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SoftBank’s CEO isn’t the only one with questions about Elon Musk’s orbital data center hype

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Not everyone is buying Elon Musk’s vision for orbital data centers

Masayoshi Son, the founder and CEO of Softbank, argued at a recent shareholder meeting that building data centers in space won’t do much to cut costs and will take too long when “in the battle for AI, the next few years will be far more important than what might happen a decade or so from now.”

On the latest episode of TechCrunch’s Equity podcast, Kirsten Korosec, Sean O’Kane, and I discussed Son’s remarks as part of a broader discussion that included OpenAI’s plans for custom chips, chipmaker Groq’s new $650 million funding, and much more.

Kirsten noted that it’s “very ironic” that Son is playing the skeptic here, given SoftBank’s “long history of wild bets.”

Sean, meanwhile, said that when Musk talks about “making a constellation of satellites — satellites that need to be replaced every few years as well —  to make up an ‘orbital data center,’” he’s just “guaranteeing that much more business” for SpaceX.

Keep reading for a preview of our conversation, edited for length and clarity.

Sean O’Kane: Listen, neo-clouds are the new oil, and everybody who wants to make money is pivoting to a neo-cloud. I’m proud to announce that TechCrunch is now a neo-cloud, give us all your money.

I mean, this is the thing you do. It seems like there are so many players that are compute constrained, so anybody who has a shot at being able to lease out that compute is taking it, whether that’s Groq, a company that was semi-hollowed out by Nvidia, or Allbirds, which went into bankruptcy and and emerged from it as a new neo-cloud provider instead of selling shoes — Tim Fernholz did an interview with the new CEO of of that new effort that I would definitely recommend people go read. 

Or whether you’re SpaceX, where your idea was: I’m gonna build an AI platform that’s gonna have an addressable market the size of U.S. GDP, but before we get there, we’ll just rent out our compute.  And we saw this continue to happen with SpaceX, where it’s not as big as the deals that they’ve struck with Google or Anthropic, but they just signed another deal, [their] first post IPO deal, to rent out compute to another smaller player. They’re continuing down that road. 

You know, I can see this being a business for Groq in the near term. The question with all of these is how durable is it in the long term.

Anthony Ha: If we’re talking about SpaceX and their AI business and data center business, we also have to talk about these comments that Masayoshi Son, the CEO of SoftBank, made recently, where he basically said: What is the point of data centers in space? Which is a question we’ve asked on this show. 

And it speaks to, again, this sense in the industry of being really, really compute constrained — they need to build as many data centers as possible, [and] there’s all kinds of reasons why that is proving to be challenging here on Earth, so maybe space is the answer. But I think Son makes some pretty fair points about: All this stuff we’re talking about, even if it all works — and the costs are going to be very, very serious to make it work — this is not happening for years and years and years, so this is not a solution to any immediate problem, as far the current need for data centers goes.

Kirsten Korosec: I just want to point out that SoftBank has a long history of making wild bets. I think it says something when Son comes up and asks the question that a lot of people have asked. 

I mean, there are a lot of VCs and founders [who] have been swept up into the idea of orbital data centers and it seems like suddenly everyone’s on board. When just a couple of years ago, I think, if someone had mentioned that, it would get slapped down a little bit. So I do think it’s an important part of the process that someone who has a pretty high profile is asking that question. But it is very ironic to me that he is the one asking it, because if you look at his pitch deck, they’ve thrown a lot of money at some pretty bold ideas.

Sean: WeWork! Listen, we’re going to be saying this for a lot over the next couple years. The idea of putting these things in space is going to be an interesting engineering challenge and certainly an interesting economic challenge. 

Anthony, what you said is definitely right to a certain extent. Elon Musk is a person who hates red tape and you know, there are no NIMBYs in space so of course he’s going to try and do that. 

To me, it comes down to: The business as it stands now for SpaceX, especially its launch business, is just overwhelmingly reliant on Starlink. The reason that they are 80 or 90% of the launch market globally is not just because they’ve done all these things that are better than pretty much every other launch provider around the globe, it’s also because they have Starlink that is driving up that number. If you remove Starlink from the equation, they would be closer to — I don’t know, maybe 20% or 30% of the launch market, or 40%, but it certainly wouldn’t be 90%. 

