Hajra Naz
OpenAI CEO Sam Altman isn’t buying Elon Musk’s latest big idea.
Asked about Musk’s plan to put data centers in space, Altman didn’t hesitate. The concept, he said at a recent live event, is “ridiculous”—at least for now.
“The conditions for orbital data centres are not ripe yet,” Altman told the audience, pushing back on the growing buzz around space-based computing.
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His comments follow an announcement from SpaceX, which has floated plans to build satellite-powered computing infrastructure in orbit. The company is reportedly exploring a massive constellation—potentially up to a million satellites—that could function as data centers in space. It has already begun hiring engineers for the effort.
Altman, however, argued that the idea runs into immediate practical limits. Rocket launches are still extremely expensive. Hardware breaks. Fixing servers in orbit is a very different challenge from swapping out parts in a warehouse on Earth.
“We are not there yet,” he said plainly, adding that orbital data centers are unlikely to matter at scale anytime this decade.
Musk, unsurprisingly, sees things differently. He has suggested that SpaceX could eventually work alongside his AI company, xAI, to accelerate the development of space-based computing systems.
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The debate comes as AI companies pour billions into traditional, Earth-bound data centers to power large language models and other advanced systems. But those facilities are drawing increasing criticism. They consume vast amounts of electricity and water, and in many communities, residents are pushing back over environmental concerns.
For now, the idea of moving servers into orbit may sound futuristic—even bold. But according to Altman, it’s still far from practical reality.
