SoftBank’s CEO Questions the Viability of Elon Musk’s Orbital Data Center Ambitions
Not everyone supports Elon Musk’s concept of orbital data centers, with Masayoshi Son, founder and CEO of SoftBank, expressing skepticism during a recent shareholder meeting. Son argued that establishing data centers in space would not significantly reduce costs and would require too much time, especially given the imminent necessity for advancements in artificial intelligence (AI).
On the recent episode of TechCrunch’s Equity podcast, hosts discussed Son’s assertions alongside topics such as OpenAI’s new custom chips and significant funding rounds in the chip market. Kirsten Korosec pointed out the irony of Son, known for his bold investments in innovative technologies, questioning the viability of Musk’s space data center proposition. Meanwhile, Sean O’Kane noted that Musk’s plan for a constellation of satellites not only aims to create a data center in orbit but guarantees additional business for SpaceX.
As the team explored the concept further, O’Kane emphasized the challenge of compute shortages faced by various companies and likened the situation to the oil industry, suggesting that the race for cloud computing is intensifying. He pointed out that businesses currently starved for computing power are eager to lease whatever they can, whether it’s from emerging startups or established entities like SpaceX.
The conversation also highlighted the broader landscape of AI and data center developments. Son’s questions spiral back to significant industry trends where many venture capitalists and founders are enveloped in the allure of space-based data centers, pushing the narrative forward despite previous hesitations in the tech community. This skepticism from someone with a history of embracing bold ideas adds depth to the ongoing discussions about the future of data centers, both terrestrial and extraterrestrial.
For more context on Musk’s vision and Son’s critiques, check out TechCrunch’s coverage on Elon Musk’s orbital data center concept and SoftBank’s stance on data center investments.
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