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SpaceX Weighs IPO as Tech Giants Race to Put AI Data Centers in Orbit

Sources describe a capital push to fund orbital compute despite unresolved engineering hurdles.

Overview

  • The Wall Street Journal reports that Elon Musk is preparing a SpaceX IPO as soon as July to help finance space‑based AI data centers, with bank selection expected soon.
  • Google’s Project Suncatcher is pursuing a 2027 test launch and has reported five‑year low‑Earth‑orbit radiation tolerance for its Trillium TPUs.
  • Other leaders are exploring the concept, with OpenAI’s Sam Altman evaluating rocket partnerships and Blue Origin’s Jeff Bezos predicting orbital data centers within one to two decades.
  • Key challenges cited by engineers include heat rejection in vacuum requiring large radiators, radiation exposure, high launch costs versus an often‑cited ~$200/kg threshold, and short hardware replacement cycles.
  • Backers say orbit offers near‑continuous solar power and relief from land and water constraints on Earth, though some claims, including a reported SpaceX breakthrough, remain undisclosed and unverified.