Reports suggest Google and SpaceX are discussing the possibility of launching data centers into space, a move that could revolutionize AI computing but might just be too pricey for now.

The potential deal comes amid SpaceX's preparations for its $1.75 trillion IPO later this year, with investors betting on orbital data centers becoming the cheapest option for AI compute in the near future.

Elon Musk has been advocating for these orbiting data centers, claiming they are cheaper to operate and free from local backlash that ground-based buildouts face. However, TechCrunch reports terrestrial data centers remain much cheaper when launch costs are included.

Google is also exploring other rocket-launch companies for this venture and plans to launch prototype satellites by 2027 under its Project Suncatcher initiative, announced last year. The company invested $900 million in SpaceX in 2015 according to regulatory filings.