And when you talk about making a constellation of satellites — satellites that need to be replaced every few years as well —  to make up an “orbital data center,” quote unquote, you’re just guaranteeing that much more business for your launch business. And I just can’t stop myself from coming back to that point.

Kirsten: I want to really quickly say that [SpaceX’s] other big business is renting out their compute, by the way. So back to the chip conversation. We’ve come full circle.

Anthony: One of the other themes that may run through this episode is this idea of talking your own book. This is not a new phenomenon. Executives at tech companies, or any other company, what they’re predicting for the future is ultimately the future that is going to be advantageous to their business. 

But I think it’s something that’s just always worth remembering when we’re having these conversations about big AI companies, because it is this moment of incredible uncertainty, and we’re all wondering: What does the job market look like in the future? What effect is this going to have on the environment? What are the skills I need to learn? 

All these AI CEOs or AI investors, they all have thoughts on that. And it’s not that they’re wrong or that they are being deliberately misleading, but in each case, there’s an asterisk to these predictions. In Musk’s case, he’s talking about something that would be very good for SpaceX’s business. In SoftBank’s case, they are very, very heavily invested in data center projects here on Earth. Sam Altman is the other notable figure who’s rolled his eyes a bit at the orbital data center idea — and again, he and Elon Musk obviously have a long and complicated history together.

All of which is to say that there’s just no objective, impartial observers here. It’s all these people with baggage and tremendous amounts of money at stake.

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Apple Vision Pro exec is reportedly leaving for OpenAI

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Paul Meade, the Apple vice president in charge of the Vision Pro headset, is leaving the company to join OpenAI’s hardware team, according to Bloomberg’s Mark Gurman.

Meade also reportedly led the development of the AI-powered smart glasses that Apple plans to launch next year. The costly Vision Pro was not a hit, but Apple is hoping that more affordable smart glasses will help it compete with wearable devices from Meta.

Gurman frames this departure as a byproduct of John Ternus’ imminent elevation to Apple CEO, and of Ternus’ decision to shake up the hardware engineering team, which left some of the company’s vice presidents feeling like they’d been demoted.

OpenAI, meanwhile, is already working with Apple’s former chief design officer Jony Ive on an AI device that CEO Sam Altman has claimed will be more peaceful and calm than an iPhone, though reports last fall suggested the company was struggling to get the details right.

TechCrunch has reached out to Apple and OpenAI for comment.

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The fittest founder in the room got cancer. Here’s how he used AI to fight back.

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Conno Christou doesn’t leave things to chance. He tracks his sleep with a Whoop band, cross-references it with an Oura ring, and gets nearly 100 biomarkers checked every year. He had been doing the annual bloodwork for four consecutive years, following the protocols of longevity researchers like Peter Attia and Rhonda Patrick. He was optimizing his supplements, his circadian rhythm, his protein intake.

At 35, building his second company, he was as dialed-in on the latest in health research as anyone he knew. His last checkup, in 2025, was green across the board. “It was the best I’d had in years,” he says.

Then, after a workout, his arm swelled.

He didn’t think much of it at first. A week passed before he saw a doctor, who found two blood clots in his veins and scheduled surgery. But the pre-op exams changed everything. A doctor walked back into the room and told him the procedure wasn’t happening.

“We see an 11-by-11-by-8 centimeter mass behind your sternum,” the doctor said.

A biopsy confirmed what Christou had never before even contemplated. He had an aggressive, fast-growing form of non-Hodgkin’s lymphoma — a rare diagnosis affecting roughly one in 420,000 people, caused by a random genetic mutation with no connection to lifestyle, diet, or stress.

The tumor had only existed for about three months. In three more weeks, it would have reached stage four.

“Lucky in my unluckiness,” Christou told this editor this week from his home in Athens, where he lives part time. “It was only found because I went in for something else entirely.”

What followed was an education in the limits of the medical system, and in what a determined patient can do about that with tools now available.

