Starcloud raises $250 million to build AI data centers in orbit

In short: Starcloud says it raised an extra $250 million to build satellites that run AI in orbit, and to secure rocket launches that are becoming harder to get.

What happened

Starcloud, a startup, told TechCrunch it added a $250 million extension to its earlier funding round. The company says this brings its valuation to $2.3 billion.

Starcloud is building “orbital data centers,” which are satellites designed to do the kind of computing normally done in big server buildings on Earth. A key job it focuses on is AI inference, which means using an AI model to make a decision or a prediction (like asking a chatbot a question and getting an answer).

The company says the new money will help it open a larger factory and move forward on a larger spacecraft called Starcloud-3, which it hopes to launch on SpaceX’s Starship rocket. Starcloud’s CEO, Philip Johnston, said the company is also raising money to lock in launch contracts because rocket transportation is tight. Starcloud has asked the FCC for permission to operate 88,000 spacecraft.

Starcloud said it plans to launch two newer “compute satellites” in 2027 on rideshare flights (like carpooling, but for satellites sharing one rocket trip). Customers include US government agencies.

The funding extension was led by Manhattan West Ventures. It also included Nvidia and Cisco, and a person familiar with the deal told TechCrunch that Nvidia invested $25 million.

Why it matters

If companies want computers in space, they still need rockets to get them there. With some rockets ending service soon and others not flying regularly yet, startups like Starcloud may have to spend more time and money just booking a ride to orbit.

Source: TechCrunch AI