SpaceX Plans Global Spaceports Ahead of IPO, Reportedly Partners With Google on Orbital AI Data Centers

SpaceX has built its growth story around the Starlink satellite network and commercial launch services, using reusable rockets to lower the cost of putting infrastructure into orbit. Early investor Peter Diamandis says markets still substantially undervalue that platform and sees a high probability that the company will eventually exceed a $10 trillion valuation, a scale that would move it far beyond conventional aerospace benchmarks.

The company’s latest ambitions extend into AI infrastructure. SpaceX has signed large AI computing contracts and is planning chip-fabrication capacity and orbital AI data centers, though counterparties, contract values and construction dates have not been disclosed. Elon Musk has predicted that AI could account for 99% of SpaceX’s valuation within five years, with launch systems, chips and computing capacity combined in an unusually integrated operating model.

SpaceX is deepening its push into artificial-intelligence infrastructure by choosing Nvidia as the exclusive computing platform for its AI services. The alliance extends beyond terrestrial data centers into orbital computing, where SpaceX’s satellite and launch capabilities could open a new market for AI processing. The move may reshape competition among chipmakers and emerging cloud providers as power availability and access to advanced accelerators become critical constraints on industry growth.

SpaceX plans to expand its Nvidia-based computing capacity to nearly 10 gigawatts by the end of 2027. The companies are also developing Starmind, a space-based data-center project whose first computing satellites equipped with Nvidia GPUs are scheduled to launch in 2027. The announcement lifted Nvidia shares 3.4%, while rival Advanced Micro Devices fell 7.04%, reflecting investor concern that an exclusive SpaceX-Nvidia architecture could narrow AMD’s opportunities in a potentially large new market.

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.

The rapid expansion of Google’s Gemini Enterprise is driving demand for GPUs and data-center capacity to support enterprise generative AI. To supplement its own infrastructure, Google is turning to SpaceX for computing resources. The deal highlights intensifying competition among technology giants for AI capacity while opening a new revenue stream for SpaceX beyond its satellite and launch businesses ahead of an IPO.

Under the latest agreement, Google will pay SpaceX about $30 billion from 2026 through 2029 to rent roughly 110,000 NVIDIA GPUs at xAI’s computing cluster in Memphis, United States. Reports estimate that Google will pay about $920 million a month, providing SpaceX with revenue under a multiyear contract.

SpaceX is laying the groundwork for an initial public offering and has positioned orbital AI data centers as a future growth pillar. The concept depends on satellite networks, space-based energy and efficient cooling, and could reshape large-scale AI computing infrastructure if realized. CEO Elon Musk has called space the “obvious answer” for AI computing, bringing the associated risks under close market scrutiny.

SpaceX recently warned in its IPO filing that space-based AI data centers face major technical complexities, including heat dissipation, bandwidth bottlenecks and unpredictable environmental conditions, and may ultimately fail to achieve commercial viability. The warning contrasts with Musk’s publicly expressed optimism. Existing reports did not provide the filing date, fundraising amount or planned listing timetable, leaving investors to await subsequent filings for key figures.

SpaceX and Tesla are both part of Elon Musk's business empire. SpaceX has capabilities spanning rockets, satellites and space-based computing, while Tesla brings electric vehicles, energy storage and AI infrastructure. The proposed merger is aimed at integrating AI computing, power supply and cooling technologies, strengthening the two companies' ability to deploy resources in the global AI arms race.

The latest reports indicate that SpaceX could list as early as June 12 at a valuation of up to $1.25 trillion, with its IPO said to be only about two weeks away. Musk has also internally discussed the possibility of merging SpaceX with Tesla. If completed, the combined entity could be valued at $3 trillion and hold about 30,000 BTC in total.