"Google and SpaceX are in talks to launch orbital data centers in space, reports The Wall Street Journal, citing sources familiar with the matter."
"The potential deal comes as SpaceX gears up for its $1.75 trillion IPO later this year, selling investors on the idea that data centers in space will be the cheapest place to put AI compute within the next few years. It also follows SpaceX's deal with Anthropic last week to use computing resources from xAI's data center in Memphis, Tennessee, with the potential to work together on orbital ones in the future."
"Elon Musk has created hype for orbital data centers, claiming they are cheaper to operate. Advocates also point out they are free from local backlash that U.S. ground-based buildouts attract. However, as TechCrunch recently reported, today's terrestrial data centers are much cheaper than those in orbit once satellite construction and launch costs are factored in."
"Google is reportedly talking to other rocket-launch companies, as well. The company also plans to launch prototype satellites by 2027 as part of an initiative called Project Suncatcher, announced late last year. Google invested $900 million in SpaceX in 2015, according to regulatory filings."
Google and SpaceX are reportedly discussing a deal to launch orbital data centers in space. SpaceX is preparing for a large IPO and is positioning orbital data centers as the cheapest way to place AI compute in the next few years. The talks follow SpaceX’s recent arrangement with Anthropic to use computing resources from xAI’s Memphis data center, with potential collaboration on orbital systems later. Google is also reportedly engaging other rocket-launch companies and plans prototype satellites by 2027 under Project Suncatcher. Claims that orbital facilities avoid local backlash and are cheaper are challenged by analyses that account for satellite construction and launch costs.
Read at TechCrunch
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