Google, SpaceX in talks for orbital data centers

Google and SpaceX are reportedly in discussions to establish data centers in orbit, according to The Wall Street Journal. This potential collaboration aligns with SpaceX's upcoming IPO, where they aim to present orbital data centers as a cost-effective solution for AI compute needs. The talks follow a recent agreement for SpaceX to provide computing resources to xAI. Google is also exploring partnerships with other launch providers and plans to deploy prototype satellites by 2027. While Elon Musk touts the cost benefits and reduced local opposition for orbital data centers, current terrestrial options remain significantly cheaper when factoring in launch and construction expenses.