OpenAI's Sam Altman Explored Deal To Acquire Potential Rival To Elon Musk's SpaceX: Report

**OpenAI** co-founder and CEO **Sam Altman** reportedly explored deals to acquire a potential rival to **Elon Musk**'s commercial space flight company **SpaceX** amid a “code red” declaration focused on improving product quality.

## Deal Involved Partnering With Or Taking Over Stoke Space

The deal involved Altman acquiring or partnering with **Stoke Space**,a company founded by former **Jeff Bezos**-backed SpaceX rival **Blue Origin** employees, but the deal was called off, the Wall Street Journal [reported](https://www.wsj.com/tech/ai/sam-altman-has-explored-deal-to-build-competitor-to-elon-musks-spacex-01574ff7) on Wednesday.

_OpenAI and Stoke Space didn't immediately respond to_ [_Benzinga_ _'s request for comment._

Stoke Space, based out of Kent, WA, describes itself as a company that aims to provide "seamless mobility to, through, and from space." Its "100% reusable" rocket, **Nova**, possesses "a liquid, regeneratively cooled metallic reentry heat shield."

It boasts a payload capacity of 3 tons to Low Earth orbit and claims to be 100% reusable. Sources cited in the report said that the deal was called off earlier this year.

The report also mentions that Altman was reportedly aiming for a controlling stake in Stoke Space via equity investment.

## Elon Musk’s Space-Based Datacenter Goal

The news comes amid a push among companies to establish orbital datacenters with Musk doubling down on the phenomenon and predicting a convergence between his enterprises like **Tesla Inc.** (NASDAQ: TSLA), SpaceX and **xAI**.

Musk had earlier touted solar-powered AI datacenter satellites in space as a cost-effective alternative to its ground-based counterparts on Earth. He then shared that chip production remained his only major puzzle piece yet to be solved.

## Jeff Bezos, Sundar Pichai Also Back Space Datacenters

Meanwhile, **Amazon.com Inc.** (NASDAQ: AMZN) founder Bezos had touted the idea of Gigawatt-scale data centers in space, also agreeing that such installations could prove to be more cost-effective. Bezos is also backing a new startup called **Project Prometheus**, which will work on AI applications in the automotive, aerospace and scientific research sectors.

On the other hand,  **Sundar Pichai**, CEO of **Alphabet Inc.** (NASDAQ: GOOGL) (NASDAQ: GOOG), also outlined the company's orbital datacenter bet, **Project Suncatcher**,which aims to launch a low Earth orbit data center powered directly through solar energy in orbit.

<p><strong>OpenAI </strong>co-founder and CEO <strong>Sam Altman</strong> reportedly explored deals to acquire a potential rival to <strong>Elon Musk</strong>'s commercial space flight company <strong>SpaceX</strong> amid a &#8220;code red&#8221; declaration focused on <a href="https://www.benzinga.com/markets/tech/25/12/49180337/openai-panics-amid-geminis-surge-sam-altman-pauses-monetization-in-code-red-pivot-3-years-after-googles-search-crisis">improving product quality</a>.</p>



<h2 class="wp-block-heading">Deal Involved Partnering With Or Taking Over Stoke Space</h2>



<p>The deal involved Altman acquiring or partnering with <strong>Stoke Space</strong>,<strong> </strong>a company founded by former <strong>Jeff Bezos</strong>-backed SpaceX rival <strong>Blue Origin </strong>employees, but the deal was called off, the Wall Street Journal <a href="https://www.wsj.com/tech/ai/sam-altman-has-explored-deal-to-build-competitor-to-elon-musks-spacex-01574ff7">reported</a> on Wednesday.</p>



<p><em>OpenAI and Stoke Space didn't immediately respond to </em><a href="https://pro.benzinga.com"><em>Benzinga</em></a><em>'s request for comment.</em></p>



<p>Stoke Space, based out of Kent, WA, describes itself as a company that aims to provide "seamless mobility to, through, and from space." Its "100% reusable" rocket, <strong>Nova</strong>, possesses "a liquid, regeneratively cooled metallic reentry heat shield."</p>



