Alphabet (GOOGL) Stock: SpaceX, Anthropic and Google Are All Betting on Space Data Centers

TLDR

• Google confirmed it has been in talks with SpaceX and others for future launches tied to Project Suncatcher, its orbital AI data center initiative.
• The project aims to network solar-powered satellites equipped with Google’s Tensor Processing Units into an orbital AI cloud.
• A prototype launch with partner Planet Labs is planned for around 2027.
• SpaceX’s Starship rocket is central to the economics — designed to cut launch costs by up to 90% versus the Falcon 9.
• Last week, Anthropic also agreed to use SpaceX’s Colossus 1 facility and expressed interest in space-based data center development.

Google has confirmed it is in talks with SpaceX about future launches for Project Suncatcher, its research initiative to build solar-powered orbital data centers.

The Wall Street Journal first reported the talks on Tuesday. Google confirmed discussions with SpaceX and others but did not provide details. SpaceX did not respond to requests for comment.

Project Suncatcher is Google’s push to network satellites equipped with its Tensor Processing Units into an orbital AI cloud. The company plans a prototype launch with partner Planet Labs around 2027.

Alphabet Inc., GOOGL

Alphabet stock (GOOGL) was down 0.16% on Tuesday as the news broke.

This would be the second time Musk has moved toward cooperation with an AI rival he has publicly criticized. SpaceX merged with xAI in February, putting it in direct competition with Alphabet’s AI business.

Musk originally helped launch OpenAI in 2015 partly as a counterweight to Google’s AI ambitions, following a falling out with co-founder Larry Page over AI safety.

SpaceX’s Starship Is the Key Variable

The economics of space-based data centers hinge heavily on Starship. The rocket stands over 400 feet tall and is fully reusable. SpaceX says it is designed to cut the cost of reaching low Earth orbit by up to 90% compared with the Falcon 9 — which itself already slashed launch costs by around 95% versus the Space Shuttle.

Starship is scheduled for another test flight this week. SpaceX currently accounts for more than half of all orbital launches worldwide.

Musk has said he believes space-based data centers will be cost-competitive with ground-based ones within a few years. Capital for that push is part of what’s driving SpaceX’s anticipated mid-year IPO, which could value the company at up to $2 trillion.

More AI Players Circling SpaceX

Google isn’t alone. Last week, Anthropic agreed to use the full computing capacity of SpaceX’s Colossus 1 facility in Memphis. Anthropic also expressed interest in working with SpaceX on multiple gigawatts of space-based orbital data center capacity.

SpaceX is also currently launching satellites for Amazon’s broadband constellation — a direct competitor to its own Starlink product, which has over 10 million subscribers. SpaceX has not historically used its dominance in the launch market to lock out rivals.

The pattern is consistent: SpaceX is positioning itself as launch infrastructure for the broader AI and satellite industry, regardless of competitive dynamics elsewhere.

Alphabet’s participation in talks validates the orbital data center thesis that underpins much of SpaceX’s current valuation ahead of its IPO.

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