Jeff Bezos’s Blue Origin and Elon Musk’s SpaceX are accelerating competing efforts to deploy AI data centers in orbit, according to Wall Street Journal sources. Blue Origin has spent more than a year building and testing the core technologies required for space-based compute infrastructure, including thermal management, power systems, and orbital hardware capable of supporting sustained AI workloads.
SpaceX, is promoting a plan to integrate AI processing units directly onto its next-generation Starlink satellites. These upgraded satellites would carry dedicated computing payloads, enabling distributed orbital processing across the Starlink network. The proposal is being highlighted in SpaceX’s ongoing share sale, which places the company’s valuation near $800 billion, signaling strong investor interest in blending satellite connectivity with AI compute capabilities.