Report: Google and SpaceX in talks to put data centers into orbit

Google and SpaceX are reportedly in discussions to launch data centers into Earth's orbit. This potential collaboration, cited by The Wall Street Journal, comes as SpaceX prepares for a significant IPO later this year. The company is positioning orbital data centers as a future cost-effective solution for AI computation. Last week, SpaceX also finalized a deal with Anthropic to utilize computing resources from xAI's facility in Memphis, Tennessee. This agreement includes the possibility of future cooperation on orbital data centers, following SpaceX's acquisition of xAI in February. Google is also exploring partnerships with other rocket-launch providers. Additionally, the company plans to deploy prototype satellites by 2027 as part of its "Project Suncatcher" initiative, which was announced towards the end of last year. Elon Musk has championed the concept of orbital data centers, asserting their operational cost-effectiveness. Proponents also highlight their immunity from local opposition often faced by ground-based facilities in the U.S. However, TechCrunch has noted that current terrestrial data centers remain more economical once satellite construction and launch expenses are considered. Regulatory filings indicate that Google invested $900 million in SpaceX in 2015. TechCrunch has reached out to both companies for further comment regarding these developments.