OpenAI vs SpaceX: Sam Altman looks for Space Data Center Access Point
In 2025, OpenAI CEO Sam Altman explored a major strategic move to enter the aerospace launch industry by acquiring a controlling stake or forming a partnership with Stoke Space, a reusable rocket startup founded by former Blue Origin engineers. These talks, ongoing from summer and peaking in fall 2025, centered on multi-billion-dollar equity investments that could have enabled OpenAI to compete directly with Elon Musk's SpaceX, which dominates the reusable rocket launch market.
Stoke Space is developing the Nova fully reusable rocket designed for high-frequency, round-trip orbital access, with a focus on sustainable and cost-effective launch technology. In 2025, Stoke Space successfully raised nearly $1 billion in funding rounds—led by prominent venture and defense investors—underscoring strong market confidence. The company also secured a National Security Space Launch contract worth up to $5.6 billion, validating its strategic position in the sector.
Altman's interest is driven by his long-standing vision to deploy power-hungry AI data centers in orbit, addressing the growing energy demands of AI computation by leveraging abundant solar power and vacuum cooling in space. Such orbital data centers could revolutionize AI infrastructure, benefitting from near-unlimited renewable energy and lower cooling costs, while potentially transforming the global data processing landscape.
OpenAI’s space ambitions also reflect the intensifying rivalry between Altman and Musk. Once co-founders of OpenAI, the two have diverged since 2018, with Musk founding xAI and continuing to lead SpaceX. Altman's Stoke Space talks represent a bold push to challenge Musk's dominance beyond AI software into aerospace hardware.
Despite the high potential, negotiations stalled and have not resulted in a finalized deal, indicating the challenges of entering a capital-intensive, technologically complex industry with established competitors like SpaceX. However, Altman’s move signals an emerging trend of cross-sector competition in AI, aerospace, and space infrastructure, where the convergence of AI computing and rocket technology could reshape competitive dynamics.
The exploration of this deal exemplifies broader changes in aerospace, where startups are advancing reusable launch vehicles, and major tech players are eyeing space-based AI computing. Emerging competitors to SpaceX include Rocket Lab, Blue Origin, and Chinese companies developing reusable rockets, intensifying market pressure.
The meeting point of AI and space technology is further exemplified by initiatives in orbital data centers, where companies like Axiom Space, Starcloud, and Google are developing GPU-powered computing platforms in low Earth orbit to optimize latency and energy efficiency for AI workloads.
In summary, Altman’s Stoke Space deal was a strategic bid to integrate AI's exponential demand for compute with space technology’s evolving launch capabilities, representing a significant development in the convergence of two of the most dynamic technology sectors today. While the deal was not consummated, it highlights long-term opportunities and challenges at the intersection of AI infrastructure expansion, reusable aerospace innovation, and the competitive battle with Musk's SpaceX.
Key References:
- Wall Street Journal: OpenAI’s Sam Altman Explored Deal to Build SpaceX Rival (2025)
- The Independent: Sam Altman’s Rocket Deal to Take on SpaceX (2025)
- BuiltinSeattle: Stoke Space’s $510 Million Series D Funding for Nova Rocket (2025)
- Satellite Today: Stoke Space’s Government Contract and Funding (2025)
- ISS National Lab: Launch of Orbital Data Center Prototype to ISS (2025)
- Nvidia Blog: Starcloud GPU Computing in Orbit (2025)
- Space Insider & GovTech: Overview of SpaceX Competitors (2025)
- CryptoBriefing: Analysis of Altman’s Exploration in Space Sector (2025)
- Times of AI, OpenTools.ai, US Funds Reports on AI Aerospace Trends (2025)