Elon Musk’s SpaceX has filed an application with the US Federal Communications Commission to launch up to one million satellites into low-Earth orbit to power artificial intelligence (AI), dramatically expanding its existing Starlink network of nearly 10,000 satellites. The plan envisions “orbital data center” as a more energy- and cost-efficient alternative to traditional terrestrial data centers, which require massive electricity and cooling resources.
The BBC reported that the satellites would operate at altitudes between 500 and 2,000 km (310–1,242 miles) and could deliver AI computing capacity to billions of users globally. Elon Musk described the effort as a step toward a “Kardashev II-level civilisation” capable of harnessing the Sun’s full power.
Musk posted on X, “The satellites will actually be so far apart that it will be hard to see from one to another. Space is so vast as to be beyond comprehension.”
Experts warn, however, that space-based AI infrastructure is costly and complex, requiring protection, power, and cooling for hardware, while increasing the risk of collisions and generating more space debris. Astronomers have also raised concerns that Starlink satellites interfere with telescope observations.
In a related move, SpaceX announced a merger with Musk’s AI company xAI, forming a vertically-integrated innovation platform combining rockets, AI, space-based internet, and real-time information services as reported by yahoo finance.
Musk stated on SpaceX website “My estimate is that within 2 to 3 years, the lowest cost way to generate AI compute will be in space. This cost-efficiency alone will enable innovative companies to forge ahead in training their AI models and processing data at unprecedented speeds and scales, accelerating breakthroughs in our understanding of physics and invention of technologies to benefit humanity.”
Tesla engineers are expected to collaborate on some projects, following Tesla’s US$ 2 billion investment in xAI last week. The merger and satellite plans come as SpaceX prepares for an initial public offering (IPO) that could raise up to US$ 50 billion, potentially valuing the company at US$ 1.5 trillion, though it is unclear how integrating xAI will affect those projections.