Google, SpaceX Reportedly In Talks For Orbital Data Centers Ahead Of Musk’s Mammoth IPO

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Elon Muskโ€˜s rocket company, SpaceX and Alphabet Inc are reportedly negotiating a launch deal to put data centers into orbit. The speculative technology would bypass Earthโ€™s massive power grid constraints just as SpaceX gears up for what may…


Google, SpaceX Reportedly In Talks For Orbital Data Centers Ahead Of Musk’s Mammoth IPO

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

Elon Muskโ€˜s rocket company, SpaceX and Alphabet Inc are reportedly negotiating a launch deal to put data centers into orbit.

The speculative technology would bypass Earthโ€™s massive power grid constraints just as SpaceX gears up for what may become the biggest public listing in history.

Google plans to launch prototype satellites by 2027 under its Project Suncatcher initiative.

The search giant already owns a 6.1% stake in SpaceX and is reportedly working with Planet Labs PBC on the satellite builds.

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Space-based computing is quickly becoming a core part of the SpaceX pitch to investors. The company confidentially filed for a public listing this summer with a targeted valuation between $1.75 trillion and $2 trillion.

AI Consolidation In Orbit

To bolster its balance sheet ahead of the roadshow, SpaceX recently merged with Muskโ€™s xAI in a deal valuing the combined entity at $1.25 trillion. The company also took an option to acquire AI coding startup Cursor for $60 billion later this year.

The rocket giant also locked down a major agreement to supply terrestrial computing power to AI startup Anthropic using 220,000 Nvidia GPUs. Anthropic has already expressed interest in utilizing SpaceXโ€™s future orbital data centers.

A successful orbital test could fundamentally shift how tech giants scale artificial intelligence infrastructure.

Google CEO Sundar Pichai recently noted that โ€œtiny racks of machinesโ€ in satellites could become a normal way to build data centers within a decade.

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What The Traders See

The Polymarket contract on whether the SpaceX IPO hits a $2.2 trillion valuation sits at 47%. $2 trillion is at 71%.

Polymarket expects a SpaceX IPO to happen in June. June 15th is at 9%, and June 30th is at 70%.

SpaceX has an 87% chance of being the largest IPO this year, with Anthropic well behind with 9%.

With Google at the table, orbital data centers look less like vaporware and more like a legitimate, incoming infrastructure shift.

Image: Shutterstock

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