Google and SpaceX are reportedly in discussions regarding the launch of orbital data centers into space, according to sources familiar with the matter cited by The Wall Street Journal.
This potential collaboration emerges as SpaceX prepares for its anticipated $1.75 trillion initial public offering later this year. A key part of its investor pitch is the assertion that space-based data centers will offer the most cost-effective solution for AI computing within the next few years. The talks also follow Anthropic's recent agreement with SpaceX to utilize computing resources from xAI's data center in Memphis, Tennessee, with future potential for joint development of orbital facilities. SpaceX had acquired xAI in February.
Google's interest in space-based infrastructure extends beyond SpaceX, as the company is reportedly engaging with other rocket-launch providers. Furthermore, Google revealed plans late last year for an initiative named Project Suncatcher, which aims to launch prototype satellites by 2027.
Elon Musk has been a significant proponent of orbital data centers, advocating for their lower operational costs. Supporters also highlight their immunity from the local opposition often faced by ground-based data center developments in the U.S. However, a recent report by TechCrunch noted that current terrestrial data centers remain considerably more economical than their orbital counterparts once satellite construction and launch expenses are factored in.
Historical financial ties between the companies include Google's $900 million investment in SpaceX in 2015, as documented in regulatory filings.
TechCrunch has attempted to contact both Google and SpaceX for comment regarding these developments.
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