Report: Google and SpaceX are discussing putting data into orbit

Google and SpaceX are discussing launching orbital data centers in space, reports The Wall Street Journal, citing sources familiar with the matter.

The potential deal comes as SpaceX prepares $1.75 trillion IPO later this year, selling investors on the idea that data centers in space will be the cheapest place to put AI compute within the next few years. It also follows Anthropic Action and SpaceX last week using computing resources from the xAI data center in Memphis, Tennessee, with the possibility of future orbital collaboration. (SpaceX acquired xAI in February.)

Google is also said to be in talks with other rocket companies. The company plans to launch satellites by 2027 as part of a project called Project Suncatcher, which was announced late last year.

Elon Musk is created hype for orbital data centers, saying they are cheaper to operate. Supporters also show that they have no problem with the return to the country that attracts US builders. However, if TechCrunch reported recentlytoday’s data centers on Earth are much cheaper than those in orbit once the costs of building satellites and launchers are established.

Google invested $900 million in SpaceX in 2015, according to regulatory documents.

TechCrunch has reached out to Google and SpaceX for comment.