AI, breaking news! Elon Musk's mega plan revealed!

Elon Musk’s Space Data Center Plan Reveals More Details!

According to multiple foreign media reports, to facilitate the deployment of a satellite network dedicated to artificial intelligence (AI) data centers, SpaceX CEO Elon Musk intends to build a giant electromagnetic launch device on the Moon and a satellite assembly plant, using electromagnetic launch methods to send satellites into Earth’s orbit.

Meanwhile, SpaceX’s global satellite broadband project Starlink has announced significant price reductions. In response, Musk stated that the price cuts are not related to competition with Amazon but are aimed at making the service more affordable for more people.

It is reported that SpaceX may choose June this year for its initial public offering (IPO), with an estimated valuation exceeding $1.5 trillion, making it one of the largest IPOs globally.

On February 24, local time, the three major U.S. stock indices rose collectively, with the Nasdaq up over 1%, Advanced Micro Devices (AMD) nearly 9%, Intel nearly 6%, TSMC over 4%, Qualcomm over 3%, Tesla over 2%, Amazon and Microsoft over 1%, and Nvidia up 0.68%.

On the Moon Electromagnetic Launch AI Satellite

According to Xinhua News Agency citing France’s Future Science website on the 23rd, Musk is interested in building a giant electromagnetic launch device on the Moon and a satellite assembly plant, with the former launching satellites into Earth’s orbit.

SpaceX recently submitted an application to the U.S. Federal Communications Commission (FCC) to deploy a system of up to one million satellites in low Earth orbit, creating an on-orbit data center network to support high-performance computing needs such as AI. These satellites are planned to operate at altitudes of approximately 500 to 2,000 kilometers, powered by solar energy, mainly communicating with each other via lasers and connecting to the company’s Starlink satellite internet to ensure high-speed data transmission.

Analysis from Future Science suggests that Musk’s idea of “launching satellites from the Moon” has some theoretical basis. The Moon’s lower gravity, lack of atmospheric resistance, and abundant solar energy could theoretically enable much higher launch efficiency than from Earth. This would make deploying large-scale satellite networks easier and avoid the increasingly crowded near-Earth orbit space. However, turning this idea into reality faces enormous challenges.

Musk believes that solar power generation in space is far more efficient than on Earth, and the low temperatures in shadowed areas help with heat dissipation. “Deploying AI in space is the lowest-cost option,” he said. “Deploying AI data centers in space could become a reality within two to three years.”

However, OpenAI CEO Sam Altman has dismissed Musk’s idea. In an interview with The Indian Express, Altman said that while space-based AI data centers are feasible in the long term, they are unlikely within the next decade due to high launch costs and operational and maintenance difficulties.

Musk Responds to Starlink Price Cuts

Since its launch in 2020, SpaceX’s Starlink satellite internet service has rapidly surpassed traditional rocket launch business, becoming the company’s most important revenue pillar. By the end of 2025, Starlink will have 9.2 million users, with SpaceX’s total revenue for that year estimated at around $15 to $16 billion, and EBITDA profit about $8 billion. This month, Starlink announced that active users exceeded 10 million.

Some banks estimate that SpaceX’s valuation at IPO could exceed $1.5 trillion, with fundraising potentially surpassing $50 billion. This valuation would make it one of the largest IPOs globally.

SpaceX may choose June this year for its IPO. Market and investor expectations are high that Starlink will continue to generate strong cash flow in the coming years, becoming a core driver of SpaceX’s growth.

However, on February 23, The Information reported that Starlink is significantly lowering prices and offering free hardware to distribution partners. These measures were implemented before the planned IPO and the launch of Amazon’s Kuiper satellite system, aiming to lock in customers before increased competition.

In response, Musk said, “This has nothing to do with Kuiper. We just want Starlink to serve a broader user base at more affordable prices. The lower the cost, the more it benefits those with less economic means.”

The Information reports that recently, to maintain user growth, Starlink has increasingly competed directly with mainstream telecom operators, diverging from Musk’s original high-end service positioning. Starlink has sharply reduced hardware and subscription costs, which stimulates user growth but may also squeeze profit margins.

According to reports, last year, Starlink launched a $50/month low-cost plan in the U.S. Two former SpaceX employees revealed that in some scenarios, the company even gave away user terminals costing up to $600 each. Two other former employees said that in Europe, due to lower-than-expected demand, Starlink started lowering prices earlier.

This round of price cuts coincides with the launch later this year of Amazon’s Leo satellite service, which is seen as Starlink’s first significant potential competitor. Meanwhile, Starlink is investing in improving its originally rudimentary customer service system and opening its first offline stores.

Tim Farar, a space consultant at TMF Associates, said, “Although Starlink’s user numbers are growing rapidly, they are slashing prices aggressively to maintain that growth. Remote users are already covered, and now they must compete head-to-head with AT&T and Comcast, which means prices have to be pushed even lower.”

Amazon plans to promote its satellite internet service through its Prime membership system and leverage existing AWS partnerships with enterprises and governments to accelerate global licensing approvals. Amazon has not yet announced hardware and subscription prices but has historically subsidized devices like Alexa and stated that its satellite internet project aims to improve global connectivity, thereby boosting e-commerce and entertainment businesses.