OpenAI CEO Sam Altman has publicly dismissed the idea of building data centres in space, calling it "ridiculous" given current technological and economic constraints. The comments, made during a live interview in New Delhi on Friday, directly contradict the ambitions of SpaceX and xAI CEO Elon Musk.
Altman stated that while orbital data centres could "make sense someday," overwhelming obstacles such as high launch costs and the extreme difficulty of performing hardware repairs in space make the concept unviable for the foreseeable future. "We are not there yet," Altman told the audience. "Orbital data centres are not something that's going to matter at scale this decade."
Musk's vision for a space-based network
Elon Musk's vision stands in stark contrast. In an all-hands meeting with his artificial intelligence company xAI in December, Musk identified orbital data centres as a key ambition. SpaceX stated in February that its goal is to launch a "constellation of a million satellites that operate as orbital data centres" and has begun hiring engineers specifically for this project.
Musk recently argued that SpaceX's acquisition of xAI would accelerate the deployment of these space-based computing hubs. His push comes as the demand for data centre capacity to power AI models and services skyrockets on Earth.
Growing terrestrial strain and space race
The debate occurs against a backdrop of intense strain on terrestrial resources from data centre expansion. A Business Insider investigation found over 1,200 data centres were approved for construction across the United States by the end of 2024, nearly four times the number from 2010. These facilities are known to deplete water resources, strain power grids, and increase pollution, leading to growing local opposition in places like Texas and Oklahoma.
Despite Altman's skepticism, other tech giants are exploring the orbital frontier. Google's Project Suncatcher, unveiled in November 2025, aims to place sun-powered data centres in space. Google CEO Sundar Pichai told Fox News Sunday that the company could begin this as early as 2027.
The fundamental disagreement
The public disagreement highlights a deeper strategic rift between two of the most prominent figures in artificial intelligence and commercial spaceflight. Altman's assessment focuses on immediate practicality and cost, while Musk is betting on a long-term infrastructural shift to orbit.
For now, the vast majority of AI and tech companies continue to invest billions in terrestrial data centre construction, grappling with the environmental and logistical challenges on Earth while the feasibility of an off-world alternative remains a point of contention.