China's new space computing hub targets orbital AI, SpaceX eyes $75B IPO

China has launched the Beijing Space Intelligent Computing Research Institute in late May, located in the Beijing Economic-Technological Development Area (E-Town). The consortium is led by the National Information Technology Application Innovation Park, a joint initiative of the Ministry of Industry and Information Technology and the Beijing municipal government, with private rocket company LandSpace as a backer. The institute will focus on space-computing chips, inter-satellite laser communication, space energy, and space safety standards, with a goal to develop and launch a pilot satellite by the end of 2028. This initiative is part of China's strategy to overcome the energy bottlenecks facing terrestrial AI data centers by moving computing to space.

Meanwhile, the move intensifies the US-China AI rivalry, now extending off-planet. Elon Musk's SpaceX is preparing a historic IPO valued at $75 billion to fund its own orbital AI ambitions. The competition underscores the growing interest in space-based computing as a solution to the massive energy demands of AI. As terrestrial data centers face power constraints, both nations are investing in satellite-based computing infrastructure to gain an edge in AI development and deployment, signaling a new frontier in the tech race.