{"id":3490359,"date":"2026-06-27T20:42:36","date_gmt":"2026-06-27T20:42:36","guid":{"rendered":"https:\/\/techingeek.com\/index.php\/2026\/06\/27\/softbanks-ceo-isnt-the-sole-individual-questioning-the-excitement-surrounding-elon-musks-orbital-data-center\/"},"modified":"2026-06-27T20:42:36","modified_gmt":"2026-06-27T20:42:36","slug":"softbanks-ceo-isnt-the-sole-individual-questioning-the-excitement-surrounding-elon-musks-orbital-data-center","status":"publish","type":"post","link":"https:\/\/techingeek.com\/index.php\/2026\/06\/27\/softbanks-ceo-isnt-the-sole-individual-questioning-the-excitement-surrounding-elon-musks-orbital-data-center\/","title":{"rendered":"SoftBank’s CEO isn’t the sole individual questioning the excitement surrounding Elon Musk’s orbital data center."},"content":{"rendered":"
<\/div>\n
\n

Not everyone is on board with Elon Musk\u2019s concept of space-based data centers.\u00a0<\/p>\n

Masayoshi Son, founder and CEO of Softbank, expressed at a recent shareholder gathering that constructing data centers in orbit won’t significantly lower expenses and will require too much time, since \u201cin the race for AI, the upcoming years will be far more crucial than events that may emerge a decade from now.\u201d<\/p>\n

In the latest episode of TechCrunch\u2019s Equity podcast, Kirsten Korosec, Sean O\u2019Kane, and I talked about Son\u2019s comments within a wider conversation that covered OpenAI\u2019s intentions for custom chips, Groq\u2019s new $650 million investment round, and more.<\/p>\n

Kirsten pointed out the \u201cgreat irony\u201d in Son being the skeptic, considering SoftBank\u2019s \u201clong history of daring investments.\u201d<\/p>\n

Sean added that when Musk discusses \u201ccreating a constellation of satellites \u2014 which need to be replaced every few years as well \u2014 to form an \u2018orbital data center,\u2019\u201d he\u2019s simply \u201cassuring that much greater business\u201d for SpaceX.<\/p>\n

Continue reading for a sneak peek of our dialogue, refined for brevity and clarity.<\/p>\n

Sean O\u2019Kane:<\/strong> Listen, neo-clouds are the new oil, and everyone eager to profit is making the shift to a neo-cloud. I\u2019m excited to announce that TechCrunch is now a neo-cloud; give us all your money.<\/p>\n

I mean, this is the strategy. It appears there are numerous players constrained by compute limitations, so whoever can lease out that compute is capitalizing on it, whether that\u2019s Groq, a company somewhat diminished by Nvidia, or Allbirds, which went into bankruptcy and emerged rebranded as a new neo-cloud vendor instead of just selling shoes \u2014 Tim Fernholz conducted an interview with the new CEO of that initiative that I highly recommend.<\/p>\n

Or consider SpaceX, which proposed: I’m going to establish an AI platform that targets a market as broad as U.S. GDP, but first, we\u2019ll just lease out our compute. We\u2019ve seen this trend with SpaceX; although their deals with Google or Anthropic are more significant, they just inked another agreement, [their] inaugural post-IPO deal, to lease compute to a smaller entity. They are persistently moving in that direction.<\/p>\n

I can foresee this becoming a near-term business for Groq. The real question with all these options is their long-term viability.<\/p>\n

Anthony Ha:<\/strong> If we\u2019re discussing SpaceX and their AI and data center ventures, we must also touch on Masayoshi Son\u2019s recent statements, where he essentially questioned the purpose of space-based data centers, which is a query we\u2019ve raised on this program.\u00a0<\/p>\n

It reflects, again, the industry\u2019s acute compute constraints \u2014 they need to establish as many data centers as possible, [and] numerous factors make this challenging on Earth, so perhaps space could be the solution. However, I believe Son raises some legitimate concerns: even if everything we\u2019re discussing works \u2014 and the expenses are going to be extremely significant to implement it \u2014 this isn\u2019t materializing for years and years, so it\u2019s not a fix for any pressing issues regarding current data center requirements.<\/p>\n

Kirsten Korosec:<\/strong> I\u2019d like to emphasize that SoftBank has a longstanding tradition of making bold bets. It\u2019s noteworthy when Son asks the question many have pondered.\u00a0<\/p>\n

There are plenty of VCs and founders who have been captivated by the idea of orbital data centers, and it feels like suddenly everyone is on board. Just a couple of years prior, mentioning this would have been dismissed somewhat. Thus, I think it\u2019s significant that a high-profile individual is raising this concern. Yet, it seems quite ironic that he<\/em> is the one questioning it, considering his pitch deck features substantial investments in several ambitious concepts.<\/p>\n

Sean:<\/strong> WeWork! Mark my words, we\u2019re going to raise this point repeatedly over the next few years. The concept of placing these systems in space poses an intriguing engineering and economic challenge.\u00a0<\/p>\n

