SpaceX and Blue Origin were in conflict over cloud data centers, each filing complaints with the FCC against the other.

Elon Musk and Jeff Bezos: a new round of space rivalry

The battle for the title of the richest person continues on Earth and beyond its borders. Recently SpaceX, Musk’s company, filed a counter‑complaint with the U.S. Federal Communications Commission (FCC) in response to Blue Origin – Bezos’ company – demanding that a competitor’s application to place data centers (DCs) in space be rejected.

What happened?
- Friday: SpaceX approached the FCC asking it not to follow Blue Origin’s requirements.
- Blue Origin submitted an application to host approximately 51,600 flying DCs in low Earth orbit.
- SpaceX had already filed a similar application in the past and now both companies are using FCC authority to compete for approvals.

Arguments of the parties
Side Thesis SpaceX: The applications from both companies are equal in scope and should be treated on an equal footing. Blue Origin: SpaceX’s application is “incomplete, speculative, and unrealistic.” It lacks specific implementation details for Musk’s project, which envisions launching up to 1 million satellites with DCs aboard. Blue Origin claims the application merely describes ambitious plans, not a real project, and uses it only to reserve administrative resources.
SpaceX now asks the FCC to apply the same criteria to its own application to host 51,600 satellites with DCs. The attached document contains public comments on the issue.

Why is this important?
Elon Musk aims to build a giant factory in Texas capable of producing enough AI chips annually to launch 1 terawatt of computing power. Most of that capacity is planned to be placed in space.

Gartner experts recently emphasized that projects to deploy DCs into orbit require not only serious technical solutions but also massive investments. Analysts warn that without a real plan, these costs could prove futile.

Bottom line: SpaceX and Blue Origin continue their fight for space, appealing to the FCC with different arguments. The outcome of the commission’s decision may determine the future of large-scale projects to place computing centers in low Earth orbit.