Artificial intelligence (AI) is now a determining factor in the development of outer-space operations. The national security, intelligence and early warning systems are currently under the influence of autonomous satellites, constellations of sensors, and deep-learning algorithms. However, the existing legal framework, which is based on the Outer Space Treaty of 1967, is insufficient to support the transparency and autonomy of AI. The article analyzes the challenges of sovereignty and accountability faced by states due to algorithmic decision-making. It reclaims the legal framework of space intelligence networks by proposing a stratified structure of sovereignty, along with physical, algorithmic, and institutional novelty, such as a Space Intelligence Authority. Based on comparative space law, AI governance theory, and normative fairness analysis, this paper proposes a design of a regulatory framework for space-based intelligence that not only pertains to the control of the territory but also addresses the algorithmic and AI-based decision-making in space.