> My estimate is that within 2 to 3 years, the lowest cost way to generate AI compute will be in space.
This is so obviously false. For one thing, in what fantasy world would the ongoing operational and maintenance needs be 0?
No operational needs is obviously ... simplified. You still need to manage downlink capacity, station keeping, collision avoidance, etc. But for a large constellation the per-satellite cost of that would be pretty small.
The thing being called obvious here is that the maintenance you have to do on earth is vastly cheaper than the overspeccing you need to do in space (otherwise we would overspec on earth). That's before even considering the harsh radiation environment and the incredible cost to put even a single pound into low earth orbit.
If the cost per pound, power, regulatory burden, networking, and radiation shielding can be gamed out, as well as the thousand other technically difficult and probably expensive problems that can crop up, they have to sum to less than the effective cost of running that same datacenter here on earth. It's interesting that it doesn't play into Jevon's paradox the way it might otherwise - there's a reduction in power consumption planetside, if compute gets moved to space, but no equivalent expansion since the resource isn't transferable.
I think some sort of space junk recycling would be necessary, especially at the terawatt scale being proposed - at some point vaporizing a bunch of arbitrary high temperature chemistry in the upper atmosphere isn't likely to be conducive to human well-being. Copper and aluminum and gold and so on are also probably worth recovering over allowing to be vaporized. With that much infrastructure in space, you start looking at recycling, manufacturing, collection in order to do cost reductions, so maybe part of the intent is to push into off-planet manufacturing and resource logistics?
The whole thing's fascinating - if it works, that's a lot of compute. If it doesn't work, that's a lot of very expensive compute and shooting stars.
In this case, it's all about Starship ramping up to such a scale that the cost per pound to orbit drops sufficiently for everything else to make sense - from the people who think the numbers can work, that means somewhere between $20 and $80 per pound, currently at $1300-1400 per pound with Falcon 9. Starship at scale would have to enable at least 2 full orders of magnitude decrease in price to make space compute viable.
If Starship realistically gets into the $90/lb or lower range, space compute makes sense; things like shielding and the rest become pragmatic engineering problems that can be solved. If the cost goes above $100 or so, it doesn't matter how the rest of the considerations play out, you're launching at a loss. That still might warrant government, military, and research applications for space based datacenters, especially in developing the practical engineering, but Starship needs to work, and there needs to be a ton of them for the datacenter-in-space idea to work out.
Just because an idea has some factors in its favor (Space-based datacenter: 100% uptime solar, no permitting problems [2]) doesn't mean it isn't ridiculous on its face. We're in an AI bubble, with silly money flowing like crazy and looking for something, anything to invest it. That, and circular investments to keep the bubble going. Unfortunately this gives validation to stupid ideas, it's one of the hallmarks of bubbles. We've seen this before.
The only things that space-based anything have advantages on are long-distance communication and observation, neither of which datacenters benefit from.
The simple fact is that anything that can be done in a space-based datacenter can be done cheaper on Earth.
[1] https://en.wikipedia.org/wiki/A_Modest_Proposal for the obtuse
[2] until people start having qualms about the atmospheric impact of all those extra launches and orbital debris