According to FoxNewsAI on X, Fox News reports a growing race between China and SpaceX to build space-based AI data centers that combine on-orbit compute with satellite networks for faster inference and reduced downlink costs. As reported by Fox News, proponents argue that processing data in orbit can shrink latency for Earth observation analytics, autonomous maritime and aviation services, and resilient battlefield ISR, while lowering bandwidth expenses by transmitting only model outputs. According to Fox News, SpaceX’s Starlink architecture provides a commercial springboard for distributed edge inference in low Earth orbit, whereas China is accelerating state-backed constellations and sovereign AI compute to secure strategic advantages in remote sensing, navigation augmentation, and secure communications. As reported by Fox News, the business impact spans new revenue streams in on-orbit model hosting, inference-as-a-service for geospatial customers, and premium SLAs for latency-sensitive industries, while creating supplier demand across radiation-hardened accelerators, power-efficient inference chips, thermal management, inter-satellite links, and secure model update pipelines.