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One giant leap for AI: Companies rethink how and where data is processed

by Chief Editor April 28, 2026
written by Chief Editor

The Orbital Edge: Why the Future of AI is Moving into Space

For decades, satellites have functioned primarily as “bent pipes”—collecting data and beaming it back to Earth for processing. However, as the AI-driven data economy expands, this model is hitting a wall. The sheer volume of data produced by modern earth observation satellites is overwhelming available bandwidth, creating a bottleneck that slows down real-time decision-making.

The solution? Moving the “brain” of the operation into orbit. By implementing edge computing in space, the industry is shifting toward orbital data centers that process information at the source, transmitting only the most critical insights back to ground stations.

Did you know? High-resolution imaging, particularly hyperspectral imaging, creates such dense spectral data that transmitting every byte to Earth is often impractical. This makes in-orbit “triage” a necessity rather than a luxury.

Solving the Latency Crisis with Space-Based AI

In sectors where seconds matter—such as disaster response, border surveillance, and defense—waiting for data to travel from a satellite to a ground station and back can be a critical failure. Processing data at the edge in space allows for quicker insights and enhanced mission autonomy.

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Anirudh Sharma, CEO of Digantara, notes that edge computing is essential for reducing downlink and information latency. Beyond simple data transmission, this capability enables onboard inference. For example, satellites within a constellation can exchange data via inter-satellite links to maintain the constellation and avoid collisions without needing a command from Earth.

This autonomy becomes even more vital in higher orbits, such as Geostationary (GEO) and beyond. In these environments, “ground-in-the-loop” decision cycles are extremely demanding, making onboard autonomy the primary infrastructure for effective decision-making.

Turning Satellites into Intelligent Nodes

The integration of machine learning (ML) is transforming satellites from passive sensors into intelligent nodes. AI models now allow satellites to prioritize, compress, and interpret high-value data despite the strict power and compute limitations of the space environment.

Selective Transmission and Intelligent Filtering

The goal is not to process everything in orbit, but to make smarter decisions about what actually needs to be sent home. Awais Ahmed, founder and CEO of Pixxel, explains that the real value lies in “filtering, intelligent compression, or prioritising what to transmit first.”

Selective Transmission and Intelligent Filtering
Moving Beyond Intelligent

Pixxel already utilizes these techniques for cloud detection and compression to optimize how data is transmitted. By moving intelligence closer to the source, companies can improve responsiveness even as still relying on ground infrastructure for deeper, large-scale model execution.

Data-Centre-Class Computing in Orbit

The ambition extends beyond simple filtering. The Spaceborne Computer programme by Hewlett Packard Enterprise (HPE) demonstrates that data-centre-class computing can be extended into space.

Data Giants Aren't Dinosaurs: Experian's AI Leap

HPE’s Spaceborne Computer-2, currently aboard the International Space Station, integrates high-performance computing (HPC) and AI using commercial off-the-shelf hardware. Ryan D’Souza, HPE’s country manager for AI and HPC, suggests that for deep-space or lunar missions—such as those led by the Indian Space Research Organisation (ISRO)—near real-time data analysis at the edge can significantly boost operational efficiency.

Pro Tip: When evaluating space-compute architecture, look for “full-stack” integration. As Krishna Teja Penamakuru of Dhruva Space suggests, compute should be a strategic decision tied to the entire data pipeline, from onboard systems to ground infrastructure, to ensure true data sovereignty.

Strategic Applications: Beyond Earth Observation

The move toward orbital processing is creating a ripple effect across multiple global industries:

  • Defence and Intelligence (ISR): Real-time tracking of adversary satellite movements and space debris. Digantara, for instance, aims to deploy a constellation of 15 satellites for space domain awareness by 2027.
  • Climate and Agriculture: Rapid monitoring of crop health or climate shifts without the lag of traditional downlink cycles.
  • Disaster Management: Immediate identification of flood or fire zones to trigger emergency responses in minutes rather than hours.

Pawan Kumar Chandana, CEO of Skyroot Aerospace, emphasizes that because space compute qualifies as critical infrastructure, the ability to process data directly in orbit is a matter of national and operational sovereignty.

The Engineering Hurdle: Power, Thermal, and Reliability

Despite the potential, building a data center in a vacuum is not simple. Engineers face a “trilemma” of constraints: power, thermal management, and reliability.

The Engineering Hurdle: Power, Thermal, and Reliability
Anirudh Sharma Processing

AI inference in orbit must operate within incredibly tight margins. Processing generates heat, and in the vacuum of space, dissipating that heat is a major challenge. The reliability of onboard analysis is paramount; as Anirudh Sharma points out, ensuring there are no “false positives” is a critical constraint for high-stakes decision-making.

most experts agree that space-based computing will complement, rather than replace, terrestrial infrastructure. While the “first-order” decisions (filtering and prioritizing) happen in orbit, the “deep analytics” will remain grounded.

Frequently Asked Questions

What is edge computing in space?
We see the practice of processing data directly on a satellite (the “edge” of the network) rather than sending all raw data to a ground station for analysis.

Why can’t we just increase satellite bandwidth?
Bandwidth is a finite resource. The volume of data generated by modern high-resolution and hyperspectral sensors is growing faster than our capacity to transmit it, creating a “downlink bottleneck.”

