China is ramping up its bets on space-based artificial intelligence computing with the launch of a state-backed research institute in Beijing, accelerating a frontier tech race with the US just as Elon Musk’s SpaceX eyes a record-shattering US$75 billion market debut to fund its own orbital AI ambitions.
The establishment of the Beijing Space Intelligent Computing Research Institute marks a major step in the superpowers’ AI rivalry, which is increasingly extending beyond Earth as terrestrial AI data centres face energy bottlenecks.
The facility was established in late May in the Beijing Economic-Technological Development Area, a hi-tech hub known as E-Town that hosts many Chinese robotics and AI firms.
It was launched by a consortium of backers led by the National Information Technology Application Innovation Park – a joint initiative established in 2019 by the Ministry of Industry and Information Technology and the Beijing municipal government.
The institute would focus on cutting-edge research across space-computing chips, inter-satellite laser communication, space energy and space safety standards, according to a notice published on Friday by the Beijing Association for Science and Technology (BAST).
It aims to develop and launch a pilot satellite by the end of 2028.
Founding members backing the facility include commercial aerospace companies GalaxySpace and LandSpace, alongside semiconductor firms Beijing Guanyu Chip Computing Technology and CXJD.
The group planned to pool resources to develop platforms for testing, validating and commercialising space-computing technologies, BAST said.
China’s accelerating investment in space computing comes amid unprecedented capital expansion in the US commercial aerospace sector. According to SpaceX’s prospectus for its highly anticipated Nasdaq initial public offering next Friday, the loss-making rocket giant plans to steer a significant portion of its record-breaking proceeds into expanding AI infrastructure.
Space computing – the deployment of data-processing and AI capabilities on satellites and other orbital platforms – was gaining momentum as growing AI demand strained Earth-bound data centres and energy grids, said Wu Qi, analyst at Beijing-based consultancy Pangoal.
Solar-powered space computing was emerging as a new solution, Wu said.
Beijing has rapidly stepped up institutional support for the sector. In April, China established its first Space Computing Committee to bring together corporate and industry groups to standardise technological frameworks and build an ecosystem.
Local governments are also racing to answer Beijing’s call in its draft 15th five-year plan, which outlines an integrated service system linking space- and ground-based communication and computing infrastructure.
Shanghai unveiled a space computing industry ecosystem partners programme last month alongside the Xingshu Project, or Star Hub, to build a global space-based intelligent computing network.
Guangzhou launched a 20 billion yuan (US$3 billion) aerospace industry investment fund last month to “support the entire aerospace industry chain”, backed by the municipal government, state-owned enterprises and government-guided funds, and financial institutions.