<p>It boasts a payload capacity of 3 tons to Low Earth orbit and claims to be 100% reusable. Sources cited in the report said that the deal was called off earlier this year.</p>



<p>The report also mentions that Altman was reportedly aiming for a controlling stake in Stoke Space via equity investment.</p>



<h2 class="wp-block-heading">Elon Musk&#8217;s Space-Based Datacenter Goal</h2>



<p>The news comes amid a push among companies to establish orbital datacenters with Musk doubling down on the phenomenon and <a href="https://www.benzinga.com/markets/tech/25/11/49128676/elon-musk-doubles-down-on-solar-powered-ai-satellites-predicts-convergence-between-tesla-spacex-xai-tesla-is-the-world-leader-in">predicting a convergence</a> between his enterprises like <strong>Tesla Inc.</strong> <a href="https://www.benzinga.com/quote/TSLA" target="_blank" class="ticker-link" data-ticker="TSLA" data-exchange="NASDAQ" rel="noopener">(NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/TSLA">TSLA</a>)</a>, SpaceX and <strong>xAI</strong>.</p>



<p>Musk had earlier touted solar-powered AI datacenter satellites in space as a <a href="https://www.benzinga.com/news/space/25/11/48969882/elon-musk-says-starship-can-deliver-300-gw-solar-ai-satellites-per-year-but-theres-one-major-piece-of-the-puzzle-that-stands-in-its-way">cost-effective alternative</a> to its ground-based counterparts on Earth. He then shared that chip production remained his only major puzzle piece yet to be solved.</p>



<h2 class="wp-block-heading">Jeff Bezos, Sundar Pichai Also Back Space Datacenters</h2>



<p>Meanwhile, <strong>Amazon.com Inc.</strong> <a href="https://www.benzinga.com/quote/AMZN" target="_blank" class="ticker-link" data-ticker="AMZN" data-exchange="NASDAQ" rel="noopener">(NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/AMZN">AMZN</a>)</a> founder Bezos had touted the idea of Gigawatt-scale<a href="https://www.benzinga.com/markets/tech/25/10/48032682/jeff-bezos-predicts-gigawatt-scale-orbital-data-centers-in-10-20-years-compares-ai-boom-to-early-2000s-dot-com-era"> data centers in space</a>, also agreeing that such installations could prove to be more cost-effective. Bezos is also <a href="https://www.benzinga.com/markets/tech/25/11/48915835/elon-musk-calls-jeff-bezos-copycat-after-reported-launch-of-ai-startup-project-prometheus-haha-no-way">backing a new startup</a> called <strong>Project Prometheus</strong>, which will work on AI applications in the automotive, aerospace and scientific research sectors.&nbsp;</p>



<p>On the other hand,&nbsp; <strong>Sundar Pichai</strong>, CEO of <strong>Alphabet Inc.</strong> <a href="https://www.benzinga.com/quote/GOOGL" target="_blank" class="ticker-link" data-ticker="GOOGL" data-exchange="NASDAQ" rel="noopener">(NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/GOOGL">GOOGL</a>)</a> <a href="https://www.benzinga.com/quote/GOOG" target="_blank" class="ticker-link" data-ticker="GOOG" data-exchange="NASDAQ" rel="noopener">(NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/GOOG">GOOG</a>)</a>, also outlined the company's orbital datacenter bet, <strong>Project Suncatcher</strong>,<strong> </strong>which aims to launch<a href="https://www.benzinga.com/markets/tech/25/11/48645977/great-idea-lol-says-elon-musk-as-sundar-pichai-reveals-plan-to-launch-googles-ai-data-center-into-space"> a low Earth orbit data center</a> powered directly through solar energy in orbit.</p>



<p><em>Check out more of Benzinga&#8217;s Future Of Mobility coverage by</em><a href="https://www.benzinga.com/topic/mobility"><em> following this link.</em></a></p>



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<p><em>Photo courtesy: jamesonwu1972/Shutterstock</em></p>