Sam Altman says Elon Musk's idea of putting data centers in space is 'ridiculous'
Business Insider
February 21, 2026
AI-Generated Deep Dive Summary
Sam Altman, CEO of OpenAI, has called Elon Musk's plan to place data centers in space "ridiculous" during an event in New Delhi. While Musk envisions launching a constellation of satellites serving as orbital data centers, Altman argues that current technology makes this impractical due to high launch costs and the challenges of repairing hardware in space. He suggests such initiatives won't scale significantly within the next decade.
Musk's ambitious project, revealed during an xAI meeting last December, aims to deploy a million satellites for this purpose. SpaceX has already begun hiring engineers to make this vision a reality, with plans to integrate AI developments from its acquisition of xAI. Despite Musk's enthusiasm, Altman remains skeptical, emphasizing that the technology and infrastructure needed are far from being feasible.
Other tech giants like Google are also exploring space-based data centers, with Project Suncatcher aiming to launch solar-powered units as early as 2027. However, these efforts come amid growing concerns about the environmental and societal impacts of Earth-based data centers, which consume significant resources and contribute to pollution. Local communities in regions like Texas and Oklahoma are increasingly opposing large-scale data center projects.
The debate over space-based data centers highlights broader tensions between innovation and practicality in the tech industry. While Musk's vision pushes boundaries, critics argue that addressing immediate challenges posed by Earth-based infrastructure should take priority. This competition underscores the high stakes involved in shaping the future of data storage and processing, with implications for business, environment, and society.
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Originally published on Business Insider on 2/21/2026