Tesla Inc. (NASDAQ:TSLA) and SpaceX CEO Elon Musk reaffirmed orbital datacenter goals on Thursday as NVIDIA Corp (NASDAQ:NVDA) CEO Jensen Huang outlined the growing need for energy to operate AI compute.

Space Is The Only Way

User @TheChiefNerd posted a clip on X that showed Huang sharing that the amount of energy needed for AI compute exceeded current capacity. “The amount of energy that we need for computing is probably 1,000x more than we currently have,” Huang said.

The NVIDIA CEO can also be seen saying that renewable, sustainable sources were crucial to increase energy output for datacenters.

Responding to the user, Musk shared his take on Huang’s comments about rising energy needs. “Space is the only way,” he said, reaffirming his orbital datacenter goals.

Elon Musk’s Orbital Datacenter Ambitions

Space-based AI compute has been a long-standing goal for Musk, with the SpaceX CEO outlining this vision on multiple occasions in the past. Musk has also received backing from Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) as the tech giant is reportedly in talks with SpaceX over developing space-based computing capabilities.

Datacenters in orbit are crucial for Musk’s SpaceX compensation package, alongside Mars Colonization efforts. However, SpaceX, in filings ahead of its upcoming IPO, has shared that the goals rely on “unproven technology” and that achieving them may not be commercially viable.

SpaceX’s Management-Favorable Structure

As SpaceX gears up for its upcoming IPO, pension leaders like New York Comptrollers, as well as the California Public Employees’ Retirement System (CalPERS) CEO, have expressed concerns about Musk’s control over the decision to appoint/remove the company’s CEO, as well as the dual-class share structure that SpaceX has adopted for its IPO.

The officials called the IPO “the most management-favorable governance structure,” as well as raised questions about Musk’s leadership of SpaceX, Tesla, xAI, The Boring Co. and Neuralink.

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