SPACEX

The future of AI might literally be above us

As countries spend millions building new data centres to power AI, Elon Musk thinks the best place for future computing may not be on Earth, but in space.

In a memo announcing SpaceX’s acquisition of xAI, Musk said “space-based AI is the only way to scale long term.”

SpaceX plans to launch satellites that would function as orbital data centres, adding large amounts of AI computing power each year.

Musk repeated this idea on Dwarkesh Podcast, predicting that within 30 to 36 months, space could become the most compelling location for AI infrastructure.

Here’s what you should know:

  • Data centres are growing fast and using huge amounts of energy.

  • Musk believes space could solve future power limits.

  • Experts question the cost and practicality of orbital data centres.

Isn’t it crowded up there already?

Host Dwarkesh Patel questioned whether the plan makes economic sense, since energy is only a small part of data centre costs, and maintenance in space would be expensive.

Musk argued the main issue is not cost, but energy availability.

He said electricity output outside China is largely flat, raising concens about where future AI systems will get enough power.

The debate comes as data centres grow rapidly. Some consume as much electricity as a city and use millions of gallons of water daily.

In the US, the number of proposed data centres has nearly quadrupled since 2010.

McKinsey estimates the world may need $6.7 trillion in data centre investment by 2030 to meet AI demand.

AI in spaaaaaace! - MV

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