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Starcloud raises $250 million for orbital data centers as launch options dry up
BusinessFriday, August 21, 2026 at 03:03 PM

Starcloud raises $250 million for orbital data centers as launch options dry up

Source: TechCrunch AI
Curated Summary

Starcloud, a startup building satellites for in-orbit AI inference, has raised a $250 million extension to its Series A, bringing the round to $420 million and valuing the company at $2.3 billion.

The new funding, led by Manhattan West Ventures with participation from Nvidia ($25 million) and Cisco, will support a larger manufacturing facility and the development of its Starcloud-3 spacecraft, designed for SpaceX's Starship.

CEO Philip Johnston is also securing launch capacity amid a tightening rocket market, as Falcon 9 is scheduled to end by 2028 and alternatives like New Glenn and Vulcan are not yet flying regularly.

Starcloud plans to launch two Starcloud-2 compute satellites on rideshare missions in 2027 for customers including US government agencies.

The company has requested FCC permission for 88,000 spacecraft, betting on Starship to lower launch costs and make orbital data centers competitive with terrestrial ones.

The funding highlights growing investor interest in space-based AI infrastructure, even as launch logistics remain a major bottleneck.

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via TechCrunch AI

#orbital-data-centers#space-ai#funding#startup#nvidia

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