SoftBank Founder Criticizes Elon Musk’s Space Data Center Plan as Risky and Impractical

Masayoshi Son, founder of SoftBank, expressed strong skepticism about Elon Musk’s plan to deploy data centers in space during SoftBank’s annual investor meeting last week. Son, known for bold tech investments and some notable failures like WeWork, questioned the practicality and value of Musk’s ambitious project, which aims to launch satellite-based data centers by 2028 through SpaceX. Musk claims this approach will significantly reduce energy costs for data centers.

However, Son challenged the premise, noting that electricity accounts for only about 7% of data center operating costs, with the majority spent on chips. He also highlighted the considerable uncertainties and technical challenges involved, estimating it could take a decade or more to resolve them. Given the rapid pace of AI development, Son argued this timeline is too long, emphasizing that the AI sector’s winners will be decided in the near future.

Son urged a focus on short-term AI opportunities rather than speculative space ventures, stating, "Instead of focusing on space, where we have no idea what will happen with AI, we need to concentrate on the short-term and aim to be first in every AI-related business." SoftBank plans to invest tens of billions of dollars in AI infrastructure in the coming years, underscoring its commitment to AI over space-based data centers.

This critique comes as Musk’s SpaceX prepares for a potential public offering, with the space data center concept being a key part of its investor pitch. Son’s comments reflect caution about the feasibility and timing of such futuristic projects amid the fast-evolving AI landscape.