Elon Musk Shows Detailed Design of AI Data Center Satellite

(Bloomberg) — Elon Musk unveiled a more detailed look at an initial version of an AI data center satellite SpaceX plans to build, providing fresh insight into the ambitious project driving the companyโ€™s highly anticipated initial public offering. Most Read from Bloomberg During a 30-minute video shared on his social media website X, SpaceXโ€™s chief…


Elon Musk Shows Detailed Design of AI Data Center Satellite

(Bloomberg) — Elon Musk unveiled a more detailed look at an initial version of an AI data center satellite SpaceX plans to build, providing fresh insight into the ambitious project driving the companyโ€™s highly anticipated initial public offering.

Most Read from Bloomberg

During a 30-minute video shared on his social media website X, SpaceXโ€™s chief executive officer laid out his plans for the future, including the continued development of its Starship rocket and the joint Terafab facility with Tesla that aims to manufacture computer chips in the US.

Musk also revealed a rendering with specifications of what SpaceX is calling its AI1 satellite, the first version of a spacecraft that the company plans to build as part of a roughly 1 million satellite network that will do complex computing for artificial intelligence in Earth orbit.

Musk noted that the early version of the satellite, sporting massive solar panels spanning 230 feet (70 meters), would support an average compute payload of 120 kilowatts and 150 kilowatts at its peak. SpaceX will start by using Nvidia Corp. chips in the AI satellites, Chief Financial Officer Bret Johnsen said in a separate interview.

Musk cited SpaceXโ€™s experience with building the companyโ€™s Starlink system and said creating the data center satellites would be simpler than building those powering the satellite-internet service.

โ€œAn AI satellite is essentially a lot of solar cells, a radiator, and you still need some laser links, but you donโ€™t have all of the super complex antennas that you have on a Starlink satellite,โ€ Musk said in the video. โ€œGiven the two, the easier one to design for is the AI satellite.โ€

Musk said the data center satellites would need to be built bigger than the Starlink satellites.

Musk also showed off a massive, planned expansion of SpaceXโ€™s facility in Bastrop, Texas, where the company currently produces user terminals for its Starlink system.

Dubbed Gigasat in a slide that Musk presented, the facility will span more than 11 million square feet and more than 1,000 acres of land. Gigasat will be comprised of multiple warehouses that will be used to manufacture the massive solar panels needed for the data center satellites.

While the Gigasat expansion is large, it still pales in comparison to the planned Terafab. Musk also said in the video the proposed Terafab facility would be 100 million square feet, roughly 10 times larger than Teslaโ€™s gigafactory in Austin. A Wyoming-based LLC that is adjacent to Musk has been buying up land in Grimes County, Texas, for the expected Terafab.

The push to build AI data center satellites is fueling SpaceXโ€™s plans to go public in what is shaping up to be the largest IPO in history.

The initiative is also part of Muskโ€™s broader ambitions in the AI race.

SpaceXโ€™s newly acquired AI division has fallen behind competitors in developing chatbots, but Musk has instead chosen to focus on the infrastructure, both the chips and data centers that run them. SpaceX has recently inked deals with Anthropic PBC and Alphabet Inc.โ€™s Google to sell them access to its data centers and chips โ€” both of which Muskโ€™s AI division is not fully utilizing.

Johnsen said SpaceX has not given up on its own internal services, such as its chatbot Grok, and is just looking to monetize renting extra compute. SpaceX through xAI also struck a deal with AI startup Cursor for a potential acquisition, with both firms collaborating on coding and compute.

โ€œElon felt the constraint was going to be compute and power,โ€ Johnsen said in his interview with Musk ally Gavin Baker, referring to the limitations in AI. โ€œWe are already seeing that.โ€

–With assistance from Dana Hull and Sana Pashankar.

(Updates throughout with details from SpaceX CFO.)

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