Google and SpaceX are in talks to launch orbital data centers into space, reports The Wall Street Journal said, citing sources familiar with the matter.
The potential deal comes as SpaceX prepares to $1.75 trillion IPO Later this year, selling investors on the idea that data centers in space will be the cheapest place to do AI computations over the next few years. It also follows SpaceX’s deal with Anthropic last week to utilize computing resources from xAI’s data center in Memphis, Tennessee, with the potential to work together on orbital resources in the future. (SpaceX acquired xAI in February.)
Google is also reportedly talking to other rocket-launch companies. The company also plans to launch a prototype satellite by 2027 as part of an initiative called Project Suncatcher announced late last year.
Elon Musk has created a stir For orbital data centers, claiming that they are cheaper to operate. Advocates also say they are free from the local backlash that American ground-based buildouts attract. However, like TechCrunch recently reportedAfter factoring in satellite manufacturing and launch costs, today’s terrestrial data centers are much cheaper than those in orbit.
According to this, Google invested $900 million in SpaceX in 2015 regulatory filing.
TechCrunch has reached out to Google and SpaceX for comment.
