I'm still scratching my head about why anyone thinks this is a good idea, even if it was feasible. What AI problems become easier in space? Space is a vacuum so you'd need huge radiators to cool the things. The distance between individual satellite nodes, as well as between satellites and the ground stations, would add meaningful latency vs a data center where you've got thousands of servers physically wired together.
I guess they're thinking it's about energy? They can put big solar panels on the satellites and avoid having to rely on terrestrial power grids? It doesn't seem to me like the cost of producing and launching all those satellites and solar panels could possibly be worth it, especially when existing AI companies are still struggling to figure out how to grow demand and become profitable. If you're going to build that many solar panels, why not just put them in a desert on Earth?
I get that Elon is a fraud and the plan isn't even supposed to make sense, but I'm amazed so many finance people are apparently willing to entertain it like it's a serious idea.