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Reading: OpenAI CEO Sam Altman calls Elon Musk’s house knowledge facilities ‘ridiculous’
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Business

OpenAI CEO Sam Altman calls Elon Musk’s house knowledge facilities ‘ridiculous’

Editor
Last updated: February 23, 2026 10:01 pm
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Published: February 23, 2026
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OpenAI CEO Sam Altman calls Elon Musk’s house knowledge facilities ‘ridiculous’


FOX Enterprise correspondent Madison Alworth studies on Lonestar planning A.I. knowledge facilities in house, with satellites launching this fall and objectives for lunar facilities by 2030 on Varney & Co.

OpenAI CEO Sam Altman dismissed the concept of knowledge facilities in house being a viable choice within the subsequent few years as SpaceX CEO Elon Musk pursues their deployment.

“I truthfully suppose the concept with the present panorama of placing knowledge facilities in house is ridiculous,” Altman stated in an interview with Indian Categorical. “It should make sense sometime.”

Altman stated that space-based synthetic intelligence (AI) knowledge middle initiatives must take care of excessive launch prices in addition to operational and upkeep challenges, like the way to repair a damaged or broken part whereas the information middle is in orbit.

“We’re not there but. There’ll come a time. Orbital knowledge facilities will not be one thing that is going to matter at scale this decade,” Altman stated within the interview.

DATA CENTERS IN OUTER SPACE EMERGE AS SOLUTION TO AI’S MASSIVE ENERGY REQUIREMENTS

OpenAI CEO Sam Altman stated that whereas space-based knowledge facilities could also be viable sooner or later, they are not more likely to be deployed at scale this decade. (Ken Cedeno/Reuters / Reuters)

SpaceX’s Musk stated earlier this month at an occasion asserting SpaceX’s acquisition of xAI that the power calls for of AI would require shifting knowledge facilities to house due to the pressure it places on the atmosphere.

“In the long run, space-based AI is clearly the one solution to scale,” Musk stated. “My estimate is that inside 2 to three years, the bottom price solution to generate AI compute might be in house.”

SpaceX’s merger with xAI, the AI firm Musk based that went on to amass the X social media platform, goals to create a greater than $1 trillion firm forward of a deliberate preliminary public providing that can allow them elevate capital and pace up plans to deploy knowledge facilities in house.

SPACEX ACQUIRES XAI IN RECORD-SETTING DEAL VALUED AT OVER $1T

Elon Musk in a thoughtful repose with his finger on his chin

SpaceX CEO Elon Musk sees space-based knowledge facilities as an answer to environmental challenges they pose on Earth. (Marc Piasecki/Getty Pictures / Getty Pictures)

SpaceX just lately filed a doc with the Federal Communications Fee requesting to launch as much as 1 million satellites that may perform as knowledge facilities in Earth’s orbit.

Musk stated in a memo outlining his plans that SpaceX goals to place 1,000,000 tons of satellites into orbit per 12 months with 100 kilowatts of compute energy per ton, including 100 gigawatts of AI computing capability per 12 months.

DATA CENTER BOOM POWERING AI REVOLUTION MAY DRAIN US GRIDS – AND WALLETS

SpaceX launches Starship on May 27, 2025

SpaceX is planning a constellation of satellites that may function space-based knowledge facilities. (Joe Skipper/Reuters)

Different tech firms pursuing space-based knowledge facilities embody Google, as CEO Sundar Pichai advised “Fox Information Sunday” that the corporate may put solar-powered knowledge facilities in house as quickly as subsequent 12 months as a part of what’s often known as Mission Suncatcher.

Amazon Internet Companies CEO Matt Garman stated on the Cisco AI Summit earlier this month, “there will not be sufficient rockets to launch 1,000,000 satellites but, so we’re, like, fairly removed from that.” 

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“If you concentrate on the price of getting a payload in house in the present day, it is huge,” Garman added. “It’s simply not economical.”

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