Elon Musk thinks the future of artificial intelligence isn't on Earth, and he's pretty pleased that he happens to own a rocket company.
Why Space Matters More Than You Think
At the U.S.-Saudi Investment Forum on Wednesday, Musk laid out his vision for AI infrastructure. "You must have solar-powered AI satellites in deep space" to use even a fraction of the sun's energy to make meaningful progress as a civilization in space, he said.
The Tesla CEO referenced the Kardashev scale, a method for measuring a civilization's technological advancement based on energy consumption. "Once you think in terms of the Kardashev scale 2 civilization…Space is overwhelmingly what matters," Musk explained, emphasizing the importance of capturing the sun's energy directly.
His logic is straightforward: "If you want to have something that is, say, a million times more energy than Earth could possibly produce, you must go into space." And at that point, he noted, it's "handy" to have a space company like SpaceX.
The Economics of Space Computing
Musk wasn't just philosophizing about distant futures. He made a specific prediction: "Cost effectiveness of AI in space will be overwhelmingly better than AI on the ground." Within the next four to five years, he said, the cheapest way to handle AI compute will be through "solar-powered AI satellites" in orbit.
Nvidia Corp. (NVDA) CEO Jensen Huang, who joined Musk at the event, provided some context on the current challenges. Each rack of supercomputers currently being built weighs over 2 tons, he shared, with "1.95 of it is probably for cooling."
That's where space becomes attractive. Musk agreed with Huang, noting that space would be very "compelling" for cooling purposes. He also warned that AI's power requirements could reach "two-thirds" of the U.S.'s total energy consumption. But in space? "You actually don't need batteries cause it's always sunny in space."
Bezos and Pichai Are Thinking the Same Thing
Musk isn't alone in seeing orbital data centers as the future. Blue Origin CEO Jeff Bezos has previously promoted the concept of Gigawatt-scale data centers in space, arguing they could be more cost-effective than ground-based alternatives.
Bezos is also reportedly backing a new startup called Project Prometheus, which focuses on AI applications in automotive, aerospace and scientific research sectors.
Meanwhile, Alphabet Inc. (GOOGL) (GOOG) CEO Sundar Pichai has outlined Project Suncatcher, which aims to launch a low Earth orbit data center powered directly by the sun. Musk praised the initiative.
Mars, Starship, and a Possible SpaceX IPO
Musk's space ambitions extend well beyond data centers. He's previously outlined plans for colonizing Mars, and SpaceX recently shared an expedited timeline for the Starship rocket's Lunar and Mars missions. The Starship can carry up to 100 people on board, according to Musk.
He also dropped a hint about SpaceX's corporate future. "I want to try to figure out some way for Tesla shareholders to participate in SpaceX," he said, adding that he wanted his supporters to be able to own SpaceX stock. That suggests a public offering might eventually be on the table.