Will orbital data centers replace ground-based servers?
No. They are designed to handle immediate, first-order decisions and data triage. Large-scale data aggregation and complex model execution will still require the power and cooling of Earth-based data centers.

Which industries benefit most from space-based AI?
Defence, intelligence, disaster response, and climate monitoring benefit most because they require low-latency, real-time information to take action.

Join the Conversation

Do you think the future of AI lies in the cloud or in the stars? How will orbital data centers change the way we monitor our planet?

Share your thoughts in the comments below or subscribe to our newsletter for the latest updates on space technology!

April 28, 2026 0 comments
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Business

Hewlett Packard Enterprise Rides Generative AI Server Growth And Valuation Debate

by Chief Editor April 26, 2026
written by Chief Editor

The Shift Toward AI-Native Infrastructure

The enterprise technology landscape is undergoing a fundamental transformation. Hewlett Packard Enterprise (HPE) has positioned itself as a central figure in this pivot, moving beyond traditional hardware to lead the rapidly expanding generative AI server industry.

As organizations scale up their infrastructure to handle intensive generative AI workloads, the demand for specialized, AI-native portfolios has surged. This isn’t just about adding more power; it’s about operationalizing deep learning and machine learning (ML) applications across the entire business process.

Did you grasp? According to Neil MacDonald, EVP at HPE, the shift to generative AI is so transformative that companies will either be powered by the technology or risk being made obsolete by competitors who are.

The “Adopt or Die” Imperative

The current trend suggests that every business process involving the creation or generation of content is being reimagined. From customer call centers to internal support, the integration of virtual assistants is becoming a standard for driving productivity and efficiency.

The "Adopt or Die" Imperative
Imperative The Strategic Alliances Synergy One

For enterprises, the challenge is no longer whether to adopt AI, but how to do so without being overwhelmed by complexity. This has created a massive opportunity for providers who can simplify the journey from research to reality.

Strategic Alliances: The HPE and NVIDIA Synergy

One of the most critical trends in AI infrastructure is the move toward co-developed solutions. HPE has strengthened its market position through a deep partnership with NVIDIA, resulting in the “NVIDIA AI Computing by HPE” portfolio.

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These co-developed solutions are designed to accelerate the adoption of generative AI, allowing businesses to deploy high-performance computing (HPC) and AI capabilities more rapidly. By combining NVIDIA’s processing power with HPE’s enterprise-grade infrastructure, the duo is targeting the most demanding GenAI tuning and inference workloads.

Pro Tip: When evaluating AI stocks, look beyond the hardware. The real value often lies in the “ecosystem” — the partnerships between chipmakers like NVIDIA and infrastructure providers like HPE.

Scaling AI with Flexible Economics

A significant barrier to AI adoption has been the massive upfront cost of infrastructure. To counter this, HPE is leveraging its GreenLake platform.

By offering enterprise computing solutions for generative AI through a flexible, scalable pay-per-use model, HPE is effectively lowering the entry barrier for companies. This “as-a-service” approach allows enterprises to scale their AI capabilities in alignment with their actual usage and growth, rather than guessing their capacity needs years in advance.

Analyzing the Market Sentiment and Valuation

Investors are reacting strongly to HPE’s AI pivot. The stock has shown significant momentum, with a 1-year return of 77.8% and a notable 30-day return of 17.6%, reflecting increased market interest in the generative AI server story.

Analyzing the Market Sentiment and Valuation
Questions Wall

However, the valuation remains a point of debate among analysts. Even as the stock has traded around $28.16—slightly above some analyst targets of $26.43—other models suggest the company remains undervalued, with some estimates placing the fair value higher.

Growth Drivers vs. Risk Factors

The bullish case for HPE is supported by hefty new AI system orders, stronger non-GAAP profitability and an upbeat earnings outlook for 2026. The momentum is evident in the five-year total shareholder return of 103.4% to 139.37% depending on the metric used.

Conversely, cautious investors point to several red flags that could temper this growth:

  • Debt Levels: Concerns regarding high debt loads.
  • Dividends: Questions surrounding dividend coverage.
  • Insider Activity: Recent reports of insider selling.
Reader Question: Does the AI growth narrative outweigh the debt risks? This is the central question currently dividing Wall Street analysts, with price targets ranging from a bearish $19.0 to a bullish $30.0.

Frequently Asked Questions

What is the “AI-native portfolio” from HPE?
It is a comprehensive set of updates designed to advance the operationalization of generative AI, deep learning, and machine learning applications for enterprises.

How does HPE GreenLake assist with AI adoption?
GreenLake provides a pay-per-use model, allowing companies to access AI computing power without massive upfront capital expenditures.

Who is HPE’s primary partner for AI computing?
HPE works closely with NVIDIA to create co-developed solutions that help enterprises accelerate their generative AI adoption.

Is HPE currently considered undervalued?
It depends on the model. Some analyst targets place it near fair value, while Simply Wall St has flagged it as trading below its estimated fair value.

Join the Conversation

Do you think the generative AI boom is enough to offset HPE’s debt concerns, or is the market overvaluing the AI pivot? Share your thoughts in the comments below or subscribe to our newsletter for more deep dives into enterprise tech trends!

April 26, 2026 0 comments
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