Blue Origin and SpaceX Vie for Dominance in Space-Based AI Infrastructure

Jeff Bezos' Blue Origin has emerged as a direct competitor to Elon Musk's SpaceX in the race to deploy artificial intelligence infrastructure in orbit. The aerospace company has spent over a year developing technology to launch data centers into space, addressing the growing energy and resource constraints of terrestrial facilities.

Space-based data centers offer a compelling solution to the unsustainable demands of traditional computing hubs. Current Earth-bound facilities consume approximately 415 terawatt hours annually—1.5% of global electricity production—with some single locations using up to five million gallons of water daily for cooling systems.

SpaceX appears to be pursuing an alternative path, focusing on upgrading its Starlink satellite constellation to handle AI workloads. This strategy forms part of a broader valuation push, though Musk has publicly disputed reports suggesting an $800 billion target during recent share sale discussions.