Elon Musk's plan for a space-based data center has revealed more details. According to multiple foreign media reports, to more conveniently deploy a satellite network dedicated to artificial intelligence (AI), SpaceX CEO Elon Musk intends to build a massive electromagnetic catapult and a satellite assembly factory on the Moon, using electromagnetic propulsion to launch satellites into Earth's orbit.

Simultaneously, news emerged of a significant price reduction for Starlink, the global satellite broadband project operated by SpaceX. Musk responded that the Starlink price cut is unrelated to competition from Amazon but is aimed at making the service more affordable for more people.

It is reported that SpaceX may choose June of this year for its initial public offering (IPO), with a potential valuation exceeding $1.5 trillion, making it one of the largest IPOs globally.

On February 24 local time, the three major U.S. stock indices collectively rose. The Nasdaq gained over 1%, with Advanced Micro Devices up nearly 9%, Intel up nearly 6%, Taiwan Semiconductor Manufacturing Company up over 4%, Qualcomm up over 3%, Tesla Motors up over 2%, Amazon and Microsoft each up over 1%, and Nvidia up 0.68%.

Launching AI Satellites from the Moon via Electromagnetic Catapult

Citing a report from the French science website Futura on the 23rd, it was stated that Musk intends to construct a giant electromagnetic catapult and a satellite assembly plant on the Moon, with the former launching satellites into Earth orbit.

Space Exploration Technologies Corp. (SpaceX) recently submitted an application to the U.S. Federal Communications Commission proposing to deploy a system of up to 1 million satellites in low Earth orbit to build an orbital data center network supporting high-performance computing needs like AI. These satellites are planned to operate at altitudes between approximately 500 and 2000 kilometers, powered by solar energy, and communicating primarily via lasers with each other and with the company's Starlink satellite internet to ensure high-speed data transmission.

Analysis from Futura suggests that Musk's concept of "launching satellites from the Moon" has theoretical merit. The Moon's lower gravity, lack of atmospheric drag, and abundant solar energy could theoretically make launch efficiency far superior to Earth, facilitating the deployment of large-scale satellite networks while avoiding the increasingly congested low Earth orbit space. However, turning this concept into reality faces significant challenges.

Musk believes that solar power generation efficiency in space is much higher than on the ground, and the extreme cold in areas without sunlight aids cooling. "The cheapest place to deploy AI is in space," he said, adding that deploying AI data centers in space "will become a reality within two years, three at most."

However, OpenAI CEO Sam Altman expressed skepticism about Musk's idea. In an interview with The Indian Express, Altman said that while space-based AI data centers are feasible in the long term, it is unlikely within the next decade, citing reasons such as high launch costs and operational and maintenance difficulties.

Musk Responds to Major Starlink Price Cut

Since its launch in 2020, SpaceX's Starlink satellite internet service has rapidly surpassed traditional rocket launch services to become the company's most important revenue pillar. By the end of 2025, Starlink had 9.2 million users, with SpaceX's total revenue for that year estimated between $15 and $16 billion and EBITDA profit around $8 billion. This month, Starlink announced its active user base had surpassed 10 million.

Some banks project that SpaceX's valuation at IPO could exceed $1.5 trillion, with a potential fundraising scale surpassing $50 billion. This valuation level would make it one of the largest IPOs globally.

SpaceX may choose June for its initial public offering. Both the market and investors anticipate that Starlink will continue to contribute strong cash flow in the coming years, becoming the core driver of SpaceX's development.

However, on February 23 local time, according to a report by The Information, Starlink is implementing significant price reductions and providing hardware free of charge to distribution partners. The report suggested these measures are being taken ahead of SpaceX's planned IPO and the launch of Amazon's Kuiper satellite system, aiming to lock in customers before competition intensifies.

Responding to this, Musk stated: "This has nothing to do with Kuiper; we simply want to make Starlink more affordable and accessible to a broader user base. The lower the cost, the more it can benefit people in less favorable economic conditions."

The Information reported that recently, to sustain user growth, Starlink is increasingly competing directly with mass-market telecom operators, deviating from the premium service positioning initially envisioned by SpaceX CEO Elon Musk. The substantial cuts in hardware and subscription fees, while stimulating user growth, could also squeeze profit margins.

According to the report, Starlink launched a low-cost plan in the US last year priced at $50 per month. Two former SpaceX employees revealed that in some scenarios, the company even provided user terminals, which cost up to $600 each to manufacture, free of charge. Two other former employees indicated that price reductions started earlier in Europe due to demand falling short of expectations.

This round of price cuts coincides with the planned launch later this year of Starlink's first genuine potential competitor—Amazon's Leo satellite service—in the US and other countries. At the same time, Starlink is also investing funds to improve its previously basic customer service system and opening its first batch of physical retail stores.

Tim Farrar, a satellite communications consultant at TMF Associates, commented: "Although Starlink's user growth is rapid, they are slashing prices frantically to maintain that growth rate. They've already covered users in remote areas; now they must compete directly with AT&T and Comcast, which necessitates pushing prices even lower."

Amazon plans to leverage its Prime membership system to promote individual subscriptions, utilize existing AWS partnerships with enterprises and governments to drive business sales, and accelerate global licensing approvals. Amazon has not yet announced hardware or subscription prices, but the company has historically heavily subsidized hardware like Alexa and stated that its satellite internet plan aims to enhance global connectivity, thereby boosting e-commerce and entertainment businesses.