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OpenAI CEO Sam Altman calls Elon Musk’s house information facilities ‘ridiculous’

EditorBy EditorFebruary 23, 2026No Comments3 Mins Read
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OpenAI CEO Sam Altman calls Elon Musk’s house information facilities ‘ridiculous’
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FOX Enterprise correspondent Madison Alworth reviews on Lonestar planning A.I. information facilities in house, with satellites launching this fall and objectives for lunar facilities by 2030 on Varney & Co.

OpenAI CEO Sam Altman dismissed the concept of information facilities in house being a viable possibility within the subsequent few years as SpaceX CEO Elon Musk pursues their deployment.

“I actually assume the concept with the present panorama of placing information facilities in house is ridiculous,” Altman mentioned in an interview with Indian Specific. “It would make sense sometime.”

Altman mentioned that space-based synthetic intelligence (AI) information middle initiatives must take care of excessive launch prices in addition to operational and upkeep challenges, like the best way to repair a damaged or broken element whereas the info middle is in orbit.

“We aren’t there but. There’ll come a time. Orbital information facilities usually are not one thing that is going to matter at scale this decade,” Altman mentioned within the interview.

DATA CENTERS IN OUTER SPACE EMERGE AS SOLUTION TO AI’S MASSIVE ENERGY REQUIREMENTS

OpenAI CEO Sam Altman mentioned that whereas space-based information facilities could also be viable sooner or later, they don’t seem to be prone to be deployed at scale this decade. (Ken Cedeno/Reuters / Reuters)

SpaceX’s Musk mentioned earlier this month at an occasion saying SpaceX’s acquisition of xAI that the vitality calls for of AI would require shifting information facilities to house due to the pressure it places on the setting.

“In the long run, space-based AI is clearly the one approach to scale,” Musk mentioned. “My estimate is that inside 2 to three years, the bottom price approach to generate AI compute will probably be in house.”

SpaceX’s merger with xAI, the AI firm Musk based that went on to amass the X social media platform, goals to create a greater than $1 trillion firm forward of a deliberate preliminary public providing that may allow them elevate capital and pace up plans to deploy information facilities in house.

SPACEX ACQUIRES XAI IN RECORD-SETTING DEAL VALUED AT OVER $1T

Elon Musk in a thoughtful repose with his finger on his chin

SpaceX CEO Elon Musk sees space-based information facilities as an answer to environmental challenges they pose on Earth. (Marc Piasecki/Getty Photographs / Getty Photographs)

SpaceX not too long ago filed a doc with the Federal Communications Fee requesting to launch as much as 1 million satellites that will perform as information facilities in Earth’s orbit.

Musk mentioned in a memo outlining his plans that SpaceX goals to place 1,000,000 tons of satellites into orbit per 12 months with 100 kilowatts of compute energy per ton, including 100 gigawatts of AI computing capability per 12 months.

DATA CENTER BOOM POWERING AI REVOLUTION MAY DRAIN US GRIDS – AND WALLETS

SpaceX launches Starship on May 27, 2025

SpaceX is planning a constellation of satellites that may function space-based information facilities. (Joe Skipper/Reuters)

Different tech corporations pursuing space-based information facilities embody Google, as CEO Sundar Pichai advised “Fox Information Sunday” that the corporate might put solar-powered information facilities in house as quickly as subsequent 12 months as a part of what’s often called Venture Suncatcher.

Amazon Net Providers CEO Matt Garman mentioned on the Cisco AI Summit earlier this month, “there usually are not sufficient rockets to launch 1,000,000 satellites but, so we’re, like, fairly removed from that.” 

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“If you concentrate on the price of getting a payload in house in the present day, it is large,” Garman added. “It’s simply not economical.”

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