TNB Tech Minute: SpaceX, Google in Talks to Launch Orbital Data Centers

Summary

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WSJ Tech News Briefing

Episode: TNB Tech Minute: SpaceX, Google in Talks to Launch Orbital Data Centers
Date: May 12, 2026
Host: Julie Chang

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Episode Overview

This episode spotlights several major developments in the tech industry, with breaking news on talks between SpaceX and Google to launch data centers in orbit. The briefing also covers a significant new investment by Tesla in its German Gigafactory and SAP's launch of an advanced enterprise software suite designed for the AI era. Each segment provides timely market context and exclusive insight into the strategies of industry leaders.

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Key Discussion Points & Insights

1. SpaceX and Google: Talks to Launch Orbital Data Centers

[00:16 – 01:12]

• Breaking News: The Wall Street Journal exclusively reports that SpaceX and Google are negotiating to build and deploy data centers in orbit.
  • "We exclusively report that SpaceX and Google are in talks to launch data centers in orbit. That's according to people familiar with the [matter]."
    — Julie Chang [00:20]
• Rationale:
  • Google is also exploring similar partnerships with other rocket companies to advance orbital data center technology.
  • Context: Orbital data centers are an emerging, unproven technology. Elon Musk, SpaceX CEO, has labeled this the “next frontier” for the company.
  • The initiative is crucial to SpaceX’s pitch to investors ahead of its anticipated IPO—the largest in history, planned for summer 2026.
• Potential Impact:
  • A Google-SpaceX deal is poised to significantly bolster SpaceX’s business case and valuation pre-IPO.
  • "A deal between the two tech titans would give a boost to SpaceX's business ahead of its listing."
    — Julie Chang [00:45]
• Note: SpaceX had not responded to requests for comment at the time of recording.

2. Tesla’s $250 Million Battery Investment in Germany

[01:13 – 01:39]

• Investment Announcement: Tesla will inject $250 million into its Gigafactory near Berlin to ramp up battery cell production.
  • "Tesla will invest $250 million into its German plant to increase battery cell production for electric vehicles."
    — Julie Chang [01:15]
• Gigafactory Overview:
  • Opened in March 2022, the facility specializes in Model Y vehicles and mass battery cell production.
  • This move aims to heighten European output to match renewed regional sales momentum.
• Market Data:
  • According to the European Automobile Manufacturers Association, Tesla sales in Europe nearly doubled in March post a year-long slump.
  • "Tesla's sales in the continent nearly doubled in March following a slump that stretched more than a year."
    — Julie Chang [01:34]

3. SAP’s New Autonomous Enterprise Suite

[01:40 – 02:11]

• Product Launch: SAP reveals an integrated enterprise suite weaving together data, AI, cloud, and automation for modern businesses.
  • "SAP launched its new autonomous enterprise software suite, bringing its data, cloud, artificial intelligence and automation features under one roof."
    — Julie Chang [01:41]
• Functionality & Partnerships:
  • The new suite promises improved processing, contextualization, and the deployment of AI agents within various business functions.
  • SAP is collaborating with leading tech providers, including Amazon Web Services, Google, Google Cloud, Microsoft, and Anthropic.
• Strategic Context:
  • SAP, known for platforms like Concur, is seeking to reassert its leadership as AI tech disrupts the traditional software market.
  • Software stocks, notably SAP, have struggled—down around 45% in the past 12 months.
  • "Software stocks have taken a beating lately due to AI. SAP shares are down roughly 45% over the past 12 months."
    — Julie Chang [02:08]

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Notable Quotes & Memorable Moments

• On the SpaceX–Google talks:
  "Orbital data centers are an unproven technology that SpaceX CEO Elon Musk has said is the next frontier for the rocket company." — Julie Chang [00:32]
• On Tesla’s resurgence in Europe:
  "The investment looks to boost output in Europe as its sales in the region regain strength." — Julie Chang [01:30]
• On SAP’s adaptation to AI disruption:
  "The German group has been trying to stay on top of a technology that cast doubt on the sustainability of the software industry." — Julie Chang [02:02]

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Timestamps for Important Segments

• SpaceX & Google Orbital Data Center Talks: 00:16 – 01:12
• Tesla’s $250M Battery Investment: 01:13 – 01:39
• SAP Autonomous Enterprise Suite: 01:40 – 02:11

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Summary

This TNB Tech Minute delivers concise, insider updates on transformative tech industry moves:

• SpaceX and Google may soon pioneer orbital data centers, with implications for cloud infrastructure and SpaceX's IPO.
• Tesla is doubling down on European battery production as it rebounds in regional markets.
• SAP’s major software revamp signals competitive adaptation to AI disruption, with strong partnerships in place.

Stay tuned for more quick tech updates from the Wall Street Journal’s expert team.

Transcript

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Here's your afternoon TNB Tech Minute for Tuesday, May 12th. I'm Julie Chang for the Wall Street Journal. We exclusively report that SpaceX and Google are in talks to launch data centers in orbit. That's according to people familiar with the. One of the people said Google is also exploring similar deals with other rocket companies. Orbital data centers are an unproven technology that SpaceX CEO Elon Musk has said is the next frontier for the rocket company. It has been central to the company's investor pitch ahead of its planned public listing this summer, which is expected to be the largest IPO of all time. A deal between the two tech titans would give a boost to SpaceX's business ahead of its listing. SpaceX didn't respond to a request for comment. Tesla will invest $250 million into its German plant to increase battery cell production for electric vehicles. The so called Gigafactory, which opened in March 2022, makes hundreds of thousands of Model Y vehicles and millions of battery cells. The investment looks to boost output in Europe as its sales in the region regain strength. Data from the European Automobile Manufacturers association showed that Tesla's sales in the continent nearly doubled in March following a slump that stretched more than a year. Finally, SAP launched its new autonomous enterprise software suite, bringing its data, cloud, artificial intelligence and automation features under one roof. The company behind the Concur travel and expense management platform said its new offering helps clients process and contextualize their data and deploy AI agents across business functions. SAP is partnering with anthropic Amazon Web Services, Google, Google Cloud and Microsoft for the new platform. The German group has been trying to stay on top of a technology that cast doubt on the sustainability of the software industry. Software stocks have taken a beating lately due to AI. SAP shares are down roughly 45% over the past 12 months and that's your TMB Tech minutes. We'll have another quick tech update in the morning.

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