Jeff Bezos and Elon Musk set sights on space-based AI innovation

 

Jeff Bezos and Elon Musk’s space rivalry dates back over a decade, and now, both are reportedly setting their sights on a new frontier.

According to the Wall Street Journal, both tech billionaires are now exploring ways to establish data centres in space to support Earth’s growing artificial intelligence (AI) demands.

The development comes at a crucial time when demand for orbital data centres has surged, as Earth-based data facilities face growing shortages of power, water, and grid capacity.

But the big question is whether investors are prepared for this next-generation leap in space-based AI innovation.

CEO and chief investment officer of Tuttle Capital, Matthew Tuttle, has some suggestions to offer.

In a new blog post, Tuttle explained that the greatest constraint on AI growth is not chips but power.

“Data centres and AI are projected to drive a big step-up in electricity demand this decade,” he said, noting that orbital AI data centres can harness continuous solar energy in space.

However, Tuttle also warned that scaling orbital computing and transferring results back to Earth will be a massive engineering challenge.

That said, he added that the “investing edge” lies in spotting where early capital expenditure goes, especially in space infrastructure.