Orbital raises $5M seed round to build data centers in space

In short: Orbital raised $5 million to start testing “data centers in space,” using satellites to run AI computer chips.

What happened

Orbital, a new company led by Euwyn Poon, announced a $5 million seed funding round after joining Andreessen Horowitz’s Speedrun startup program, according to TechCrunch. Poon previously founded the e-scooter company Spin, which was sold to Ford.

Orbital’s basic idea is to put powerful computer chips on satellites and use them like remote data centers. A data center is a building full of computers that runs apps and online services. Orbital wants to do similar work in orbit, where satellites can get constant sunlight for power.

The company says the biggest obstacle is the cost of launching equipment into space. Orbital is betting that SpaceX’s Starship rocket will eventually lower launch costs enough to make this practical. For now, Orbital plans a demo flight that will put an Nvidia Blackwell chip on a partner satellite to test protection from radiation and ways to handle heat, two problems that are tougher in space.

Orbital says its long-term goal is to deploy 10,000 satellites for computing. It also plans to start earning revenue earlier by doing smaller “inference” jobs, meaning running AI models to produce answers (like using a calculator, not building the calculator).

Why it matters

AI services need a lot of computing power, and building data centers on Earth can be slow and controversial because of electricity use and local permitting. Space-based computing could become another option, but it depends on cheaper rockets and proof that the hardware can survive and operate reliably in orbit.

Source: TechCrunch AI