A new frontier in the tech rivalry has moved into orbit. Jeff Bezos and Elon Musk are now competing to build artificial intelligence data centers in space, according to a new report. This high-stakes push aims to solve the massive energy and cooling demands of Earth-bound AI.

The Wall Street Journal reported this development on Wednesday, December 10. It highlights a strategic shift as tech giants seek unlimited solar power and relief for our planet’s strained infrastructure.
Blue Origin Targets Orbital AI Infrastructure
Jeff Bezos’s aerospace company, Blue Origin, has been developing core technologies for space-based data centers for over a year. This effort is led by a dedicated team. The initiative aligns with Bezos’s long-term vision of moving heavy industry off Earth.
Bezos himself predicted this shift in October. He stated that gigawatt-scale data centers will be built in orbit within 10 to 20 years. He believes they will eventually undercut the cost of terrestrial facilities.
“These giant training clusters… will be better built in space, because we have solar power there, 24/7,” Bezos said. The company’s progress is supported by advances in its New Glenn rocket. Its large payload capacity is key for launching the necessary satellite clusters.
SpaceX Plans AI-Powered Starlink Satellites
Elon Musk’s SpaceX is pursuing a parallel path into orbital AI computing. The company is developing an upgraded generation of Starlink satellites. These new satellites would be capable of hosting AI compute payloads onboard.
This ambitious plan would effectively turn Starlink satellites into a constellation of floating AI supercomputers. They would process data in space and beam the results back to Earth. This approach leverages SpaceX’s existing satellite network and launch capabilities.
The move addresses the same core challenges Blue Origin is targeting. Earth-based AI facilities are consuming enormous amounts of electricity and water. Orbital data centers offer a potentially cleaner, more scalable solution.
The race for orbital AI is now officially on, with two of the world’s most influential tech leaders leading the charge. This competition could fundamentally reshape where and how the world’s most powerful computing happens. The future of artificial intelligence may indeed be written in the stars.
Thought you’d like to know
Q1: Why build AI data centers in space?
Space offers nearly unlimited solar power with no atmospheric interference. It also removes the strain these power-hungry facilities place on Earth’s energy grids and water resources used for cooling.
Q2: Who is leading this effort?
Jeff Bezos’s company Blue Origin and Elon Musk’s SpaceX are both actively developing the technology. According to The Wall Street Journal, both have dedicated teams working on orbital computing solutions.
Q3: How would they get the data centers into orbit?
Blue Origin would use its new, reusable New Glenn heavy-lift rocket. SpaceX would leverage its proven Falcon rockets and the Starship spacecraft currently in development to launch satellite clusters.
Q4: What is the biggest challenge for orbital AI?
The initial cost of launching heavy infrastructure into space remains extremely high. Engineers must also solve the problem of dissipating heat in the vacuum of space without traditional liquid cooling.
Q5: When could we see the first operational space data center?
Jeff Bezos has projected a timeline of 10 to 20 years for gigawatt-scale orbital data centers. Development is in early stages, but both companies are moving quickly to advance the required technology.
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