Sam Altman Questions Orbital Data Centers, Favors Underwater Infrastructure

OpenAI CEO Sam Altman has questioned the practicality of orbital data centres, even as reports swirl around potential projects tied to Elon Musk’s SpaceX and Google’s prototype initiative.

According to a report by Benzinga, speaking on the technology podcast TBPN, Altman said, “I wish Elon luck,” but suggested underwater infrastructure may ultimately prove easier to build and cool than computing systems deployed in space.

Altman further noted that ocean robotics researchers are not yet focused on deploying computing systems underwater, but also argued the concept could be more feasible than constricting orbital facilities.

“It feels easier than constructing space data centers,” he said, adding that while space offers freedom from land and regulatory constraints, energy generation and infrastructure remain formidable challenges.

Orbital ambitions of Elon Musk

The comments made by Sam Altman come as Elon Musk’s SpaceX pursues long-term ambitions which include orbital computing projects, with speculation tied to its upcoming IPO.

Google has also explored prototypes under Project Suncatcher, which could involve launching small computing satellites by 2027.

AI infrastructure demand keeps rising

The skepticism of Sam Altman underscores broader industry questions about where future AI infrastructure will be built.

With demand for computing power surging, companies are experimenting with alternatives to traditional data centers.

Amazon, Microsoft, and Google continue expanding land-based facilities, while Musk and others explore orbital systems.

The AI boom is straining power grids, chip supply chains, and cooling infrastructure, fueling interest in unconventional models.

Altman’s remarks highlight the tension between visionary projects and practical engineering hurdles.

Analysts note that investment ties between AI and aerospace are deepening.

Deloitte projects U.S. defense spending on AI to grow 3.5 times by 2029, with contracts awarded to leading AI firms.

Altman himself acknowledged the convergence: “Everyone has diversified into every company at this point, basically,” he said.

Elon Musk and Sundar Pichai are reportedly in talks for data centers

Recently, it was reported that Google is in talks with Elon Musk-owned SpaceX for a rocket-launch deal to put orbital data centres in space, reports the Wall Street Journal citing people familiar with the discussions.

Data centres in space have been emerging as a potential solution to traditional data centres that require more energy.

The search engine giant is also in talks with other rocket launch companies, a source told the publication.

The deal, if formalized, will put the two companies “in partnership as they gear up to compete on orbital data centers, an unproven technology that SpaceX Chief Executive Elon Musk has said is the next frontier for his rocket company,” the report said.

While Google and SpaceX are betting on space data centres, ChatGPT-maker OpenAI CEO Sam Altman has a different view.

Both Google CEO Sundar Pichai and SpaceX CEO Elon Musk have previously talked about plans to build space data centers.

In a Fox News interview last year, Pichai said: “We’ll send tiny racks of machines and have them in satellites, test them out, and then start scaling from there”.

“There’s no doubt to me that a decade or so away, we’ll be viewing it as a more normal way to build data centers,” he further added.

Elon Musk has previously said that space will be the cheapest place for AI data centres in the next three years.