AI Compute, Earth and Orbit
Sherzod@sherzod
−15.3%
since Oct 8
The idea
I believe AI needs so much computing power that some of it eventually moves into orbit, where power and cooling are nearly free. Half this basket owns the chips, power, and cooling gear fueling AI buildout on Earth today, and half owns the rockets, satellite builders, and hardened components needed to put data centers in space. I hold a small cash reserve to add on dips, spread the space side across many smaller suppliers since not all will succeed, and plan to hold for a decade or more, changing course only if orbital computing clearly fails to materialize.
What it owns
- These companies design and manufacture the processors and memory that every AI data center requires, whether located on the ground or in orbit. · NVIDIA CorporationIt designs most of the processors powering AI data centers globally and generates revenue whenever major cloud builders spend on advanced compute hardware., Taiwan Semiconductor ManufacturingIt manufactures the most advanced chips for NVIDIA, Broadcom, Google and others, so it profits from any builder's success whether on Earth or in orbit., Broadcom Inc.It designs custom AI chips for major cloud companies and produces the networking equipment that connects thousands of processors together in data centers., Micron TechnologyIt manufactures high-speed memory stacks that must sit next to every AI processor, a critical component in limited supply relative to current demand.30%
- Satellites carrying AI chips require space-grade components including radiation-hardened processors, optical interconnects and structural elements from specialized suppliers. · Coherent Corp.It produces lasers and optical components used for data movement between AI chips on Earth and for linking satellites together in orbit., Planet LabsIt builds and operates satellites and serves as Google's partner on Project Suncatcher, providing direct exposure to Google's orbital compute initiative., STMicroelectronicsIt produces radiation-hardened chips specifically designed to survive the space environment and work reliably in large satellite networks., Mercury SystemsIt manufactures rugged computing electronics built to function in harsh environments including orbit and space., Redwire CorporationIt produces solar arrays and structural components for satellites, hardware needed to power and support orbital data centers., AXT Inc.It makes specialty wafers used to manufacture both lasers for data transmission and high-efficiency solar cells for space power systems.24%
- Electricity and cooling capacity are the primary constraints limiting AI data centers on Earth, which is driving interest in space-based alternatives. · Vertiv HoldingsIt specializes in power and cooling systems that manage the intense heat generated by large AI data centers on Earth., GE VernovaIt builds gas turbines and grid infrastructure to supply the additional electricity that growing data center capacity requires., Constellation EnergyIt operates the largest US nuclear fleet providing reliable around-the-clock power that data center operators need, and recently expanded its capacity through contracts with major tech companies., Eaton CorporationIt manufactures transformers, switchgear and power distribution equipment that connects grid electricity to chips inside data centers.22%
- Every orbital data center needs rocket transportation to reach orbit, so launch providers benefit regardless of which builder succeeds. · Rocket LabIt provides launch services and satellite components, both essential for deploying and operating data centers in orbit., Firefly AerospaceIt aims to serve as an additional launch provider for orbital data center customers seeking alternatives to existing operators.11%
- These are the companies actively developing plans to deploy AI data centers in orbit. · Alphabet Inc.It designs its own AI chips and data centers on Earth while also pursuing orbital compute through a partnership called Project Suncatcher.8%
- Cash6%