No. For one, things in space are under the jurisdiction of the country they were launched from. For another, it's people that do crimes, not satellites or LLMs, and the people involved in making CSAM are all on Earth.

AFAIK he can do whatever he wants in space, but CSAM is still illegal to view or even download in most (all?) countries of the world. So unless the degenerates also move out into space (which I'm sure they're eager to do), it wouldn't really ease the legal situation here on Earth.

Ground stations would be the major problem.

Maybe if Elon launched himself and the dev team into orbit and didn't use any ground stations and just Starlink terminals he could start getting into legal loopholes.

At that point, country could just sanction the company, so that it's illegal for its citizens to pay them any money. Seems like a standard thing to do to a company that breaks laws and that you cannot otherwise reach.

So my floating data center in international waters idea has potential investors?

Remember that he wants to make X a bank. An orbital tax haven.

But seriously, I think legally satellites are under the jurisdiction of the country they were launched from.

Well, offshore launches are already a thing.

Or he could just buy a small island in the Carribean. There's one in particular that is available.

That island is part of the US. Technically SpaceX technology cannot be exported to other countries but laws are fake so...