His first oncologist, a renowned specialist, recommended the lighter of two available chemotherapy regimens. Christou booked his first infusion three days out. Then, the night before, he sought a second opinion.

That doctor didn’t hesitate. He recommended the harder regimen — continuous in-hospital infusion, cycling every three weeks across six months — citing Christou’s specific pathology. The lighter treatment carried roughly a 60% success rate for his presentation. The aggressive one brought that number to around 85%. Two world-class doctors. Diametrically opposite recommendations.

“As founders, we hold the wheel,” Christou says of the propensity of many people to accept what they are told — and why more should not. “You hear many things. You don’t have to follow the first advice.”

He didn’t opt to just follow the second advice, either. Over the next two days, he gathered 12 opinions in total — drawing on his professional network, reaching out to hematologists and oncologists in the US and abroad, calling in every favor he could. Eleven to one voted in favor of the harder path. He took it. The decision, he says, didn’t feel brave so much as logical. When the stakes are existential, you collect data.

Over six months of treatment, Christou approached chemotherapy the way he approached building a company: as a marathon of sprints, each of them with a finite cycle, each week filled with data points. He had done a mandatory 25-month military service in Cyprus at age 18 and he borrowed from that experience, too. He was going to be a good soldier, he told himself. Trust the process. Six cycles. Get through it.

He wore his Whoop throughout, and found it remarkably accurate at predicting the days his immune system would bottom out, sometimes flagging them before symptoms arrived. He kept a symptom journal using voice transcription, logging every shift, every side effect, every medication and counter-medication. He narrowed his focus to three variables: sleep, nutrition, and, first and foremost, psychology. (“It moves the needle more than anything,” said Christou. “I never asked ‘why me’ — not once. That question has no useful answer.”)

He fed all of it — blood results, scan data, wearable output, journal entries — into Claude. He’s far form alone in turning to chatbots for medical guidance. A public opinion poll released in March found that a third of American adults now use them for health information and advice. The stories accumulating online suggest that for some patients, AI is delivering what the system couldn’t.

Experts urge caution; Danielle Bitterman, clinical lead for data science and AI at Mass General Brigham, has told the New York Times in recent months that general-purpose chatbots are frequently wrong and “have not been thoroughly evaluated” for personalized diagnoses.

Christou doesn’t disagree. “It didn’t replace the doctors,” he says, but it “helped me ask the right questions.”

For a condition as rare as his — one an oncologist might see once a year — access to a model that had absorbed the full body of medical literature was, he says, simply not the same as a Google search.

That distinction proved critical at the end of treatment. His final PET scan — the imaging used to detect active disease — came back ambiguous. His oncologist began discussing a second line of therapy, potentially radiotherapy, near his heart and lungs. It was an alarming development.

Christou again did his homework. He read that for this specific lymphoma, the false-positive rate on end-of-treatment PET scans is around 60% — a statistic that still astonishes him. “It’s 2026,” he says. “Sixty percent.”

He fed all three of his PET scans and his MRI into Claude, which flagged a known but easily overlooked phenomenon: in patients under 40 recovering from this type of lymphoma, the thymus gland can reactivate after chemotherapy, showing up on imaging as what appears to be active disease. Given his age, his specific scan characteristics, the model put the probability of that explanation at roughly 90%.

He sought three more opinions. The fourth doctor confirmed it: thymus rebound. There was no active disease. No radiotherapy was needed. He was clear.

Christou is still unfolding what the last year has meant, for his health, how he works, and how he thinks about time. He built Keragon, his current company, before any of this happened; it’s an AI-powered platform that helps medical practices automate their administrative operations.

But going through the system as a patient has given him new perspective. He watched nurses and doctors buried under tasks that had nothing to do with care. He received the same chemotherapy protocol as an 80-year-old woman, the side effects managed through a cascading chain of additional drugs, each causing problems of their own. He says he’s certain that we will look back at this era of treatment and cringe.

He takes Sundays off now, mostly. He tries to be present — at lunch with friends, at home with his dog, in conversations that might once have felt like a distraction from work. A VC friend told him something years ago that he said he kept replaying during treatment: Be happy now. He says it’s among the hardest things to do and yet he finally appreciates its importance.

