Sam Altman explored buying rocket startup to challenge SpaceX on space-based AI data centers

Sam Altman Pursued Controlling Stake in Reusable Rocket Startup

OpenAI CEO Sam Altman explored raising several billion dollars to secure a controlling stake in Stoke Space, a Seattle-based reusable rocket startup founded by former Blue Origin engineers, according to reports from The Wall Street Journal 1

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. The discussions, which began in summer 2024 and picked up momentum in the fall, centered on either forging a partnership or acquiring outright control of the company. Stoke Space is developing Nova, a fully reusable, medium-lift vehicle expected to launch in 2026, positioning itself as an emerging competitor in the commercial launch market 1

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. While the talks are no longer active, they signal Altman's ambitions to enter the space launch sector and challenge SpaceX dominance.

Orbital Data Centers Target Escalating Data Requirements of AI

The push toward space-based AI data centers stems from the escalating data requirements of AI and mounting energy strain on Earth's infrastructure. More than 5,000 AI data centers currently operate in the United States, with electricity demand projected to increase 50% by 2027 and as much as 165% by 2030, according to Goldman Sachs 2

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. Altman addressed these AI computing needs during a July podcast appearance, speculating that "a lot of the world gets covered in data centers over time" but suggesting orbital infrastructure as an alternative 1

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. Space-based facilities could harness solar energy through panels, reducing environmental pressure while meeting growing AI computing demands 2

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. This vision aligns with Altman's previous suggestion of building a Dyson sphere to capture the Sun's energy for powering AI data centers.

Move Would Rival Elon Musk Across Multiple Fronts

Altman's investment in Stoke Space would have opened a new competitive front with Elon Musk, who has already announced plans to scale up Starlink V3 satellites as orbital data centers for AI applications 1

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. "SpaceX will be doing this," Musk wrote on his X social media platform. The rivalry between Altman and Musk began over disagreements about OpenAI's future direction, and entering the space frontier could intensify their feud 2

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. Beyond Musk, other tech leaders have expressed interest in orbital data centers, including Amazon founder Jeff Bezos through Blue Origin and Google CEO Sundar Pichai, who is partnering with Planet Labs on Project Suncatcher, a space-based data processing effort 1

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OpenAI Refocuses on ChatGPT as Space Talks Stall

The negotiations with Stoke Space ultimately ended without a deal as OpenAI shifted priorities to address immediate competitive pressures 3

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. OpenAI faces strong challenges from Google's Gemini chatbot, prompting Altman to order an urgent refocus on upgrading ChatGPT this week 1

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. The company is developing a new model called Garlic, which could launch as GPT-5.2 or GPT-5.5, to compete with Google and Anthropic . These down-to-earth market concerns may have contributed to putting Altman's space ventures on hold.

Alternative Space Ventures Emerge for AI Computing

While Stoke Space discussions ended, other space ventures offer potential pathways for deploying AI data centers. Redmond, Washington-based Starcloud is developing its own platform for orbital infrastructure and launched its first test satellite with an Nvidia data-processing chip in December 1

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. Starcloud, which like Stoke Space went through Y Combinator's accelerator program that Altman once ran, is partnering with Colorado-based Crusoe to offer limited GPU processing capacity in space by early 2027 1

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. Altman has also backed Longshot Space, a startup developing satellite deployment methods that don't rely on traditional rocket combustion technology 3

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. As AI computing demands continue accelerating, watch for renewed interest in space-based solutions from major tech players seeking to overcome Earth's infrastructure limitations.