a model of this imaginative and prescient. His firm SpaceX has requested regulatory permission to construct solar-powered orbital information facilities, distributed throughout as many as 1,000,000 satellites, that might shift as a lot as 100 GW of compute energy off the planet. He has reportedly prompt a few of his AI satellites might be constructed on the Moon.
“By far the most affordable place to place AI might be house in 36 months or much less,” Musk stated final week on a podcast hosted by Stripe cofounder John Collison.
He’s not alone. xAI’s head of compute has reportedly wager his counterpart at Anthropic that 1% of world compute might be in orbit by 2028. Google (which has a big possession stake in SpaceX) has introduced an area AI effort referred to as Venture Suncatcher, which is able to launch prototype automobiles in 2027. Starcloud, a start-up that has raised $34 million backed by Google and Andreessen Horowitz, filed its personal plans for an 80,000 satellite tv for pc constellation final week. Even Jeff Bezos has stated that is the longer term.
However behind the hype, what’s going to it really take to get information facilities into house?
In a primary evaluation, immediately’s terrestrial information facilities stay cheaper than these in orbit. Andrew McCalip, an area engineer, has constructed a useful calculator evaluating the 2 fashions. His baseline outcomes present {that a} 1 Gw orbital information heart may cost $42.4B—virtually 3 times its ground-bound equal, due to the up-front prices of constructing the satellites and launching them to orbit.
Altering that equation, specialists say, would require expertise improvement throughout a number of fields, huge capital expenditure, and loads of work on the availability chain for space-grade parts. It additionally is dependent upon prices on the bottom rising as sources and provide chains are strained by rising demand.
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Designing and launching the satellites
The important thing driver for any house enterprise mannequin is how a lot it prices to get something up there. Musk’s SpaceX is already pushing down on the price of attending to orbit, however analysts what it’s going to take to make orbital information facilities a actuality want even decrease costs to shut their enterprise case. In different phrases, whereas AI information facilities might appear to be a narrative a couple of new enterprise line forward of the SpaceX IPO, the plan is dependent upon finishing the corporate’s longest-running unfinished challenge—Starship.
Take into account that the reusable Falcon 9 delivers, immediately, a price to orbit of roughly $3,600/kg. Making house information facilities doable, per Venture Suncatcher’s white paper, would require costs nearer to $200/kg, an 18-fold enchancment which it expects to be out there within the 2030s. At that worth, nonetheless, the vitality delivered by a Starlink satellite tv for pc immediately can be value aggressive with a terrestrial datacenter.
The expectation is that SpaceX’s next-generation Starship rocket will ship these enhancements—no different car in improvement guarantees equal financial savings. Nonetheless, that car has but to turn into operational and even attain orbit; a 3rd iteration of Starship is anticipated to make its maiden launch someday within the months forward.
Even when Starship is totally profitable, nonetheless, assumptions that it’s going to instantly ship decrease costs to clients might not move the odor take a look at. Economists on the consultancy Rational Futures make a compelling case that, as with the Falcon 9, SpaceX is not going to wish to cost a lot lower than its greatest competitor—in any other case the corporate is leaving cash on the desk. If Blue Origin’s New Glenn rocket, for instance, retails at $70 million, SpaceX received’t tackle Starship missions for exterior clients at a lot lower than that, which would depart it above the numbers publicly assumed by house information heart builders.
“There will not be sufficient rockets to launch 1,000,000 satellites but, so we’re fairly removed from that,” Matt Gorman, the CEO of Amazon Net Companies, stated at a latest occasion. “If you consider the price of getting a payload in house immediately, it’s huge. It’s simply not economical.”
Nonetheless, if launch is the bane of all house companies, the second problem is manufacturing value.
“We all the time take as a right, at this level, that Starship’s value goes to be lots of of {dollars} per kilo,” McCalip informed TechCrunch. “Persons are not making an allowance for the satellites are virtually $1,000 a kilo proper now.”
Satellite tv for pc manufacturing prices are the most important chunk of that price ticket, but when high-powered satellites will be made at about half the price of present Starlink satellites, the numbers begin to make sense. SpaceX has made nice advances in satellite tv for pc economics whereas constructing Starlink, its record-setting communications community, and the corporate hopes to attain extra by scale. A part of the reasoning behind 1,000,000 satellites is undoubtedly the price financial savings that come from mass manufacturing.
Nonetheless, the satellites that might be used for these missions have to be giant sufficient to fulfill the complicated necessities for working highly effective GPUs, together with giant photo voltaic arrays, thermal administration techniques, and laser-based communications hyperlinks to obtain and ship information.
A 2025 white paper from Venture Suncatcher gives one solution to evaluate terrestrial and house information facilities by the price of energy, the essential enter wanted to run chips. On the bottom, information facilities spend roughly $570–3,000 for a Kw of energy over a 12 months, rely upon native energy prices and the effectivity of their techniques. SpaceX’s Starlink satellites get their energy from on-board photo voltaic panels as a substitute, however the price of buying, launching, and sustaining these spacecraft delivers vitality at $14,700 per Kw over a 12 months. Put merely, satellites and their parts should get rather a lot cheaper earlier than they’re cost-competitive with metered energy.
The house setting is just not playing around
Orbital information heart proponents typically say that thermal administration is “free” in house, however that’s an oversimplification. With out an environment, it’s really harder to disperse warmth.
