As most engineers realize right away, it is not going to be profitable to operate a regular datacenter in space, per the article (and I agree), so something else is going on here. Almost all the discussion is about feasibility, which is not by itself going to explain the situation.
It is clearly somewhat feasible to build Starlink level infrastructure and operate it profitably. I would posit that the narrative is a funding vehicle for a more conservative, incremental objective.
The very fact that the infrastructure is in space places the datacenter on the legal and geopolitical high ground. It's hard to raid servers if they are in orbit. It's hard to disable, audit, or arm-wrestle into submission. It doesn't have to have the scale we've come to expect in 2026 to be useful. And it's for inference, not training, of course. Useful levels of inference is computationally cheap. There are implications with the financial system as well.
In combination with PLTR technology, what I see is another intelligent and strategic move by Musk to enable and be part of hegemony. He is a central player not making decisions in isolation. They are playing a game with different rules, and therefore different unit economics.