SoftBank founder Masayoshi Son said electricity makes up only a small share of AI infrastructure costs, arguing that orbital data centres face significant operational and networking challenges.
SoftBank founder Masayoshi Son has pushed back against Elon Musk’s vision of building AI data centres in space, saying the industry should focus on opportunities that can deliver results in the near future rather than speculative long-term projects, Business Insider reported.
Addressing shareholders, Son questioned the practicality of orbital AI infrastructure. “What’s the point? What’s the benefit of building AI data centre in space?” he said when asked whether SoftBank was considering a strategy similar to Musk’s.
Son argued that reducing electricity costs alone does not make a compelling case for moving data centres beyond Earth. According to SoftBank’s translation of his remarks, electricity represents only around 7 per cent of the cost of operating AI infrastructure, while chips and other expenses account for the remaining share.
He said any gains from cheaper power would likely be outweighed by the challenges of transporting equipment into orbit and managing maintenance, networking and latency issues.
While acknowledging Musk as a “remarkable agent of change”, Son said SoftBank is concentrating on expanding AI infrastructure on Earth. “In the battle for AI, the next few years will be far more important than what might happen a decade or so from now,” he said, stressing the importance of near-term execution in the rapidly evolving AI sector.
“He who strikes first wins,” Son added, outlining his belief that leadership in artificial intelligence will be determined over the coming years rather than in the distant future.
The comments come as SoftBank ramps up investments in AI and related infrastructure, including major commitments to OpenAI and data centre projects globally. Son said competition among AI companies is intensifying but noted there remains significant room for growth across the industry.
Musk has been among the strongest advocates of orbital data centres, with SpaceX pursuing plans for a vast network of satellites that could function as AI computing hubs powered by solar energy. The concept has also drawn support from Amazon founder Jeff Bezos, who has described space-based data centres as “very realistic.”
Not everyone shares that optimism. OpenAI CEO Sam Altman has previously dismissed the idea, calling orbital data centres “ridiculous” and arguing they are unlikely to become important at scale this decade.
