SpaceX Taps Nvidia for 10-Gigawatt Space AI Push

Generative AI is driving up data centers’ power and cooling requirements, prompting SpaceX founder Elon Musk to extend computing infrastructure into Earth orbit. The concept combines Starlink’s satellite deployment expertise with solar power and optical communications networks. If SpaceX can overcome cooling and maintenance constraints, the project could create a formidable moat in AI hardware and launch capabilities that rivals would struggle to replicate.

SpaceX has unveiled AI1, its first AI data center satellite, featuring a modular design and massive solar arrays. The company aims to deploy 1 GW of space-based computing capacity in 2027. Responding to engineers who questioned the feasibility of dissipating heat in a vacuum, Musk pointed to the more than 10,000 SpaceX satellites already operating in orbit. The project could also generate potential orders for Taiwan’s ODM and optical communications supply chains.

SpaceX is expanding beyond its core rocket-launch and Starlink satellite-internet businesses into space infrastructure and orbital computing. Global spaceports could increase launch frequency, while AI data centers would open a new source of computing revenue. Both are seen as key to supporting an IPO at a $1.75 trillion valuation.

Elon Musk recently proposed building advanced spaceports worldwide, targeting thousands of launches a year. Google is also reportedly in talks to lease orbital AI computing capacity for $920 million a month and deploy solar-powered satellites and TPUs under Project Suncatcher. Anthropic has also expressed interest, while the value of the satellite industry is estimated to reach $447 billion in 2027.