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FCC Opens Public Review of SpaceX Plan for Orbital AI Data Centers

SpaceX’s xAI consolidation sets the stage for regulators and rivals to probe a proposed laser‑linked orbital compute network.

Overview

  • The FCC accepted SpaceX’s non‑geostationary “Orbital Data Center” application for filing and opened a public comment window through March 6, a procedural step that does not grant approval.
  • SpaceX proposes up to roughly one million data‑center‑style satellites using optical inter‑satellite links to process and route data in orbit, interfacing with existing Starlink systems before downlink to Earth.
  • SpaceX has absorbed xAI, bringing Grok and AI development under its roof as Starlink remains the key moneymaker, with Reuters reporting about $8 billion in profit on $15–16 billion in 2025 revenue.
  • Researchers and industry rivals are pressing questions on feasibility, orbital debris and competition, issues the FCC’s comment process will surface for regulators to evaluate.
  • Following reports that SpaceX was considering a Starlink phone, Elon Musk said, “We are not developing a phone,” even as the company pursues direct‑to‑device connectivity with partners like T‑Mobile.