Back to News Hub
🟢TechCrunch AI
June 27, 2026
Tech

SoftBank's CEO isn't the only one with questions about Elon Musk's orbital data center hype

Overview

Not everyone is buying Elon Musk's vision for orbital data centers. Listen on Apple Podcasts Listen on Spotify Not everyone is buying Elon Musk's vision for orbital data centers . Masayoshi Son, the founder and CEO of Softbank, argued at a recent shareholder meeting that building data centers in space won't do much to 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.

Key Takeaways

  • " On the latest episode of TechCrunch's Equity podcast , Kirsten Korosec, Sean O'Kane, and I discussed Son's remarks as part of a broader discussion that included OpenAI's plans for custom chips , chipmaker Groq's new $650 million funding , and much more.

    Kirsten noted that it's "very ironic" that Son is playing the skeptic here, given SoftBank's "long history of wild bets.

  • I'm proud to announce that TechCrunch is now a neo-cloud, give us all your money.
  • They're continuing down that road.

    You know, I can see this being a business for Groq in the near term.

  • And it speaks to, again, this sense in the industry of being really, really compute constrained - they need to build as many data centers as possible, [and] there's all kinds of reasons why that is proving to be challenging here on Earth, so maybe space is the answer.
  • So I do think it's an important part of the process that someone who has a pretty high profile is asking that question.

Stats & Key Facts

  • #" On the latest episode of TechCrunch's Equity podcast , Kirsten Korosec, Sean O'Kane, and I discussed Son's remarks as part of a broader discussion that included OpenAI's plans for custom chips , chipmaker Groq's new $650 million funding , and much more.

" On the latest episode of TechCrunch's Equity podcast , Kirsten Korosec, Sean O'Kane, and I discussed Son's remarks as part of a broader discussion that included OpenAI's plans for custom chips , chipmaker Groq's new $650 million funding , and much more. Kirsten noted that it's "very ironic" that Son is playing the skeptic here, given SoftBank's "long history of wild bets. " Sean, meanwhile, said 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.

Keep reading for a preview of our conversation, edited for length and clarity. Sean O'Kane: Listen, neo-clouds are the new oil, and everybody who wants to make money is pivoting to a neo-cloud. I'm proud to announce that TechCrunch is now a neo-cloud, give us all your money.

I mean, this is the thing you do. Or whether you're SpaceX, where your idea was: I'm gonna build an AI platform that's gonna have an addressable market the size of U. GDP, but before we get there, we'll just rent out our compute.

For more details please read the original article at TechCrunch AI.

Continue Learning

Originally published by TechCrunch AI
Read the original

Comments

Sign in to join the conversation