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Elon Musk expands terrestrial and orbital AI infrastructure plans

Elon Musk predicts orbital AI compute could surpass new land-based facilities by 2028 as he expands physical data centers.

FTMQ Business, written by our newsroom0 views

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Picture: Seeking Alpha Markets

Elon Musk has predicted that artificial intelligence computing capacity placed in orbit could surpass new terrestrial installations by late 2028, Seeking Alpha Markets and Seeking Alpha reported. The vision outlines an expansion for SpaceX into AI infrastructure as its xAI arm competes with industry rivals like Microsoft, Seeking Alpha Markets added. [1][5]

At the same time, Musk is expanding his ground-based infrastructure. Business Insider, BigGo Finance, and Dealroom reported that Musk is adding two new sites, including a former Spam factory and a gun range, to expand his Colossus 2 AI complex. BigGo Finance noted that the gun range site is scheduled to be online by late November. [2][3][4]

The ground expansion aims to scale hardware rapidly. Dealroom reported that the addition of the gun range and Spam clusters is part of a broader path to host approximately 1.2 million Nvidia Blackwell chips by the end of the year. [4]

Musk serves as the chief executive officer of SpaceX and Tesla, and Forbes estimated his net worth at 1.1 trillion dollars as of October 2026. As FTMQ Business reported earlier, local state policies and capital spending are critical to data center development, with projections showing hyperscaler capital expenditure could top 1 trillion dollars by 2027. [6][9]

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In short

  • Elon Musk predicted orbital AI compute capacity could surpass new ground installations by late 2028.
  • Musk is expanding his Colossus 2 AI facility by adding a gun range site and an old Spam factory.
  • Dealroom reported the expanded Colossus 2 complex aims to house about 1.2 million Nvidia Blackwells by year-end.

Sources

Every paragraph above points to the numbered items it rests on. Read the originals here.

  1. [1]Elon Musk sees orbital AI surpassing data centers as Colossus leadsSeeking Alpha Markets, 2d ago (the report this story comes from)
  2. [2]Elon Musk says he is taking over an old Spam factory and a gun range to expand his Colossus 2 AI complexBusiness Insider, 2d ago
  3. [3]Musk Adds Two Sites to Colossus 2, With 'Gun Range' Due by Late NovemberBigGo Finance, 2d ago
  4. [4]Musk: SpaceX's Colossus 2 adds 'Gun Range' and 'Spam' clusters on the way to about 1.2M Nvidia Blackwells by year-endDealroom, 2d ago
  5. [5]Elon Musk sees orbital AI surpassing data centers as Colossus leads (SPCX:NASDAQ)Seeking Alpha, 2d ago

Background

  1. [6]Elon Musk on Wikipedia
  2. [7]SpaceX Starship on Wikipedia
  3. [8]Elon Musk on Grokipedia
  4. [9]State and local races key to US economic future and AI investment FTMQ Business, 9d ago

Our newsroom writes these reports with the help of software, from the 9 sources listed and nothing else, and checks them against those sources. Facts can still be wrong or move on; the originals are the record. Spotted a mistake? Write to daniel@monsterkong.com.

Earlier reports of ours on the same people and subjects.

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