Accelerate! SpaceX plans to launch a "space data center" satellite next year, equipped with Nvidia chips

SpaceX is extending the battlefield for AI infrastructure into space. SpaceX announced plans to launch AI satellites equipped with Nvidia chips into orbit as early as next year, at least one year ahead of the timeline previously disclosed in its prospectus, marking an accelerated shift from the concept of "space data centers" toward practical reality.

According to MarketWatch on August 24, Musk stated on Monday that SpaceX aims to launch the first batch of Starmind AI1 satellites in the fourth quarter of 2027 and "significantly expand" the scale in the following year. This new timeline is notably ahead of SpaceX's previously disclosed 2028 deployment plans. Meanwhile, Musk revealed to investors earlier this month that SpaceX would obtain a "significant proportion" of Nvidia GPU supplies in 2027.

At the market level, this news has not boosted the share prices of either company. Nvidia's stock price fell by 2.9% on Monday and SpaceX's stock also slipped by 1.4%. Investors are focusing more on Nvidia's second-quarter earnings report to be released after the close on Wednesday, which is widely regarded by the market as a key event that could lead to major volatility.

Exclusive Partnership: SpaceX Shifts Fully to Nvidia Chips

The partnership between SpaceX and Nvidia was officially deepened last month. At that time, Musk announced that SpaceX would exclusively use Nvidia chips going forward, and both parties subsequently disclosed this exclusive collaboration.

According to Nvidia, SpaceX also plans to use Nvidia’s Vera Rubin platform to expand the AI infrastructure that supports its Grok chatbot and related services. Describing this "space-optimized" system co-designed with Nvidia, Musk said, "Our design is simpler, lower-cost, denser, and lighter than traditional racks."

This system will be produced in Bastrop, Texas, which will also be the site of SpaceX’s AI satellite manufacturing base. Analysts point out that the deep strategic alignment between SpaceX and Nvidia is forging an increasingly tight bond between the two companies’ futures.

Notably, Nvidia will release its second-quarter earnings after the close this Wednesday, an event the market considers one of the most important catalysts of the period. Cantor Fitzgerald analyst C.J. Muse recently told clients that now is the time to "go all in" on Nvidia stock.

An Ambitious Roadmap for Compute Power Expansion

According to the report, the business logic behind space data centers lies in bypassing regulatory barriers and community resistance, but the cost disadvantage is also significant. Research firm Wood Mackenzie estimates that a 1 GW orbital data center would cost around $170 billion, over three times the cost of a traditional data center.

However, supporters argue that as rocket launch costs continue to fall—driven by SpaceX’s Starship program—the economics of orbital data centers will gradually improve. Critics, meanwhile, note that for at least the next few years, ground-based data centers will still have a clear advantage in operating costs.

Morgan Stanley analyst Adam Jonas expects SpaceX’s AI-related capital expenditures to reach around $53 billion in 2026, climbing to $130 billion in 2027, equating to about $40 per watt of capital expenditure.

In addition, SpaceX’s compute power expansion plan is not limited to space. Musk stated that the company plans to accumulate more than 2 GW of AI computing power by the end of 2026, and push that number to "closer to 10 GW rather than 5 GW" by the end of 2027.

Currently, SpaceX has data centers in Tennessee and Mississippi, and is reportedly planning to build at least one more in Texas. On August 4, Musk stated:

"The entire industry is surging toward greater demand for computing power. We are rapidly expanding compute capacity to meet the internal needs brought by Grok expansion, as well as external demand from leading companies such as Google and Anthropic."

Beyond terrestrial infrastructure, SpaceX is also working with Tesla to advance a chip manufacturing project in Texas. The two companies plan to invest at least $16.8 billion in the initial phase of the Terafab project in Grimes County, Texas.