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.
Musk is deliberately creating a business that needs high volume low cost launch services because in order to get low cost launch high volume is needed, and in order to get high volume a customer is needed. In the same way that Starlink launches were used to create the Falcon 9 economies of scale, the orbital AI will be used to create the Starship economies of scale. He also wants to bet the whole company on this which creates pressure to deliver and not just coast on what they've already accomplished. There are a bunch of related high risk bets but they ultimately connect back to bringing Mars within reach with frequent low cost launch capability.
To remove heat by radiation there's a big benefit to running the GPUs hotter as the radiation will be proportional to the fourth power of temperature. This resource is using 85 deg C versus 60 deg C for OP which will improve cooling performance.
If Nvidia/SpaceX can make the chips run at a higher temperature that would help a lot although I assume it would have already been done if it were possible. Another option is to add a heat pump to raise radiator temperature if the smaller radiator mass can pay for the heat pump mass.
On judging vs. making, also someone has to take time away from development to do code review. If the code being reviewed is written by someone who is involved and interested then at least there's a benefit to training and consensus building in discussing the code and the project in the review phase. The time and energy of developers who are qualified to review is quite possibly the bottleneck on development speed too so wasting review time will slow down development.
For AI generated code if previous PRs aren't loaded into context then there's no lasting benefit from the time taken to review and it's blank slate each time. I think ultimately it can be solved with workflow changes (i.e. AI written code should be attributed to the AI in VCS, the full trace and manual edits should be visible for review, all human input prompts to the AI should be browsable during review without having scroll 10k lines of AI reasoning.)
I think the marketing differentiation works best when it is driven by factors that are hard to measure and control, but that are perceived as high value, like flavour and style. When buying bottled water, the water is free, you're buying the bottle, the refrigeration, then real-estate & inventory space, and you can compare it on those dimensions, but if you are sensitive to the taste that can override the other factors. With cola it is much much stronger because the taste is more intense and your body is conditioned to link it to the sugar and caffeine hitting the bloodstream which gives you that immediate Pavlovian response. But taking something low-cost and using human psychology to assign a high value is how marketing makes profit. As opposed to the prosaic side of marketing where you're just letting people know you exist.
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.