Starcloud raises $250M to build AI data centers in orbit
Artificial intelligence hardware startup Starcloud Inc. today announced that it has raised $250 million in funding at a $2.3 billion valuation.
Investment firm Manhattan West led the deal. It was joined by more than a dozen other backers including Nvidia Corp. and Cisco Investments. The cash infusion extends a Series A round that Starcloud announced in March.
The company’s latest raise comes about 10 months after it launched an Nvidia graphics card into orbit aboard a small satellite. Starcloud used the system to complete the first-ever orbital AI training run. In the long term, the company hopes to launch 88,000 more satellites with a combined computing capacity of 20 gigawatts.
Starcloud says that orbital AI clusters offer several advantages over terrestrial data centers. They don’t require the complicated cooling systems that are needed on the ground. Additionally, satellites can generate power for their onboard AI chips using solar panels.
