China's burgeoning space program has taken significant strides towards carving out a leading position in the emerging domain of space-based artificial intelligence (AI) computing. A recent announcement by the China Aerospace Science and Technology Corporation (CASC), conveyed through the state-run China Global Television Network (CGTN) on January 29, sheds light on a comprehensive five-year plan intended to realize an expansive "gigawatt-level space digital infrastructure." This initiative aims to enable sophisticated data processing capabilities directly in orbit around Earth, leveraging solar-powered AI satellites.
Central to China's aspirations is the exploration of extraterrestrial resources. The strategy includes pioneering efforts in asteroid resource exploration, with ambitions extending to the autonomous extraction of minerals and subsequent "in-orbit processing." These endeavors suggest a concerted push to create self-sustaining, space-based manufacturing and data processing ecosystems that complement terrestrial technologies.
China's increased focus on orbital datacenters places it in explicit competition with various U.S. stakeholders, encompassing both government agencies and private companies. NASA continues to play a pivotal role in national space initiatives. Simultaneously, companies like SpaceX, under the leadership of Elon Musk, have championed the concept of orbital datacenters and human settlements beyond Earth, such as on Mars. Musk's high-profile advocacy for establishing space-based civilizations underscores the competitive backdrop against which China is accelerating its plans.
In parallel to governmental activity, Chinese corporate achievements also underscore the momentum in space technology. Alibaba Group Holding Ltd. (NYSE: BABA) recently reported a milestone with its Qwen-3 AI model, which achieved the distinction of being the first general-purpose artificial intelligence to execute inference tasks in orbit. This breakthrough exemplifies the strides being made in integrating advanced AI capabilities into space-based platforms.
The scope of China's ambitions extends beyond computing to encompass space tourism, marking another commercial frontier in the country's space strategy. Official reportage indicates an objective to "establish a comprehensive space tourism operation system," signaling intent to develop robust infrastructure and commercial frameworks for enabling civilian space travel.
One pioneering private enterprise, InterstellOr, has publicly declared plans for its inaugural crewed spaceflight slated for 2028, with ticket sales already underway. Prospective passengers face a price point of approximately RMB 3 million (around $430,000), reflecting the premium nature of nascent space tourism offerings.
On the U.S. side, Blue Origin, the spaceflight company founded by Jeff Bezos, has been a leading force in suborbital space tourism. The firm has conducted manned flights that bring civilians to the threshold of outer space, although it has temporarily ceased such operations. This suspension reflects a strategic pivot towards supporting NASA's Artemis Mission, focused on returning humans to the Moon. Notably, Blue Origin also made history by launching the first all-women crew, which featured high-profile individuals including pop artist Katy Perry and Lauren Sánchez, Bezos's then-fiancée.
Leadership figures in U.S. space endeavors continue to advocate for ambitious exploration and propulsion projects. Jared Isaacman, known both as former CEO of Shift4 Payments Inc. (NASDAQ: FOUR) and as a NASA Administrator under President Donald Trump, has publicly endorsed the agency's goals of lunar exploration and human missions to Mars. He emphasizes the potential of nuclear-powered spacecraft as enabling technology for these ventures.
As these developments unfold, the intensifying rivalry between the United States and China in space technology encapsulates a dynamic high-tech competition with broad implications. The race to dominate space-based AI infrastructure and commercial space activities promises to catalyze significant technological innovation. Stakeholders and observers alike will watch closely as these projects evolve and unfold in the coming years.