SpaceX has filed plans with the Federal Communications Commission for a proposed million-satellite data network, signaling that Elon Musk’s idea of running AI infrastructure in orbit is more than a thought experiment. The filing follows the formal merger of SpaceX with xAI, tying Musk’s space and AI ventures into what appears to be a shared infrastructure strategy.
In public remarks on the “Cheeky Pint” podcast with John Collison and Dwarkesh Patel, Musk argued that solar panels generate far more power in space than on Earth, making orbital AI clusters economically compelling. He predicted that by 2028, space could become the most cost-effective place to run AI workloads—and that within five years, more AI capacity could be operating in orbit annually than on the ground.
Skeptics note gaps in the argument: energy is only one component of data center costs, and servicing hardware failures in space presents obvious challenges. Still, the FCC has accepted the filing for public comment, and the proposal has drawn unusual attention from FCC leadership, suggesting the plan will receive serious consideration.
With tech companies pouring hundreds of billions into data centers and SpaceX positioned to profit from launches, Musk’s orbital data center vision aligns neatly with the newly merged SpaceX-xAI strategy—especially as the combined entity eyes an IPO in the near future.
