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Live Trading News > Blog > AI > Generative AI > The Evolving Space Race: AI and Quantum Computing
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The Evolving Space Race: AI and Quantum Computing

Shayne Heffernan Ph.D.
Last updated: May 25, 2025 4:56 am
Shayne Heffernan Ph.D.
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The Evolving Space Race: AI and Quantum Computing as the New Battleground
By Shayne Heffernan
May 25, 2025

The space race has transformed dramatically by 2025, shifting from a contest of physical milestones to a high-stakes battle over technological supremacy. Gone are the days when landing on the moon or launching a space station defined victory. Today, artificial intelligence (AI) and quantum computing are the new frontiers, driving a competition that pits global powers like China and the United States against each other, with emerging players like India also vying for a stake. China’s recent launch of the “Three-Body Computing Constellation” on May 14, 2025, underscores this shift, highlighting how these technologies are redefining space as a domain of data, computation, and strategic dominance.

A New Era in the Space Race

The original space race, a Cold War rivalry between the US and the Soviet Union, was about symbolic achievements—think the 1969 Apollo 11 moon landing. By the 2000s, collaboration took over, with the International Space Station showcasing global unity. But in 2025, the race has pivoted to economic and military advantage. SpaceX has slashed launch costs to $2,600 per kilogram with its reusable Falcon 9, opening space to more players. Nations now focus on satellites for communication, navigation, and surveillance, with over 7,000 active satellites in orbit, including SpaceX’s 4,000-strong Starlink network.

The real battle isn’t about who can launch the most satellites—it’s about what those satellites can do. AI and quantum computing are turning space into a platform for data processing and secure communication, critical for everything from global internet access to military operations. This isn’t about planting flags anymore; it’s about controlling the digital infrastructure of the future.

AI: Powering the Orbital Brain

AI is revolutionizing space operations by enabling real-time data processing and autonomy. China’s Three-Body Computing Constellation, with its first 12 of 2,800 planned satellites, is a bold move. Each satellite delivers 744 trillion operations per second (TOPS), and the initial batch already achieves 5 peta operations per second (POPS), aiming for 1,000 POPS when complete. These satellites, linked by 100-gigabit-per-second laser communications, run 8-billion-parameter AI models to analyze satellite imagery, climate data, and more. Applications include disaster response and scientific research, all processed in orbit to cut latency and energy costs.

The US is keeping pace. NASA’s Perseverance rover on Mars uses AI to navigate autonomously, covering 200 meters daily, while the US Space Force employs AI to track 40,000 orbital objects, mitigating collision risks. Starlink uses AI to optimize bandwidth for its 1.5 million users as of early 2025. But China’s space-based computing approach, leveraging solar power and space’s natural cooling, could give it an edge in real-time applications like global surveillance or rapid disaster response—areas where the US has historically led.

Quantum Computing: The Ultimate Advantage

Quantum computing, though not yet fully mature, promises to redefine space technology with its potential for exponential computational power and secure communications. China has been a pioneer here, launching the Micius satellite in 2016 to demonstrate quantum key distribution (QKD) over 1,200 kilometers. By 2025, China is using QKD to secure communications for its Three-Body satellites, offering unbreakable encryption for sensitive data—a game-changer for military and financial applications.

The US is advancing rapidly. IBM and Google achieved quantum supremacy in 2024 with 100-qubit systems, and DARPA is funding space-based quantum networks. The US Space Force is exploring quantum sensors for GPS-independent navigation, crucial if adversaries disrupt traditional systems. NASA is eyeing quantum computing to optimize mission trajectories, solving equations that classical computers struggle with.

India is also in the game. ISRO partnered with the Raman Research Institute in 2024 to develop quantum cryptography for satellites, aiming to secure its 80-strong constellation. This reflects a broader trend: quantum tech is becoming a strategic asset in space, where secure, high-speed communication is non-negotiable.

The Stakes of the New Battleground

This AI- and quantum-driven space race is about more than technology—it’s about power. Controlling space-based computing gives nations a strategic edge in data processing, surveillance, and military operations. China’s Three-Body project could challenge US dominance in space infrastructure, raising concerns about potential military uses, such as enhanced intelligence gathering. The US, meanwhile, is doubling down on AI and quantum tech to maintain its lead, while India’s investments signal its ambition to be a major player.

The economic stakes are equally high. Space-based AI can drive industries like agriculture, logistics, and disaster management by providing real-time insights. Quantum-secured communications could revolutionize global finance, ensuring secure transactions in an increasingly digital world. But with these advancements come risks: space militarization, data privacy concerns, and the potential for a new digital divide if smaller nations can’t keep up.

In 2025, the space race is no longer about who can go the farthest—it’s about who can compute the fastest and communicate the safest. AI and quantum computing are the new battlegrounds, and the winners will shape the future of space, and by extension, the future of global power dynamics. As China, the US, and others race to dominate this frontier, the question isn’t just who will lead—it’s what kind of world they’ll create in the process.

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By Shayne Heffernan Ph.D.
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Shayne Heffernan Ph.D. Economist at Knightsbridge holds a Ph.D. in Economics and brings with him over 40 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Crypto, Mining, Shipping, Technology and Financial Services.
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