Why does SoftBank doubt the viability of orbital data centers?

Masayoshi Son believes SpaceX's project will not resolve the current shortage of AI computing power, as its implementation will take years and require massive investments. The industry needs rapid solutions, not long-term initiatives.

What benefits could SpaceX gain from orbital data centers?

The project involves creating a satellite constellation that will require regular rocket launches, increasing demand for SpaceX's services. This is particularly significant given that Starlink is already a key driver of the company's business.

What alternatives to orbital data centers exist?

The market offers computing power leasing from companies like Groq or even SpaceX, which has already struck deals to provide access to its servers. However, the long-term sustainability of such models remains uncertain.

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SoftBank Skepticism: Why Does Elon Musk Need Orbital Data Centers?

June 27, 2026

Photo: TechCrunch

Quick answer

SoftBank CEO Masayoshi Son criticized SpaceX's orbital data center concept, calling it ineffective for solving current AI industry challenges.

SoftBank CEO Masayoshi Son questioned the economic feasibility of orbital data centers proposed by Elon Musk during a shareholders' meeting. According to Son, such projects will not address the urgent shortage of computing power for artificial intelligence in the coming years, and their implementation will require too much time and resources.

Experts note that SpaceX's idea could benefit the company itself: creating a satellite constellation for data centers will increase demand for rocket launches, strengthening SpaceX's market position. However, critics point to high costs and technical challenges that could make the project unprofitable in the medium term.

The discussion also touched on other initiatives for leasing computing power, such as Groq, which recently raised $650 million in investments. However, the long-term sustainability of such models remains uncertain, especially amid growing demand for AI infrastructure.

Experts emphasize that many forecasts by IT industry leaders reflect their own business interests. For example, Musk promotes an idea that benefits SpaceX, while Son, as a major investor in terrestrial data centers, is interested in alternative solutions.

Common questions

Why does SoftBank doubt the viability of orbital data centers?: Masayoshi Son believes SpaceX's project will not resolve the current shortage of AI computing power, as its implementation will take years and require massive investments. The industry needs rapid solutions, not long-term initiatives.
What benefits could SpaceX gain from orbital data centers?: The project involves creating a satellite constellation that will require regular rocket launches, increasing demand for SpaceX's services. This is particularly significant given that Starlink is already a key driver of the company's business.
What alternatives to orbital data centers exist?: The market offers computing power leasing from companies like Groq or even SpaceX, which has already struck deals to provide access to its servers. However, the long-term sustainability of such models remains uncertain.

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