Google and SpaceX in talks to launch orbital data centers ahead of $1.75 trillion IPO

Report: Google and SpaceX in talks to put data centers into orbit

Google and SpaceX are in talks to launch orbital data centers in space, reports The Wall Street Journal, citing sources familiar with the matter. The potential deal comes as SpaceX gears up for its $1.75 trillion IPO later this year, selling investors on the idea that data centers in space will be the cheapest place to put AI compute within the next few years. It also follows SpaceX's deal with Anthropic last week to use computing resources from xAI's data center in Memphis, Tennessee, with the potential to work together on orbital ones in the future. (SpaceX acquired xAI in February.) Google is reportedly talking to other rocket-launch companies, as well. The company also plans to launch prototype satellites by 2027 as part of an initiative called Project Suncatcher, announced late last year. Elon Musk has created hype for orbital data centers, claiming they are cheaper to operate. Advocates also point out they are free from local backlash that U.S. ground-based buildouts attract. However, as TechCrunch recently reported, today's terrestrial data centers are much cheaper than those in orbit once satellite construction and launch costs are factored in. Google invested $900 million in SpaceX in 2015, according to regulatory filings. TechCrunch has reached out to Google and SpaceX for comment.

Google is reportedly considering working with SpaceX on orbital data centers - Engadget

Google is in negotiations with SpaceX to secure the company's help in its own nascent effort to put orbital data centers in space, reports The Wall Street Journal. If the two sides were to reach a deal, it would see two competitors working together. Project Suncatcher, the moonshot Google announced to explore the feasibility of space-based data centers, actually predates SpaceX's own foray. Google shared news of Suncatcher last November, while Elon Musk announced that SpaceX and xAI were merging -- with the intent of launching 1 million orbital data satellites -- this past February. According to the Journal, Google is also in discussions with other rocket-launch companies. The search giant is already working with Planet Labs to design and build the satellites it plans to put into space. Both Google CEO Sundar Pichai and Elon Musk have presented orbital data centers as an inevitability. "There's no doubt to me that a decade or so away, we'll be viewing it as a more normal way to build data centers," Pichai told Fox News in an interview in November. Musk, in his announcement of the SpaceX and xAI merger, meanwhile said that within three years satellites would be the cheapest way to generate AI compute power. However, experts Engadget spoke to in February expressed doubts whether it's possible to carry out AI inference in space at scale. GPUs in satellites would be subjected to constant cosmic radiation that would affect their ability to perform error-free calculations, and cooling them in the near vacuum of space, where the only way to dissipate heat is to slowly radiate it out, is difficult. On top of all that, putting millions of satellites in low Earth orbit is very likely to have extremely detrimental effects on the planet's atmosphere and the ability of other companies and governments to fly spacecraft safely.

Google is in talks with SpaceX on orbital data center partnership

Google is in negotiations with SpaceX to collaborate on the development of orbital data centers, according to a report from The Wall Street Journal. This potential partnership would see the two companies, traditionally competitors, working together on the initiative. Google's Project Suncatcher, aimed at exploring the feasibility of space-based data centers, was announced last November. SpaceX, led by Elon Musk, has announced its merger with xAI in February, which includes plans to launch 1 million orbital data satellites. The Wall Street Journal also reported that Google is in talks with other rocket-launch companies and is collaborating with Planet Labs to design and build its satellites. Both Sundar Pichai, CEO of Google, and Elon Musk see orbital data centers as an inevitable evolution in data management. Pichai stated in a November interview, "There's no doubt to me that a decade or so away, we'll be viewing it as a more normal way to build data centers." Musk echoed this sentiment, referencing the merger and asserting that within three years, satellites would be the cheapest option for generating AI compute power.

Google, SpaceX Reportedly In Talks For Orbital Data Centers Ahead Of Musk's Mammoth IPO - Alphabet (NASDA

Elon Musk's rocket company, SpaceX and Alphabet Inc (NASDAQ:GOOGL) are reportedly negotiating a launch deal to put data centers into orbit. The speculative technology would bypass Earth's massive power grid constraints just as SpaceX gears up for what may become the biggest public listing in history. Google plans to launch prototype satellites by 2027 under its Project Suncatcher initiative. The search giant already owns a 6.1% stake in SpaceX and is reportedly working with Planet Labs PBC (NYSE:PL) on the satellite builds. Space-based computing is quickly becoming a core part of the SpaceX pitch to investors. The company confidentially filed for a public listing this summer with a targeted valuation between $1.75 trillion and $2 trillion. AI Consolidation In Orbit To bolster its balance sheet ahead of the roadshow, SpaceX recently merged with Musk's xAI in a deal valuing the combined entity at $1.25 trillion. The company also took an option to acquire AI coding startup Cursor for $60 billion later this year. The rocket giant also locked down a major agreement to supply terrestrial computing power to AI startup Anthropic using 220,000 Nvidia GPUs. Anthropic has already expressed interest in utilizing SpaceX's future orbital data centers. A successful orbital test could fundamentally shift how tech giants scale artificial intelligence infrastructure. Google CEO Sundar Pichai recently noted that "tiny racks of machines" in satellites could become a normal way to build data centers within a decade. What The Traders See The Polymarket contract on whether the SpaceX IPO hits a $2.2 trillion valuation sits at 47%. $2 trillion is at 71%. Polymarket expects a SpaceX IPO to happen in June. June 15th is at 9%, and June 30th is at 70%. SpaceX has an 87% chance of being the largest IPO this year, with Anthropic well behind with 9%. With Google at the table, orbital data centers look less like vaporware and more like a legitimate, incoming infrastructure shift. Image: Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Google and SpaceX may build data centres in space for future AI needs: Report

Google also plans to launch prototype satellites by 2027 under a project known as Project Suncatcher. It seems like tech companies are now looking beyond Earth to support the growing demand for AI. According to The Wall Street Journal, Google and SpaceX are discussing plans to develop data centres in space. The two companies are reportedly exploring the idea of placing computing infrastructure in orbit instead of building more facilities on land. The discussions come at a time when SpaceX is reportedly preparing for its $1.75 trillion IPO later this year. The company is said to be pitching the idea that orbital data centres could eventually become cheaper to operate than traditional ones on Earth. Supporters of the concept also believe that building data centres in space could avoid local opposition often faced by large land-based projects in the US. Also read: Sam Altman says Elon Musk wanted OpenAI under family control, hurt company culture with pressure However, experts are still divided on whether the idea is practical right now. A recent report by TechCrunch noted that data centres on Earth are currently much more affordable because launching satellites and building infrastructure in space remains extremely expensive. Google is reportedly not limiting itself to SpaceX. The company is said to be in talks with other rocket-launch firms as well. The tech giant is also planning to launch prototype satellites by 2027 under a project known as Project Suncatcher, which was announced last year. Also read: OpenAI brings Daybreak to rival Claude Mythos: Here is what it can do The report also highlights the growing relationship between AI and space companies. Last week, Anthropic partnered with SpaceX to use computing resources from xAI's data centre in Memphis, Tennessee. The collaboration could later expand to include orbital computing projects. Elon Musk has been one of the biggest supporters of the idea of space-based data centres. Google and SpaceX already share a history. In 2015, Google invested around $900 million in SpaceX, according to regulatory filings.