Altman Dismisses Musk's Space Data Center Vision as "Absurd" and Unscalable

OpenAI CEO Sam Altman dismissed the concept of space-based data centers as "absurd" on February 22, 2026, directly challenging Elon Musk’s strategy to deploy orbital AI infrastructure. Altman cited high launch costs and the difficulty of in-orbit chip repairs, predicting the technology will not be scalable for at least a decade. The remarks target Musk’s plan to launch a one-million-satellite constellation via SpaceX and xAI, aiming to reduce compute costs by 100 times using Starship rockets. While Musk touts benefits like natural cooling and continuous solar power, competitors like Google and Microsoft are also advancing orbital compute projects to mitigate Earth-based resource constraints. The dispute underscores the infrastructure crisis facing the AI sector, as terrestrial data center approvals in the U.S. quadrupled to 1,200 in 2024, sparking environmental protests over water and power consumption.