Key facts
- Starcloud raised $250 million in an extension of its Series A funding round.
- The company is valued at $2.3 billion post-extension.
- Funds will be used for a larger manufacturing facility and advancing the Starcloud-3 orbital data center spacecraft.
- Starcloud aims to secure launch capacity due to market constraints, particularly with SpaceX's Falcon 9 program ending in 2028.
- Nvidia participated in the funding round with a $25 million investment.
- Starcloud is operating a Nvidia H100 GPU in orbit.
Starcloud, a startup focused on deploying satellites capable of performing artificial intelligence inference in orbit, has secured an additional $250 million as an extension to its Series A funding round, which initially raised $170 million in March. This extension brings the company's valuation to $2.3 billion.
The newly acquired capital is earmarked for expanding its manufacturing capabilities and advancing the development of its largest orbital data center spacecraft, Starcloud-3. This spacecraft is slated to launch on SpaceX's upcoming Starship rocket.
CEO Philip Johnston highlighted the strategic importance of securing launch capacity, noting that the market for rocket transportation is tightening. Starcloud has received FCC authorization to operate up to 88,000 spacecraft and is actively seeking contracts, including with SpaceX's Starship, to ensure future launch availability. Johnston pointed out that the Falcon 9 program is scheduled to conclude in 2028, increasing the difficulty of planning for satellite operators as competing vehicles like New Glenn and Vulcan are not yet flying regularly, and new ones like Neutron are not operational.
Initially, Starcloud plans to deploy two new-generation 8 kW compute satellites, known as Starcloud-2, on rideshare flights in 2027 for orbital inference tasks, including for U.S. government agencies. The company is also exploring dedicated Falcon 9 launches and contracts with other providers to support its future mission requirements.
Starcloud's long-term vision hinges on the potential of SpaceX's Starship to significantly reduce launch costs, enabling the creation of an orbital inference layer that can rival terrestrial data centers. Johnston expressed confidence in SpaceX's ability to achieve rapid and frequent reuse of the Starship rocket. However, he acknowledged that securing SpaceX launch capacity for 2029 would be challenging if not achieved.
The funding extension saw participation from Manhattan West Ventures, Nvidia, and Cisco, among others. Nvidia's $25 million investment is seen as a significant endorsement, given Starcloud's unique position as the operator of a Nvidia H100 terrestrial data center GPU in orbit and its pioneering work in training models using it. Starcloud is collaborating with Nvidia on the development of the Vera Rubin Space-1 chip, a purpose-built GPU for space, expected to launch in late 2028. Key design considerations for this chip include thermal management, radiation shielding, and ruggedization for launch survivability.
Starcloud, currently employing 25 people, is establishing production lines at a 100,000-square-foot facility in Woodinville, Washington.