Susana Schwartz
Musk, Bezos and others in orbital 'Gold Rush'
Our featured story today is about the SpaceX-xAI mega-merger, in which Elon Musk is consolidating the power of SpaceX and xAI in order to create a $1.25 trillion company focused on AI and orbital data centers. According to recent FCC filings, SpaceX will launch a constellation of up to 1 million solar-powered satellites to form a “unified orbital data center,” which will provide space-based compute at what Musk contends is the “lowest-cost option” within a two- to three year time span. SpaceX is not alone in this “orbital gold rush“, as other tech giants are pursuing off-planet compute solutions, such as: Google’s Project Suncatcher; Microsoft Azure Space; Blue Origin’s Orbital Data Center initiative; Lonestar Data Holdings, which recently embarked on a lunar data center mission. Ironically, Amazon’s CEO Matt Garman yesterday said orbital data centers are “pretty far” from being a reality, despite Amazon’s founder Jeff Bezos being onboard with the idea. Of course, getting a payload of satellites, servers, and other equipment into space will be a monumental task, but science fiction may become fact if this year’s prototypes and tests pan out. For more on this, read the RCR opinion piece, “The SpaceX – xAI mega-merger is an opening gambit to a bigger play,” below.
Susana Schwartz
Technology Editor
RCRTech
AI Infrastructure Top Stories
SpaceX-xAI mega-merger: Elon Musk says electricity demand for AI can’t be met with terrestrial DCs, so he is merging SpaceX – xAI in order to fund a “space cloud” of 1 million solar-powered satellites, making SpaceX a full-blown AI DC company.
AI reshapes subsea cable infra: New trans-Atlantic/Pacific routes face regulatory, supply chain and logistical constraints. Google, Meta, Exa Infrastructure and Southern Cross Cable Networks explored what’s possible at PTC in Hawaii.
Dell-AMD webinar: In “Telco collides with AI, the future is ultra-mega, OK,” Dell and AMD will discuss how to achieve elite-level performance for AI systems, while safeguarding existing network investments. Register before February 19.
AI Today: What You Need to Know
Oracle AI push could mean job losses: Oracle may slash up to 30,000 jobs to bankroll AI infrastructure. According to TD Cowen, the US tech firm aims to generate $8 billion to $10 billion in cash flow through reductions.
Industrial AI for digital twins: Dassault Systémes and Nvidia have partnered to build industrial architecture for mission-critical AI across industries, combining the former’s Dassault Systèmes’ Virtual Twin technologies with NVIDIA AI infrastructure.
TSMC semiconductor talent: Taiwan is defending TSMC’s U.S. expansion as “brain drain” fears mount. The company is now worth US$1.7 trillion, surpassing Broadcom and Meta, but concerns are mounting about available talent.
827-acre Google DC in Oklahoma: White Rose Partners’ 827-acre Google data center been approved by the Sand Spring’s city council, which will rezone despite community pushback and pending legal challenges.
American Tower Corp. withdraws DC plans: Indianapolis’ Pike County residents are celebrating after American Tower Corp. withdrew its rezoning petition in Pike Township, but the company may reapply once the city sets DC regulations.
