China accelerates AI satellite network amid rising space competition
China is advancing a large-scale effort to build an orbital computing network powered by artificial intelligence, while expanding its military presence in space. The dual-track strategy combines commercial innovation with strategic ambitions that analysts say could challenge existing space leadership within the next two decades.
A Chengdu-based company, Adaspace Technology, is leading a project known as “Star Compute.” The initiative aims to deploy a constellation of 2,800 satellites designed to process AI workloads directly in orbit. According to project details, 2,400 satellites will handle inference tasks, while 400 will focus on training models. These satellites will operate at altitudes between 500 and 1,000 kilometers, forming a distributed computing system in space. The first batch was launched in May 2025, with additional deployments planned later this year. The company expects initial commercial operations by 2030 and full completion by 2035.
The system relies on laser-based communication links between satellites and ground stations, as well as inter-satellite connections. The network is designed to deliver computing power reaching hundreds of thousands of petaflops for inference and up to one million petaflops for training. Recent tests demonstrated the use of orbital computing to control a ground-based robot, marking a technical milestone. Parallel efforts are underway through another initiative led by Zhejiang Lab, which has already launched 12 computing satellites and plans to expand to 100 by 2027.
At the same time, the United States has raised concerns over China’s broader space expansion. A recent strategic outlook presented at a major aerospace forum projects a scenario in which space becomes a contested operational domain by 2040. The report estimates that China could expand its satellite fleet to around 21,000 units, up from roughly 1,600 today. It outlines the potential deployment of anti-satellite missiles, directed energy systems, and AI-enabled orbital platforms capable of disrupting or disabling rival assets.
US officials emphasize that the scenario reflects trend analysis rather than direct intelligence forecasts. However, the rapid growth of China’s space capabilities remains a key concern. Military officials note that the number of Chinese satellites has increased sharply since 2015, with no sign of slowing. They warn that attacks on space-based services could occur without warning and have significant impact on civilian and military systems that rely on orbital infrastructure.
China’s national space program continues to expand alongside these developments. Planned missions include asteroid exploration through Tianwen-2, a new crewed mission under the Shenzhou program, and further testing of reusable launch vehicles. The country is also developing two additional mega-constellations expected to include tens of thousands of satellites combined.
The integration of commercial AI infrastructure with military modernization reflects a broader strategic objective. China aims to establish itself as a leading technological power by the early 2030s and to achieve parity or dominance across key domains by mid-century. The rapid evolution of its space capabilities is likely to intensify competition and reshape the balance of power in orbit.
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