Elon Musk and Jeff Bezos are boldly going where no tech CEO has gone before. They’re trying to place artificial intelligence (AI) data centers into outer space.
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Musk, who founded Tesla (TSLA), and Bezos, who founded Amazon (AMZN), are reported to be racing one another to be the first to place an AI data center into Earth’s orbit. As demand for AI computing skyrockets, the tech billionaires want to shift the data center boom from here on Earth and into space, which has more abundant power, according to a report first published in The Wall Street Journal.
Musk (SpaceX) and Bezos (Blue Origin) each have commercial space companies that they run. Now, each tech visionary is directing their companies to focus resources on developing AI data centers in space. Bezos has reportedly had a team dedicated to the project for over a year, while Musk’s SpaceX plans to integrate AI computing payloads into an upgraded version of its Starlink satellite constellation.
Insatiable Energy Demands
The move to place data centers into space is being driven largely by the insatiable energy demands of AI models and applications. Musk and Bezos have each concluded that space offers 24/7 solar energy and avoids the cooling and land-use issues plaguing data centers on Earth.
However, as one might expect, the move to place data centers into space is extremely difficult and faces immense technical hurdles such as heat dissipation in a vacuum, protecting electronics from radiation, and costs likely to run into the hundreds of billions of dollars.
Some analysts say that the commitment from Musk and Bezos could push capital toward companies capable of providing the launch, components, and infrastructure needed for interstellar AI data centers.
Is TSLA Stock a Buy?
The stock of Tesla has a consensus Hold rating among 34 Wall Street analysts. That rating is based on 12 Buy, 12 Hold, and 10 Sell recommendations issued in the last three months. The average TSLA price target of $383.54 implies 13.92% downside from current levels.
