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Starcloud builds megawatt-scale data centers in low Earth orbit and leases GPU compute, storage, and data processing capacity to customers. Satellites carry large GPU clusters and storage, with power from onboard solar panels and cooling in vacuum; customers access resources over the network and pay by usage. Unlike terrestrial cloud providers, Starcloud avoids land, water, and permitting bottlenecks by operating in orbit, and benefits from space-based energy and cooling to reduce costs and emissions. Its goal is to extend digital compute beyond Earth’s surface, enabling scalable, sustainable AI workloads through orbital data centers.
Industries
Data & Analytics
Energy
Enterprise Software
Aerospace
Company Size
11-50
Company Stage
Series A
Total Funding
$194M
Headquarters
Redmond, Washington
Founded
2024
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Starcloud, a Redmond startup that went through Y Combinator in summer 2024, has raised $170 million in a Series A at a $1.1 billion valuation. The company became the first to run an Nvidia H100 GPU in orbit in November 2025, launching its 60-kilogram Starcloud-1 satellite. The company has filed with the FCC for an 88,000-satellite constellation and plans its next launch for October 2026, carrying multiple H100 chips and Nvidia's Blackwell hardware. CEO Philip Johnston positions Starcloud as infrastructure rather than cloud computing, initially targeting military and government customers before expanding to major cloud providers. Competition is intensifying, with Google planning prototype satellites by 2027, SpaceX filing for up to one million satellites, and Blue Origin developing gigawatt-scale orbital facilities.
YC CEO Garry Tan reports Starcloud (formerly Lumen Orbit) has reached a $1B valuation just 17 months after Demo Day, making it the fastest YC company ever to achieve this milestone. The company builds data centers in orbit.
Starcloud has signed a contract with SpaceX's Starlink to integrate mini laser terminals across its orbital data center constellation. The deal covers over 50 Starlink Mini Lasers across more than 25 satellites, with the first hardware expected on orbit within one year. Each Starcloud satellite will carry two Starlink Mini Laser terminals, providing up to 25 Gbps of continuous intersatellite connectivity at distances up to 4,000 kilometres. The optical links eliminate the need for bandwidth-constrained ground stations by enabling direct communication between Starcloud satellites and the Starlink constellation. Starcloud launched its first satellite in November 2025, featuring the first NVIDIA H100 GPU on orbit. In March 2026, the company raised $170 million in a Series A round at a $1.1 billion valuation led by Benchmark.
Orbital, a startup building space-based AI data centres, has raised an undisclosed amount in funding led by Andreessen Horowitz's a16z Speedrun. The company plans to launch its first test mission, Orbital-1, in April 2027 to demonstrate proof-of-concept for orbital AI infrastructure. Orbital aims to address AI's energy crisis by deploying satellites in sun-synchronous orbits 1,200 miles above Earth, running entirely on continuous solar power whilst using radiative cooling to dissipate heat. Each satellite will house Nvidia-powered GPU clusters designed for AI inference workloads, with latency comparable to terrestrial fibre connections at 20 to 40 milliseconds. The company is opening Factory-1, a research facility in Los Angeles, to manufacture its compute satellites. Rather than attempting repairs in orbit, Orbital will replace satellites at end-of-life with controlled deorbit and burn-up on reentry.
Orbital compute infrastructure startup Starcloud has raised $170 million at a $1.1 billion valuation, as companies including Elon Musk's SpaceX and Jeff Bezos' Blue Origin race to move power-hungry AI data centers off-planet.
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Industries
Data & Analytics
Energy
Enterprise Software
Aerospace
Company Size
11-50
Company Stage
Series A
Total Funding
$194M
Headquarters
Redmond, Washington
Founded
2024
Find jobs on Simplify and start your career today