Elon Musk is getting serious about orbital data centers

February 5, 2026

TL;DR

SpaceX filed plans with the FCC for a million-satellite data center network.
SpaceX and xAI have officially merged, combining Musk's space and AI ventures.
The FCC accepted the filing for orbital AI data clusters and is seeking public comment.
Elon Musk stated that solar panels produce five times more power in space, making it cheaper for data centers.
Musk predicts 2028 as a tipping point for orbital data centers, with more AI launched annually in space than cumulatively on Earth within five years.
SpaceX benefits from launching infrastructure into orbit, especially with its new AI company.
The SpaceX-xAI conglomerate is reportedly heading for an IPO in a few months.

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