Yeah, I have no doubt that it's possible to put GPU servers in space. The Starlink satellites are servers in space. The question is whether it's even remotely profitable to do this for AI training/inference servers.
The same way that xAI has compute on the ground and there's such demand that the compute exists so it will be sold. I think SpaceX can conceivably sell the space compute easily. This goes with the business strategy of Elon which is just sell services to himself. He sells rocket launches to himself with the excuse of creating a space datacenter. The same way he sells cybertrucks to spacex because the public won't buy them. I'm pretty confident it's definitely cheaper to put the compute in Texas, but might be viable enough to sell himself rocket launches and make his company worth more to leverage for more ventures. I'm not a business person I don't really get how it's all so valuable if the only demand is itself.