Sorry but wouldn’t space based DCs need radiation hardened parts which are typically a few generations behind SoTA? Do the centers deploy massive shields to protect the electronics?

I haven't heard of that being a problem for Starlink, whatever they've done there seems to be working. The Orbital AI would be at a higher orbit but still within LEO which reduces the radiation. I wonder if occasional bit flips even matter for typical AI calculations. Quantization seems to suggest a lot of the lower bits aren't all that important. Either way SpaceX has already had success building systems with commercial-off-the-shelf products in space.

To me the biggest problem of the system is the dependence on launch cost. The more launch cost can be lowered the more viable the system is and the more options there are for solving every problem. But IMO the reason Musk is building this system is to lower launch cost. He needs a project that can fund a high volume of launches and create economies of scale to lower launch cost, the way that Starlink did for Falcon 9.