“You’re counting on very giant radiators to only have the ability to dissipate that warmth into the blackness of house, and in order that’s loads of floor space and mass that it’s important to handle,” stated Mike Safyan, an government at Planet Labs, which is constructing prototype satellites for Google Suncatcher which can be anticipated to launch in 2027. “It’s acknowledged as one of many key challenges, particularly long run.”
Apart from the vacuum of house, AI satellites might want to take care of cosmic radiation as effectively. Cosmic rays degrade chips over time, they usually may trigger “bit flip” errors that may corrupt information. Chips will be protected with shielding, use rad-hardened parts, or work in collection with redundant error checks, however all these choices contain costly trades for mass. Nonetheless, Google used a particle beam to check the consequences of radiation on its Tensor Processing Items (chips designed explicitly for machine studying purposes). SpaceX executives stated on social media that the corporate has acquired a particle accelerator for simply that function.
One other problem comes from the photo voltaic panels themselves. The logic of the challenge is vitality arbitrage: Placing photo voltaic panels in house makes them anyplace from 5 to eight occasions extra environment friendly than on Earth, and in the event that they’re in the fitting orbit, they are often in sight of the solar for 90% of the day or extra, growing their effectivity. Electrical energy is the principle gasoline for chips, so extra vitality = cheaper information facilities. However even photo voltaic panels are extra sophisticated in house.
House-rated photo voltaic panels product of uncommon earth components are hardy, however too costly. Photo voltaic panels comprised of silicon are low cost and more and more prevalent in house—Starlink and Amazon Kuiper use them—however they degrade a lot sooner resulting from house radiation. That may restrict the lifetime of AI satellites to round 5 years, which suggests they should generate return on funding sooner.
Nonetheless, some analysts assume that’s not such a giant deal, based mostly on how rapidly new generations of chips arrive on the scene. “After 5 or 6 years, the {dollars} per kilowatt hour doesn’t produce a return, and that’s as a result of they’re not cutting-edge,” Philip Johnston, the CEO of Starcloud, informed TechCrunch.
Danny Subject, an government at Solestial, a start-up constructing space-rated silicon photo voltaic panels, says the trade sees orbital information facilities as a key driver of development. He’s talking with a number of firms about potential information heart tasks, and says “any participant who’s large enough to dream is no less than serious about it.” As a long-time spacecraft design engineer, nonetheless, he doesn’t low cost the challenges in these fashions.
“You may all the time extrapolate physics out to a much bigger measurement,” Subject stated. “I’m excited to see how a few of these firms get to a degree the place the economics make sense and the enterprise case closes.”
How do house information facilities slot in?
One excellent query about these information facilities: What is going to we do with them? Are they common function, or for inference, or for coaching? Primarily based on current use circumstances, they will not be fully interchangeable with information facilities on the bottom.
A key problem for coaching new fashions is working 1000’s of GPUs collectively en masse. Most mannequin coaching is just not distributed, however executed in particular person information facilities. The hyperscalers are working to alter this with a view to improve the ability of their fashions, however it nonetheless hasn’t been achieved. Equally, coaching in house would require coherence between GPUs on a number of satellites.
The workforce at Google’s Venture Suncatcher notes that the corporate’s terrestrial information facilities join their TPU networks with throughput within the lots of of gigabpits per second. The quickest off-the-shelf inter-satellite comms hyperlinks immediately, which use lasers, can solely rise up to about 100 Gbps.
That led to an intriguing structure for Suncatcher: It entails flying 81 satellites in formation so they’re shut sufficient to make use of the form of transceivers relied on by terrestrial information facilities. That, after all, presents its personal challenges: The autonomy required to make sure every spacecraft stays in its right station, even when maneuvers are required to keep away from orbital particles or one other spacecraft.
Nonetheless, the Google examine gives a caveat: The work of inference can tolerate the orbital radiation setting, however extra analysis is required to grasp the potential affect of bit-flips and different errors on coaching workloads.
Inference duties don’t have the identical want for 1000’s of GPUs working in unison. The job will be executed with dozens of GPUs, maybe on a single satellite tv for pc, an structure that represents a form of minimal viable product and the possible place to begin for the orbital information heart enterprise.
“Coaching is just not the best factor to do in house,” Johnston stated. “I feel virtually all inference workloads might be executed in house,” imagining every little thing from customer support voice brokers to ChatGPT queries being computed in orbit. He says his firm’s first AI satellite tv for pc is already incomes income performing inference in orbit.
Whereas particulars are scarce even within the firm’s FCC submitting, SpaceX’s orbital information heart constellation appears to anticipate about 100 kw of compute energy per ton28, roughly twice the ability of present Starlink satellites. The spacecraft will function in reference to one another and utilizing the Starlink community to share data; the submitting claims that Starlink’s laser hyperlinks can obtain petabit-level throughput.
For SpaceX, the corporate’s latest acquisition of xAI (which is constructing its personal terrestrial information facilities) will let the corporate stake out positions in each terrestrial and orbital information facilities, seeing which provide chain adapts sooner.
That’s the advantage of having fungible Floating Level Operations Per Second – if you may make it work. “A FLOP is a FLOP, it doesn’t matter the place it lives,” McCalip stated. “[SpaceX] can simply scale till [it] hits allowing or capex bottlenecks on the bottom, after which fall again to [their] house deployments.”
Obtained a delicate tip or confidential paperwork about SpaceX? Attain out to Tim Fernholz at tim.fernholz@techcrunch.com. For safe communication, you possibly can contact him through Sign at tim_fernholz.21.
