OpenAI CEO Sam Altman Targets SpaceX Competition With Rocket Deal

TLDR

• Sam Altman explored buying or partnering with rocket company Stoke Space during summer and fall 2025, seeking a controlling stake through billions in equity investments
• The talks with Stoke Space are no longer active according to sources close to OpenAI
• Altman has discussed building data centers in space to handle AI computing demands and reduce environmental impact on Earth
• Stoke Space was founded by former Blue Origin employees and is developing a fully reusable rocket similar to SpaceX’s goals
• The potential deal would have put Altman in direct competition with Elon Musk’s SpaceX and xAI ventures

OpenAI CEO Sam Altman explored a deal to acquire or partner with rocket company Stoke Space earlier this year. The discussions began in the summer of 2025 and picked up momentum during the fall.

One proposal involved OpenAI making a series of equity investments to gain a controlling stake in Stoke Space. The total investment would have reached billions of dollars over time.

However, sources close to OpenAI confirm the talks are no longer active. The reasons for ending the discussions were not disclosed.

Stoke Space was founded by former employees of Blue Origin, the space company backed by Amazon founder Jeff Bezos. The company focuses on developing a fully reusable rocket system.

This technology represents a key goal in the space industry. SpaceX is also working toward achieving full rocket reusability.

Space-Based Data Centers

Altman has long expressed interest in building data centers in space. He argues that the growing demand for computing power to run AI systems could create environmental problems on Earth.

Space-based data centers could use solar power directly. This would eliminate many of the energy concerns associated with Earth-based facilities.

Tech leaders including Bezos, Elon Musk, and Google CEO Sundar Pichai have supported the concept. Google and satellite operator Planet Labs plan to send prototype satellites with AI chips to space in 2027.

Competition With SpaceX

A partnership with Stoke Space would have positioned Altman to compete directly with Musk’s SpaceX. SpaceX currently dominates the commercial rocket launch market.

Musk also runs xAI, an artificial intelligence startup that competes with OpenAI. Altman recently launched Merge Labs, a brain-computer interface company competing with Musk’s Neuralink.

Working with Stoke would have given Altman access to the Nova rocket under development. Building a new rocket from scratch typically takes a decade and faces technical and regulatory challenges.

Several companies are working to challenge SpaceX’s market position. Blue Origin, Rocket Lab, and Stoke Space are among the competitors.

OpenAI signed nearly $600 billion in new computing commitments in recent months. The company expects to generate $13 billion in revenue this year.

Altman previously ran startup incubator Y Combinator, which invested in Stoke Space. He oversees an investment portfolio containing more than 400 companies.

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