Space startups seek insurance for orbital AI data centers
Space startups are speaking with insurers to protect their upcoming AI data centers in orbit, a big leap backed by SpaceX and Blue Origin.
These projects hope to bypass Earth's energy limits and push AI tech further, but getting insurance is key if they want debt financing needed to scale them.
Insurers unsure about orbital chip risks
Companies like Orbital and Lonestar Data Holdings are starting talks about coverage for their expensive gear and space risks.
Lonestar even pitched its plans to about 25 insurers at Marsh's offices for insurance marketplace Lloyd's of London.
Insurers are not sure how to handle these new risks, especially since advanced AI chips could be affected by space conditions.
As Orbital's CEO Euwyn Poon puts it, part of the challenge is valuing rapidly advancing AI chips, which could be vulnerable to harsh conditions in space.