SpaceX Seeks FCC Green Light for Solar-Powered Satellite AI Data Centers
SpaceX has asked the U.S. Federal Communications Commission (FCC) for approval to deploy a new generation of solar-powered satellites designed to function as orbital data centers supporting artificial intelligence workloads, marking a bold expansion beyond its Starlink broadband network.
According to regulatory filings, the company is seeking permission to launch a large constellation of satellites equipped with onboard computing infrastructure capable of processing AI tasks in space. The proposed system would rely primarily on continuous solar energy and operate in high-sunlight orbits, allowing the platforms to generate power without the heavy cooling and grid demands faced by Earth-based data centers.
SpaceX argues that placing AI compute infrastructure in orbit could significantly reduce energy bottlenecks that are emerging as AI models grow more complex and resource-intensive. Traditional data centers require vast electricity supplies and water-based cooling systems, while space-based platforms can use direct solar collection and radiative cooling in the vacuum of space. The company says this approach could enable scalable, lower-emission computing capacity over time.
The filing outlines plans for satellites positioned across multiple orbital shells, potentially ranging from low to higher Earth orbits, to maintain steady sunlight exposure and network connectivity. While the application references a very large maximum number of satellites, industry analysts note that such figures often represent an upper limit rather than a guaranteed deployment plan.
The initiative would likely depend on SpaceX’s next-generation Starship launch vehicle to carry heavier and more numerous payloads at lower cost per launch. Reusable launch capability is seen as essential to making orbital computing infrastructure economically viable.
If approved, the project could reshape how and where AI processing is performed, opening a new frontier for space-based digital infrastructure. The FCC will review the proposal as part of its licensing and spectrum coordination process, which includes technical evaluation and regulatory scrutiny before any launches can proceed.
Starlink’s Privacy Policy Shift Stirs Debate Over AI Data Use
Starlink, the satellite internet service operated by Elon Musk’s SpaceX, has updated its global privacy policy to allow the use of certain customer data to train artificial intelligence systems, prompting fresh debate over data rights and transparency in the AI era.
The revised policy expands how user information may be processed, stating that collected data can be used to develop and improve machine learning and AI models. The change applies to information gathered through Starlink’s services and platforms, and is structured as an opt-out framework, meaning data may be included for AI training unless customers actively disable the setting where available.
Starlink provides satellite-based broadband connectivity to millions of users worldwide, particularly in remote and underserved regions. As part of delivering its services, the company collects a range of operational and account-related data, such as device identifiers, usage metrics, location signals, and billing details. The updated language indicates that such data may now contribute to AI system development aimed at improving network performance, automation, and future digital products.
The policy shift comes at a time when AI infrastructure and model training have become central priorities across the technology sector. Companies are seeking larger and more diverse datasets to refine AI systems, but the practice has also triggered regulatory scrutiny and consumer concern over consent and scope of use.
Privacy advocates argue that policy language around AI training must clearly define what categories of data are used and how they are anonymized or protected. They warn that broad wording can leave room for interpretations that users may not fully understand when they accept service terms.
Industry analysts say the move aligns Starlink with a broader trend among tech and connectivity providers that are revising privacy frameworks to account for AI development. Regulators in several jurisdictions are increasingly examining how user data is repurposed for machine learning, suggesting that such policy changes may draw closer oversight going forward.
US judge signals Musk’s xAI lawsuit may be dismissed
A U.S. federal judge has signaled that Elon Musk’s artificial intelligence company, xAI, may face dismissal of its lawsuit accusing Sam Altman’s OpenAI of stealing trade secrets, casting doubt on the strength of the claims in a closely watched tech industry dispute.
During preliminary proceedings, the judge indicated that xAI’s complaint may not meet the legal threshold required to move forward. The court questioned whether the allegations sufficiently demonstrate that OpenAI improperly obtained or used protected trade secret information. The judge noted that claims centered largely on employee movement between companies and competitive overlap, which by themselves may not constitute trade secret theft under U.S. law.
xAI’s lawsuit alleges that OpenAI benefited from confidential knowledge connected to AI model development and related systems after hiring individuals previously associated with Musk’s ventures. The complaint argues that this resulted in unfair competitive advantage. OpenAI has denied wrongdoing and has argued that the lawsuit lacks specific evidence and relies on broad assertions rather than clearly defined proprietary materials.
