Here's Why SpaceX's AI Infrastructure in Space "Moonshot" Won't Uproot Neocloud Companies
SpaceX took a big step toward putting data center satellites in Earth orbit, but that doesn't mean you should sell neocloud stocks.
Overview
AI data centers in space just got one step closer to reality. Last week, SpaceX (NASDAQ: SPCX) launched a prototype satellite for Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Project Suncatcher that contains four of its Tensor Processing Units (TPUs). Alphabet is testing how those TPUs fare in space, in pursuit of its longer-term objective to operate entire constellations of data center satellites in low earth orbit, where they can run on nearly continuously available solar power.
Yet even if data centers in space become a reality, this development is unlikely to eliminate the market for the neocloud companies currently scrambling to build as many data centers as they can on Earth.
Image source: Getty Images.
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Originally published at www.fool.com.