Woofun AI notes that Altimeter Capital co-founder Brad Gerstner and Atreides Management analyst Andrew Fox discussed the economic viability of deploying AI computation power in space during a recent BG2 podcast episode. They view this orbital strategy as a potential long-term option value embedded within SpaceX's broader valuation framework.

Fox calculated that each Starship launch could support approximately 5 terawatts of computing capacity, with capital expenditure for space deployment estimated at $5 billion per gigawatt. This contrasts sharply with ground-based data centers, where infrastructure costs—including switching equipment, generators, transformers, buildings, power acquisition, and cooling—can reach $20-25 billion per gigawatt. Gerstner further highlighted that total ground deployment costs for 1 gigawatt of compute power may hit $60 billion, comprising roughly $35 billion for GPUs and chips and $25 billion for physical infrastructure. He noted that while ground elements face inflationary pressures, space offers nearly free power and cooling in its economic model. Despite these advantages, Fox clarified that orbital computing is not a prerequisite for SpaceX's IPO valuation, serving instead as a significant upside potential rather than a core valuation premise.