Starcloud hits $1.1 billion valuation as AI space infrastructure grows

Yesterday 12:15

Starcloud, a startup developing orbital computing infrastructure, has raised $170 million, bringing its valuation to $1.1 billion as interest in space-based AI systems accelerates. The funding round, led by Benchmark and EQT Ventures, highlights growing investor demand for off-planet data solutions to ease the strain on terrestrial energy grids and data centers.

The company plans to deploy a constellation of 88,000 satellites to host AI workloads and intends to use the new capital to develop next-generation satellites, expand manufacturing, and secure future launch contracts. CEO and co-founder Philip Johnston said existing agreements focus on other spacecraft, including Earth Observation and DOW satellites, with upcoming binding energy offtake contracts expected with major cloud providers.

This investment follows moves by SpaceX and Blue Origin, both aiming to expand orbital AI capabilities. In February, SpaceX acquired the AI startup xAI and outlined plans for a million-satellite orbital data network, reflecting the intensifying race for space-based computing infrastructure.