Anthony, what you pointed out is certainly somewhat accurate. Elon Musk is someone who despises bureaucracy, and as there are no NIMBYs in space, he\u2019s bound to pursue that path.\u00a0<\/p>\n

To me, it ultimately boils down to: The business as it currently stands for SpaceX, particularly its launch segment, is overwhelmingly dependent on Starlink. The reason they command 80 or 90% of the global launch market isn\u2019t solely due to their superior performance compared to nearly every other launch provider, but also because of Starlink, which significantly boosts that number. Without Starlink, they\u2019d likely be around \u2014 I don\u2019t know, maybe 20% or 30% of the launch market, or 40%, but certainly not 90%.\u00a0<\/p>\n

When you discuss creating a constellation of satellites \u2014 which also need to be upgraded every few years \u2014 to constitute an \u201corbital data center,\u201d you\u2019re simply promising much more work for your launch business. I can\u2019t help but emphasize that point.<\/p>\n

Kirsten:<\/strong> I\u2019d like to quickly mention that [SpaceX\u2019s] other significant business is renting out their compute, by the way. So, circling back to the chip discussion, we\u2019ve come full circle.<\/p>\n

Anthony:<\/strong> One of the recurring themes in this episode could be the idea of advocating your own interests. This isn\u2019t a novel occurrence. Executives at tech firms, or any other organizations, project their visions for the future, ultimately favoring their business interests.\u00a0<\/p>\n

However, this is something important to keep in mind as we engage in discussions about major AI companies, especially during this moment of profound uncertainty. We\u2019re all contemplating: What will the job market look like in the future? What impacts will this have on the environment? What skills will I need to acquire?\u00a0<\/p>\n

All these AI CEOs or investors have perspectives on those issues. It\u2019s not that they\u2019re incorrect or intentionally misleading; however, there\u2019s always an asterisk beside these forecasts. In Musk\u2019s situation, he\u2019s discussing something that would greatly benefit SpaceX. In SoftBank\u2019s case, they hold extensive investments in terrestrial data center initiatives. Sam Altman is another notable figure who has raised his eyebrows at the notion of orbital data centers \u2014 and, again, he and Elon Musk undoubtedly share a long and complicated history.<\/p>\n

All this points to the fact that there are no unbiased, objective observers in this discussion. Everyone involved has their own baggage and significant financial stakes.<\/p>\n<\/div>\n

When you purchase through links in our articles, we may earn a small commission. This doesn\u2019t affect our editorial independence.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

<\/div>\n
\n

Not everyone is on board with Elon Musk\u2019s concept of space-based data centers.\u00a0<\/p>\n

Masayoshi Son, founder and CEO of Softbank, expressed at a recent shareholder gathering that constructing data centers in orbit won’t significantly lower expenses and will require too much time, since \u201cin the race for AI, the upcoming years will be far more crucial than events that may emerge a decade from now.\u201d<\/p>\n

In the latest episode of TechCrunch\u2019s Equity podcast, Kirsten Korosec, Sean O\u2019Kane, and I talked about Son\u2019s comments within a wider conversation that covered OpenAI\u2019s intentions for custom chips, Groq\u2019s new $650 million investment round, and more.<\/p>\n

Kirsten pointed out the \u201cgreat irony\u201d in Son being the skeptic, considering SoftBank\u2019s \u201clong history of daring investments.\u201d<\/p>\n

Sean added that when Musk discusses \u201ccreating a constellation of satellites \u2014 which need to be replaced every few years as well \u2014 to form an \u2018orbital data center,\u2019\u201d he\u2019s simply \u201cassuring that much greater business\u201d for SpaceX.<\/p>\n

Continue reading for a sneak peek of our dialogue, refined for brevity and clarity.<\/p>\n

Sean O\u2019Kane:<\/strong> Listen, neo-clouds are the new oil, and everyone eager to profit is making the shift to a neo-cloud. I\u2019m excited to announce that TechCrunch is now a neo-cloud; give us all your money.<\/p>\n

I mean, this is the strategy. It appears there are numerous players constrained by compute limitations, so whoever can lease out that compute is capitalizing on it, whether that\u2019s Groq, a company somewhat diminished by Nvidia, or Allbirds, which went into bankruptcy and emerged rebranded as a new neo-cloud vendor instead of just selling shoes \u2014 Tim Fernholz conducted an interview with the new CEO of that initiative that I highly recommend.<\/p>\n

Or consider SpaceX, which proposed: I’m going to establish an AI platform that targets a market as broad as U.S. GDP, but first, we\u2019ll just lease out our compute. We\u2019ve seen this trend with SpaceX; although their deals with Google or Anthropic are more significant, they just inked another agreement, [their] inaugural post-IPO deal, to lease compute to a smaller entity. They are persistently moving in that direction.<\/p>\n

I can foresee this becoming a near-term business for Groq. The real question with all these options is their long-term viability.<\/p>\n