The judge suggested that the current filing may be too vague in identifying what exact trade secrets were allegedly taken and how they were used. In trade secret litigation, courts typically require detailed descriptions of the protected information and concrete examples of misappropriation. Without that specificity, such cases often struggle to proceed past early motions.
The court has not yet issued a final ruling, but indicated it is considering a motion to dismiss. xAI may be given an opportunity to amend and refile the complaint with more detailed factual support if the case is thrown out at this stage.
The legal clash is one of several disputes involving major AI players as competition intensifies across the sector. With billions of dollars at stake in AI development and commercialization, lawsuits over talent, intellectual property, and competitive practices are becoming increasingly common in the rapidly evolving industry.
Videogame stocks slide on Google’s AI model that turns prompts into playable worlds
Shares of major video game companies fell sharply following Google’s unveiling of a new artificial intelligence system capable of generating fully playable virtual worlds from simple prompts, signaling investor concerns about potential disruption to traditional game development. The AI, internally referred to as Project Genie, can transform text or image descriptions into interactive environments, simulating physics, gameplay elements, and dynamic interactions that previously required months of work from large development teams.
Unlike conventional game engines, which rely on designers, programmers, and artists to craft detailed levels and content, Project Genie allows users to create explorative worlds almost instantly. This ability to rapidly generate playable environments could lower barriers to game development and experimentation, potentially reshaping the economics of the industry. For investors, the announcement raised questions about the impact on established studios, content pipelines, and proprietary engines that have long been the backbone of the gaming market.
The market reaction saw significant declines in companies heavily invested in content creation and development tools, as traders weighed the possibility that AI-driven tools might reduce demand for traditional production processes. Analysts noted that while the technology is still in an early phase and not yet capable of producing fully commercial-quality games, its long-term implications could be significant. Smaller studios and independent creators could leverage AI-generated worlds to prototype or release content faster, potentially shifting competitive dynamics and innovation strategies across the industry.
Critics caution that current AI models remain limited, often requiring human refinement to reach the standards of polished titles. Still, the announcement highlights growing concern about AI’s role in creative fields and its potential to transform how digital media is produced, consumed, and monetized. The drop in stock prices underscores the tension between technological innovation and traditional business models, emphasizing that even emerging tools can influence investor sentiment and market valuations in the fast-evolving gaming sector.
Overall, Google’s AI demonstrates both the promise of rapid world-building and the market anxiety associated with disruptive technologies entering established creative industries.
Nvidia’s $100 Billion OpenAI Investment Plan Hits a Roadblock
Nvidia’s ambitious plan to invest up to $100 billion in OpenAI has reportedly stalled, raising questions about the pace and scale of funding for one of the world’s leading artificial intelligence developers. The proposed investment, first discussed last year, was intended to strengthen the partnership between Nvidia and OpenAI, giving the AI company greater access to Nvidia’s advanced chips while supporting its rapid growth and large-scale AI projects.
According to reports, internal discussions within Nvidia have slowed progress, with company leaders reconsidering the scope and timing of such a massive commitment. While the $100 billion figure made headlines, company officials have indicated that the original plan was non-binding and largely aspirational, rather than a finalized contractual agreement. Concerns have reportedly been raised about OpenAI’s business structure, capital requirements, and the competitive pressures it faces from rivals like Google, Microsoft, and other emerging AI firms.
Despite these uncertainties, Nvidia has emphasized that it remains committed to its long-term collaboration with OpenAI. Both companies have a history of working closely together, particularly in AI model training and infrastructure development, and Nvidia continues to supply OpenAI with specialized graphics processing units and other hardware critical for large-scale AI workloads.
Current discussions are said to focus on a smaller, more manageable equity investment, potentially in the tens of billions of dollars, rather than the initially publicized $100 billion. Other technology companies are also reportedly exploring funding options for OpenAI as it seeks to secure significant capital to expand its AI research, scale its compute resources, and pursue commercial applications.
The delay highlights the challenges of executing extremely large-scale investments in the fast-moving AI sector, where both technological demands and market competition are intense. Observers note that while the original $100 billion plan may not materialize as first envisioned, a revised agreement could still provide substantial funding to support OpenAI’s ongoing growth and maintain Nvidia’s strategic role in the AI ecosystem.
