Heated Rivals Musk and Altman Disagree on One More Thing: Data Centers in Space

Gizmodo · Feb 23, 2026 · Collected from RSS

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As SpaceX founder Elon Musk begins laying the groundwork for a Starlink-powered data center in orbit, his AI billionaire nemesis expressed skepticism over the need to establish orbital data centers anytime soon. During a recent interview, OpenAI CEO Sam Altman shut down the idea of launching orbital data centers. “I honestly think the idea with the current landscape of putting data centers in space is ridiculous,” Altman is quoted in Business Insider as saying. More space for data centers There are more than 5,000 AI data centers currently in the United States, with that number expected to multiply in the coming years. Tech billionaires like Musk are now looking to the skies as the next frontier for housing these energy-intensive facilities. In late January, SpaceX filed an FCC application to launch an orbital data center constellation of up to one million Starlinks. The move aligns with Musk’s plans for a SpaceX IPO later this year, with earlier reports suggesting the decision is in part to raise capital to support an orbital data center venture. Altman himself has toyed with the idea of launching data centers into space. “I do guess a lot of the world gets covered in data centers over time,” Altman said during a podcast interview in 2025, Wired reported. “Maybe we put [data centers] in space.” There were also reports late last year of Altman potentially investing billions into Stoke Space, a Seattle-based startup that’s developing a reusable rocket, to gain a controlling stake in the company. Although no deal was made, Altman reportedly intended on either buying or partnering with a rocket company so that he would be able to deploy AI data centers to space. A change of heart In his recent appearance, however, Altman seems to dismiss the idea of launching data centers into space within the next 10 years, according to Business Insider. He added that the idea of orbital data centers could make sense one day, but the cost of launching them to space remains an obstacle. Another challenge is figuring out how to fix a computer chip in space, according to Altman. “We are not there yet. There will come a time,” Altman is quoted as saying. “Space is great for a lot of things. Orbital data centers are not something that’s going to matter at scale this decade.” It’s not clear whether the change of heart is marginally fueled by Musk’s plans to launch orbital data centers or if a failed deal with a rocket startup inspired Altman to reconsider the idea. Altman had also previously suggested building a Dyson sphere to harness energy from the Sun and feed the growing demand of AI data centers. So, clearly his thoughts are still a work in progress.