SoftBank CEO Questions Elon Musk's Orbital Data Center Hype
SoftBank founder Masayoshi Son criticizes Elon Musk's orbital data center plans, arguing they are too costly and slow to address immediate AI needs.
Masayoshi Son, founder and CEO of SoftBank, has cast doubt on Elon Musk's vision for orbital data centers. At a recent shareholder meeting, Son argued that building data centers in space won't significantly cut costs and will take too long when "in the battle for AI, the next few years will be far more important than what might happen a decade or so from now."
On a recent episode of TechCrunch's Equity podcast, journalists Kirsten Korosec, Sean O'Kane, and Anthony Ha discussed Son's remarks. Korosec noted it's "very ironic" that Son plays the skeptic given SoftBank's "long history of wild bets." O'Kane pointed out that when Musk talks about "making a constellation of satellites — satellites that need to be replaced every few years as well — to make up an 'orbital data center,'" he's just "guaranteeing that much more business" for SpaceX.
The discussion also touched on the broader trend of companies like Groq and Allbirds pivoting to "neo-clouds" to lease out compute. O'Kane noted that SpaceX already rents out its compute, recently signing its first post-IPO deal with a smaller player. Ha added that Son's criticism is fair because orbital data centers, even if feasible, are years away and won't solve immediate data center needs.
Korosec emphasized it's important that a high-profile figure like Son asks these questions, despite the irony given SoftBank's own bold bets. O'Kane suggested that Musk, who hates red tape, sees space as attractive, but the real motive is to drive more business for SpaceX's launch operations. Ha concluded that all predictors — whether Musk, Son, or Sam Altman — are forecasting futures that benefit their own businesses, and there are no impartial observers.
