If anything, considering this + limited satellite lifetime, it almost looks like a ploy to deal with the current issue of warehouses full of GPUs and the questions about overbuild with just the currently actively installed GPUs (which is a fraction of the total that Nvidia has promised to deliver within a year or two).

Just shoot it into space where it's all inaccessible and will burn out within 5 years, forcing a continuous replacement scheme and steady contracts with Nvidia and the like to deliver the next generation at the exact same scale, forever

I believe that a modern GPU will burn out immediately. Chips for space are using ancient process nodes with chunky sized components so that they are more resilient to radiation. Deploying a 3nm process into space seems unlikely to work unless you surround it with a foot of lead.

Reminds me of the proposal to deorbit end of life satellites by puncturing their lithium batteries :)

The physics of consuming bits of old chip in an inefficient plasma thruster probably work, as do the crawling robots and crushers needed for orbital disassembly, but we're a few years away yet. And whilst on orbit chip replacement is much more mass efficient than replacing the whole spacecraft, radiators and all, it's also a nontrivial undertaking

This brings a whole new dimension to that joke about how our software used to leak memory, then file descriptors, then ec2 instances, and soon we'll be leaking entire data centers. So essentially you're saying - let's convert this into a feature.