Starcloud, an innovative startup specializing in satellites capable of performing AI inference in orbit, has significantly bolstered its financial standing. The company recently informed TechCrunch that it secured an additional $250 million, extending its Series A funding round which initially raised $170 million in March. This substantial capital injection now values the company at $2.3 billion.
This fresh infusion of capital is earmarked for critical strategic initiatives, including the establishment of a larger manufacturing facility and the advancement of its most ambitious orbital data center spacecraft to date, Starcloud-3. This advanced spacecraft is slated for deployment aboard SpaceX’s highly anticipated Starship rocket. Furthermore, CEO Philip Johnston is proactively accumulating funds to guarantee sufficient launch capacity for his satellites amidst an increasingly constrained market for rocket transportation.
Johnston emphasized the company's foresight regarding future launch requirements, stating to TechCrunch, “We can see what’s coming—we’re going to need to book an enormous amount of launch.” Reflecting this ambition, Starcloud has already sought and received permission from the FCC to operate a vast constellation of 88,000 spacecraft.
He further elaborated on the urgency of securing future launch services: “As soon as we can, we want to get under contract with things like Starship.” Johnston highlighted the escalating costs associated with securing launch capacity, noting, “One of the biggest costs is now on securing your launch capacity….launch is pretty constrained right now because [SpaceX’s] Falcon 9 program is scheduled to end in 2028.”
Indeed, launch expenses have long represented one of the most formidable challenges for startups in the orbital data center sector, prompting some to even embark on developing their own rocket systems.
The situation is further complicated by SpaceX's strategic shift to phase out its reliable Falcon 9 vehicle in favor of the much larger, though still unproven, Starship rocket. This transition introduces considerable planning difficulties for satellite operators, especially given that competing launch vehicles such as Blue Origin’s New Glenn and ULA’s Vulcan are not yet flying regularly, and new entrants like Rocket Lab’s Neutron remain in development.
In the near term, Starcloud is concentrating on launching two of its next-generation 8 kW compute satellites, designated Starcloud-2, via rideshare flights in 2027. These satellites are designed to execute orbital inference tasks for a diverse client base, including various U.S. government agencies. Looking ahead, Starcloud is exploring options for purchasing a dedicated Falcon 9 launch for additional spacecraft and forging contracts with other providers to support its expanding mission portfolio.
Ultimately, Starcloud's long-term vision is intrinsically linked to the transformative potential of SpaceX’s Starship to dramatically reduce launch costs. This cost efficiency is crucial for establishing an orbital inference layer robust enough to rival terrestrial data centers. Johnston expressed unwavering confidence in SpaceX's ability to demonstrate the rapid and frequent reusability of the world's most powerful rocket.
However, recent announcements from SpaceX CEO Elon Musk indicated a delay in the company's attempt to catch a returning Starship rocket for several months, with the first re-flight of the vehicle now anticipated in late 2026 or early 2027.
Acknowledging potential future hurdles, Johnston stated, “Obviously if we can’t book any SpaceX launch capacity in 2029, that will be that will be challenging for us.”
The recent funding extension for Starcloud was spearheaded by Manhattan West Ventures, with notable participation from industry giants Nvidia and Cisco. A source close to the deal revealed that Nvidia contributed $25 million to Starcloud. Other key investors included Benchmark, EQT, Soma, NFX, 776, Cedar Capital, Goanna Capital, and Standard Capital.
Johnston highlighted the investment from Nvidia as a significant validation of Starcloud’s competitive edge within the nascent space compute industry. Starcloud is currently the only known company successfully operating a terrestrial Nvidia H100 data center GPU in orbit, and holds the distinction of being the first to train a model using it. This contrasts with most other space GPUs, which are typically optimized for edge processing. Starcloud is actively sharing its invaluable orbital data and insights with Nvidia as the chipmaker proceeds with developing its first purpose-built GPU for space, the Vera Rubin Space-1 chip.
Explaining the timing of the investment, Johnston told TechCrunch, “The reason they’ve chosen to do this investment now is because of all of this data that we got from Starcloud One. They, more than any other VC, did way more technical duty on this than anybody else.”
While the space-ready Vera Rubin Space-1 chip is still in development, Starcloud aims to launch it into orbit by late 2028. Johnston noted that his engineering teams are meticulously focusing on critical design elements, including the intricate relationship between the chip's operating temperature and the necessary size of its heat-dissipating radiators, the optimal placement of radiation shielding, and the rigorous ruggedization required for the chips to withstand the extreme forces of a rocket launch.
Currently employing 25 individuals and actively expanding its workforce, Starcloud is establishing production lines within a sprawling 100,000 square-foot facility located in Woodinville, Washington. This strategic location places it in close proximity to where SpaceX and Amazon are developing satellites for their respective communications networks.
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