Jeff Bezos’s Blue Origin has officially challenged Elon Musk’s SpaceX by filing a massive proposal to build a computing network in the stars. In a March 19, 2026 application to the Federal Communications Commission (FCC), Blue Origin unveiled Project Sunrise, a plan to launch up to 51,600 satellites designed specifically to host orbital data centres.
The move marks a major escalation in the rivalry between the two billionaires, coming just weeks after SpaceX and xAI reportedly merged to create a trillion-dollar entity focused on space-based AI. While Musk has proposed a staggering constellation of up to one million satellites, Blue Origin is positioning its 51,600-satellite fleet as a more focused and responsible infrastructure play.
Blue Origin argues that moving AI workloads to space is the only way to solve the energy crisis facing the industry. On the ground, data centres are straining power grids and consuming millions of gallons of water for cooling. In orbit, these satellites can harvest near-constant solar energy without the environmental “gut punch” required by terrestrial facilities.
In the filing, Blue Origin took a direct swipe at SpaceX’s ambitious plans, calling them “profoundly disproportionate” and a risk to the orbital environment. Amazon, also founded by Bezos, supported the push by arguing that the SpaceX plan lacked technical detail and could take “centuries” to actually complete.
Project Sunrise satellites will rely on high-speed lasers to route data through Blue Origin’s upcoming TeraWave network. The company plans to use its heavy-lift New Glenn rocket (which has now launched successfully twice) to deploy the hardware at what it calls “previously unattainable” price points.
The FCC is now faced with a difficult decision as it reviews these competing visions for the future of AI. While the potential for green, solar-powered compute is high, skeptics like OpenAI’s Sam Altman have called the idea of orbital data centres “ridiculous” due to the immense technical and hardware challenges involved. Now, what’s that’s saying again? Imitation is the sincerest form of flattery, right?
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