He says he’d be happy to talk to anyone going through something similar to share notes, compare experiences. He seems to means it.

“It’s not happening in 10 years,” he says of what AI can already do for patients willing to use it. “It’s happening today.”

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Asian AI startups launch Mythos-like models as Anthropic’s export ban drags on

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On Wednesday, Chinese cybersecurity firm 360 reportedly unveiled Tulongfeng, an AI tool it says can go head-to-head with Anthropic’s Mythos. That’s the cybersecurity-focused AI model that is reportedly so powerful, the Trump Administration has currently banned it and its more restricted version, Fable 5, from the hands of non-Americans.

Earlier the same week Sakana AI, a Tokyo-based AI startup launched Fugu, a model named after the Japanese word for blowfish. The company says this frontier AI model “stands shoulder-to-shoulder with leading models like Anthropic’s Fable 5 and Mythos Preview.” It is also designed for agents, with an ability to orchestrate access to other models though their APIs.

The two new Asian model products come as the U.S. government’s ban drags on. It’s order that prevents Anthropic from global access to Mythos and Fable occurred two weeks ago.

A spokesperson at Sakana AI told TechCrunch that release of its new model was “entirely coincidental,” yet that hasn’t stopped it from capitalizing on the moment. It’s website advertises “delivering frontier capability without the risk of export controls.”

“Sakana Fugu is something we have been building since last year — the research behind it was presented at ICLR this spring, and it reflects an approach that is central to how we deliver frontier-level value at Sakana AI. We were confident in the product on its own merits; the timing simply happened to coincide with a moment that brought it more attention than we expected,” the spokesperson said about launching during the Mythos/Fable export ban.

Sakana, co-founded in 2023 by former Google researchers Ren Ito,  Llion Jones and David Ha, makes affordable generative AI models that work well with small datasets and are optimized for the Japanese language and culture.

While the company is targeting Fugu at Japanese businesses and government agencies looking to reduce their exposure to tightening export controls, it isn’t yet proclaiming a lasting shift away from U.S. AI in Asia.

“U.S. models remain important to Asia,” the spokesperson said, a view consistent with remarks co-founder Ren Ito made at the G7 summit in Evian last week, where AI access and export controls were one of the central topics. “We’d characterize the current moment in those terms rather than as a permanent realignment toward any one set of players.”

Sakana co-founder Ren Ito elaborated on that view in an op-ed published in the Project Syndicate last week. He urged the US federal government, that consider that its “first priority should be to preserve access,” for America’s closest allies, and argued that “AI should not become a technology that is hoarded; it should be one that is developed together.”

David Ha, co-founder and CEO of Sakana, described Fugu as more than just a land grab during a vulnerable moment for a US competitors. It is designed to coordinate agent usage among many models.

“Orchestration Models are the next frontier, beyond bigger models,” he wrote on X. Relying on a single provider for national infrastructure, he argued, is a risk the recent export controls made impossible to ignore.

“Access to top models can disappear overnight,” he wrote. “Collective intelligence is the practical hedge against this concentration of power.”

While Tokyo-based Sakana positioned Fugu as a hedge strategy, a way to preserve access to frontier AI, not replace it, China’s 360 wasn’t hedging.

The Chinese firm reportedly unveiled two AI security tools. Tulongfeng is designed to automatically discover software vulnerabilities, and Yitianzhen is built to automate cyber defence and incident response.

The product launch, however, came with a message. According to Reuters, 360’s founder Zhou Hongyi described vulnerability-finding AI as a national strategic asset, and flagged what he called the risk of “one-way transparency”, a situation in which some actors could access advanced vulnerability-detection capabilities while others could not.

Anthropic had been on a historic growth trajectory. The US AI lab said its run-rate revenue crossed $47 billion in May 2026. How much of that depends on Asian enterprise customers is not publicly known.

But in the weeks since the export order took effect, at least two companies, one in Tokyo, one in Beijing, have stepped into the space it left behind. Even if US companies could win back trust should this ban ever end, local alternatives, trained to better understand local language and nuance, are already filling the gap.

360 did not respond to a request for comment.

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