Sam Altman said Elon Musk’s idea of ​​placing a data center in space was “ridiculous.”

SpaceX CEO Elon Musk and OpenAI CEO Sam Altman are known to frequently disagree with each other.

The latest point of contention between the two is over a data center in space. Musk sees it as a major priority, while Altman believes it remains unrealistic at this point.

“I honestly think that given the current context, the idea of ​​putting data centers in space is ridiculous,” Altman said in a live interview with local media in New Delhi, drawing laughter from the audience.

Altman said that orbital data centers “may be feasible someday,” but the cost of launching rockets and repairing a computer chip in space remains a major hurdle.

“We’re not there yet. There will be a suitable time. Space is great for many things, but orbital data centers won’t be a significant factor on a large scale this decade ,” he added.  OpenAI CEO Sam Altman and SpaceX CEO Elon Musk are known to frequently disagree. (Photo: Business Insider)

Musk almost certainly disagrees.

While many tech and AI giants are spending billions of dollars building data centers on Earth, Musk continues to focus his vision on the stars. An orbital data center is his latest ambition, first mentioned at xAI’s company-wide meeting in December.

In February, SpaceX stated its goal was to launch “a constellation of one million satellites that will function as orbital data centers.” The company also began recruiting engineers to realize this plan.

In an internal meeting with xAI employees this month, Musk said SpaceX’s acquisition of xAI would help deploy orbital data centers faster.

Despite Altman’s skepticism, other tech leaders are also racing to put data centers in space. Google’s Project Suncatcher, launched in November 2025, has a similar goal. Google CEO Sundar Pichai told Fox News Sunday that the company could begin sending solar-powered data centers into space as early as 2027.

Technology and AI companies rely on data centers to power products like large-scale language models and chatbots. However, these centers can deplete water resources, strain power grids, increase pollution, and negatively impact quality of life.

A Business Insider investigation published last year revealed that by the end of 2024, more than 1,200 data centers had been approved for construction across the United States, nearly four times the number in 2010.

Currently, many data center complex projects in Texas, Oklahoma, and other states are facing increasingly strong opposition from local communities.