OpenAI (PC:OPAIQ) CEO Sam Altman has reportedly explored a move into the space industry, looking at a potential deal with rocket company Stoke Space. The plan could give him a controlling stake through multi-billion-dollar investments, positioning Altman to challenge Elon Musk’s SpaceX (PC:SPXEX) in the private space race.
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For context, Stoke Space is a space launch company founded by former employees of Amazon’s (AMZN) Jeff Bezos-backed Blue Origin. Stoke Space is working on developing a fully reusable rocket, a milestone that SpaceX is also aiming to achieve.
OpenAI’s Space Ambitions
According to reports, Altman approached Stoke Space during the summer, with discussions gaining momentum in the fall. One proposal involved OpenAI making a series of equity investments to eventually secure a controlling stake, totaling billions of dollars over time. Nonetheless, sources reveal that these talks are no longer active.
Interestingly, Altman has previously discussed the idea of starting a rocket company and even building data centers in space. He has long been interested in this concept, arguing that the huge demand for computing power to run AI systems could have serious environmental impacts on Earth.
Tech leaders like Bezos, Musk, and Google’s (GOOGL) Sundar Pichai have praised the idea of building AI computing clusters in space.
What Altman’s Rocket Move Could Mean for OpenAI
A potential partnership with Stoke Space would have put Altman in more direct competition with Musk, given SpaceX’s dominant role in rocket launches. Other launch companies, including Blue Origin, Rocket Lab (RKLB), and Stoke, are also trying to compete with SpaceX’s market-leading position.
Working with Stoke would have given Altman access to a rocket called Nova that the company is developing. Building a new rocket comes with major technical and regulatory challenges and can take a decade, making it difficult to start a company from scratch.
However, this deal could have placed OpenAI directly into the space sector, potentially giving Altman a foothold in both AI and space technology and creating new opportunities for innovation and revenue.
Which Space Stock Is a Better Buy, According to Analysts?
Space stocks offer investors huge opportunities, but they also carry significant risks. The industry is expanding rapidly, driven by the development of satellites, reusable rockets, and government contracts. Many companies are still young, so delays, technical setbacks, and regulatory changes can impact stock prices.
While most players remain private, investors can use TipRanks’ Stocks Comparison tool to analyze and compare listed space stocks. Click the image below to learn more.