Anthony Ha:<\/strong> If we\u2019re discussing SpaceX and their AI and data center ventures, we must also touch on Masayoshi Son\u2019s recent statements, where he essentially questioned the purpose of space-based data centers, which is a query we\u2019ve raised on this program.\u00a0<\/p>\n

It reflects, again, the industry\u2019s acute compute constraints \u2014 they need to establish as many data centers as possible, [and] numerous factors make this challenging on Earth, so perhaps space could be the solution. However, I believe Son raises some legitimate concerns: even if everything we\u2019re discussing works \u2014 and the expenses are going to be extremely significant to implement it \u2014 this isn\u2019t materializing for years and years, so it\u2019s not a fix for any pressing issues regarding current data center requirements.<\/p>\n

Kirsten Korosec:<\/strong> I\u2019d like to emphasize that SoftBank has a longstanding tradition of making bold bets. It\u2019s noteworthy when Son asks the question many have pondered.\u00a0<\/p>\n

There are plenty of VCs and founders who have been captivated by the idea of orbital data centers, and it feels like suddenly everyone is on board. Just a couple of years prior, mentioning this would have been dismissed somewhat. Thus, I think it\u2019s significant that a high-profile individual is raising this concern. Yet, it seems quite ironic that he<\/em> is the one questioning it, considering his pitch deck features substantial investments in several ambitious concepts.<\/p>\n

Sean:<\/strong> WeWork! Mark my words, we\u2019re going to raise this point repeatedly over the next few years. The concept of placing these systems in space poses an intriguing engineering and economic challenge.\u00a0<\/p>\n

Anthony, what you pointed out is certainly somewhat accurate. Elon Musk is someone who despises bureaucracy, and as there are no NIMBYs in space, he\u2019s bound to pursue that path.\u00a0<\/p>\n

To me, it ultimately boils down to: The business as it currently stands for SpaceX, particularly its launch segment, is overwhelmingly dependent on Starlink. The reason they command 80 or 90% of the global launch market isn\u2019t solely due to their superior performance compared to nearly every other launch provider, but also because of Starlink, which significantly boosts that number. Without Starlink, they\u2019d likely be around \u2014 I don\u2019t know, maybe 20% or 30% of the launch market, or 40%, but certainly not 90%.\u00a0<\/p>\n

When you discuss creating a constellation of satellites \u2014 which also need to be upgraded every few years \u2014 to constitute an \u201corbital data center,\u201d you\u2019re simply promising much more work for your launch business. I can\u2019t help but emphasize that point.<\/p>\n

Kirsten:<\/strong> I\u2019d like to quickly mention that [SpaceX\u2019s] other significant business is renting out their compute, by the way. So, circling back to the chip discussion, we\u2019ve come full circle.<\/p>\n

Anthony:<\/strong> One of the recurring themes in this episode could be the idea of advocating your own interests. This isn\u2019t a novel occurrence. Executives at tech firms, or any other organizations, project their visions for the future, ultimately favoring their business interests.\u00a0<\/p>\n

However, this is something important to keep in mind as we engage in discussions about major AI companies, especially during this moment of profound uncertainty. We\u2019re all contemplating: What will the job market look like in the future? What impacts will this have on the environment? What skills will I need to acquire?\u00a0<\/p>\n

All these AI CEOs or investors have perspectives on those issues. It\u2019s not that they\u2019re incorrect or intentionally misleading; however, there\u2019s always an asterisk beside these forecasts. In Musk\u2019s situation, he\u2019s discussing something that would greatly benefit SpaceX. In SoftBank\u2019s case, they hold extensive investments in terrestrial data center initiatives. Sam Altman is another notable figure who has raised his eyebrows at the notion of orbital data centers \u2014 and, again, he and Elon Musk undoubtedly share a long and complicated history.<\/p>\n

All this points to the fact that there are no unbiased, objective observers in this discussion. Everyone involved has their own baggage and significant financial stakes.<\/p>\n<\/div>\n

When you purchase through links in our articles, we may earn a small commission. This doesn\u2019t affect our editorial independence.<\/em><\/p>\n","protected":false},"author":2,"featured_media":3490360,"comment_status":"open","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3490359","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/techingeek.com\/index.php\/wp-json\/wp\/v2\/posts\/3490359"}],"collection":[{"href":"https:\/\/techingeek.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/techingeek.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/techingeek.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/techingeek.com\/index.php\/wp-json\/wp\/v2\/comments?post=3490359"}],"version-history":[{"count":0,"href":"https:\/\/techingeek.com\/index.php\/wp-json\/wp\/v2\/posts\/3490359\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/techingeek.com\/index.php\/wp-json\/wp\/v2\/media\/3490360"}],"wp:attachment":[{"href":"https:\/\/techingeek.com\/index.php\/wp-json\/wp\/v2\/media?parent=3490359"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/techingeek.com\/index.php\/wp-json\/wp\/v2\/categories?post=3490359"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/techingeek.com\/index.php\/wp-json\/wp\/v2\/tags?post=3490359"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}