With OpenAI announcing “Code Red” on Monday, Sam Altman appears to be making preparations to expand into industries beyond artificial intelligence technology. In a latest report by a prominent news outlet, the chief executive shared his vision to build a “rocket company” that would rival the likes of Elon Musk’s SpaceX as well as Jeff Bezos’s Blue Origin.
In the past decade or so, there has been an increased interest in investments in not merely in the AI race. The interest has also been attracted by the possibility of making commercial space travel come to fruition in real life. With Elon Musk stepping in the rocket industry with SpaceX and also getting government contracts, it appears Sam Altman too wants to follow a similar path.
Sam Altman plans to step into rocket industry against rival Elon Musk
In a report by The Wall Street Journal dated December 3, OpenAI CEO Sam Altman expressed his plans to establish a “rocket company” of his own. He reportedly has been exploring financial options to “acquire or partner with a rocket company,” which would inadvertently make him a competitor in rocket market against SpaceX CEO Elon Musk.
As per the report, Altman has already approached Stoke Space this year. According to sources to the news outlet, “Among the proposals was for OpenAI to make a series of equity investments in the company and end up with a controlling stake. Such an investment would total billions of dollars over time.” However, there has reportedly been no positive outcome from the talks for an acquisition of or partnership with a rocket building company.
The company has been making headlines this week for announcing “Code Red” after their latest GPT-5.1 launch succumbed to Google’s Gemini 3’s brilliant performance in the market. Simultaneously, the report stated OpenAI has been facing significant challenges after “striking hundreds of billions of dollars in computing deals without publicly offering a clear picture of how the startup will pay for the build-out.” Thus, it is worth pondering over why Altman is already looking forward to building a business outside the AI tech industry.
Related: OpenAI CEO Sam Altman Plans To Make A “Very Aggressive” Bet
Has the AI race gone beyond the industry?
In a 2024 report by Forbes, it was mentioned that in recent years, space has been envisioned as an economy with potential as vast as the extent of the universe. The emergence of the notion of commercial space travel is one of the first steps in capturing the space economy in its entirety.
With each passing day, the utility of AI is transcending industries, ranging from education, social media, automobiles, and the list goes on. And space is no exception. As AI technology continues to develop with varied ideas of its application emerging simultaneously, its utility in space would definitely be an idea worth exploring.
According to the aforementioned report by The Wall Street Journal, Altman’s plans to have a rocket company is reportedly associated with his vision of AI technology. The report said, “Altman has been interested in the possibility of building data centers in space for some time.”
The WSJ report also hints at the environmental challenges that could hinder “the insatiable demand for computing resources to power artificial-intelligence systems,” thus, making “space a better option.” It added, “Orbital data centers would allow companies to harness the power of the sun to operate them, advocates say.” As questions of over-spending in AI and a possible resource crisis in the future, Sam Altman’s plans to establish a rocket company could influence global perceptions of data storage and AI utility.
Also Read: Elon Musk Celebrates New Milestone as Air Force Approves SpaceX Launches From Cape Canaveral
