OpenAI CEO Sam Altman has dismissed Elon Musk’s vision of placing data centers in space as “ridiculous” in the current technological and economic landscape. The comment came during a live interview with local media in New Delhi on Friday, drawing laughter from the audience. Altman acknowledged that while orbital data centers might make sense in the distant future, they are not feasible at scale today. He pointed to major hurdles such as the high cost of launching hardware into orbit and the immense difficulty of repairing or maintaining computer systems in space. “We are not there yet,” he said. “There will come a time. Space is great for a lot of things. Orbital data centers are not something that's going to matter at scale this decade.” The remarks highlight the growing rift between Altman and Musk, whose companies—OpenAI and SpaceX, respectively—have long been at odds over AI development, governance, and the future of technology. While Altman remains skeptical, Musk has made space-based infrastructure a central focus of his ambitions. In December, he announced plans during an all-hands meeting for xAI to develop a constellation of a million satellites functioning as orbital data centers. SpaceX has since begun hiring engineers to advance the project. Musk has also emphasized that the acquisition of xAI by SpaceX will accelerate progress on this initiative, enabling tighter integration between AI development and space-based infrastructure. Despite Altman’s skepticism, other tech giants are exploring similar ideas. Google’s Project Suncatcher, unveiled in November 2025, aims to deploy solar-powered data centers in space, with CEO Sundar Pichai stating the company could begin operations as early as 2027. The project is part of a broader industry trend to find sustainable, high-capacity computing solutions beyond Earth. The push for more data centers—on land and potentially in space—comes amid rising concerns about the environmental and social impact of traditional facilities. Data centers consume vast amounts of electricity and water, strain local power grids, and contribute to pollution. A Business Insider investigation from last year found that over 1,200 new data centers were approved for construction in the U.S. by the end of 2024—nearly four times the number approved in 2010. As a result, proposed data center campuses in Texas, Oklahoma, and other regions are facing increasing resistance from local communities worried about resource depletion and environmental degradation. With terrestrial expansion hitting roadblocks, some companies are turning to space as a potential alternative, even if it remains a long-term, high-risk proposition.