Starcloud, a US-based space infrastructure startup, has raised $170 million in a Series A funding round, giving it a valuation of $1.1 billion. The round was led by Benchmark and EQT Ventures, reflecting strong investor interest in off-Earth computing solutions.
The company plans to use the funding to develop orbital data centers capable of running AI workloads in space. These data centers aim to ease the pressure on ground-based infrastructure, which faces growing energy and cooling demands due to AI’s rapid expansion. By operating in low Earth orbit, Starcloud can take advantage of near-continuous solar power and the cold of space, potentially improving efficiency and reducing some terrestrial limitations.
Starcloud has already demonstrated its technology. In November 2025, it launched a satellite equipped with an Nvidia H100 GPU, successfully performing AI training in orbit. Its next satellite, Starcloud 2, is expected to carry multiple GPUs, including Nvidia’s next-generation chips and an AWS server blade, later this year.
The startup also plans to expand manufacturing and secure more launch contracts, moving toward commercial operations. Its long-term vision includes building a constellation of up to 88,000 satellites, creating a large-scale space-based compute network.
Starcloud’s progress comes as part of a broader “AI space race,” with other companies like SpaceX and Blue Origin exploring orbital computing. SpaceX has announced plans for its own orbital AI data network following its acquisition of the AI startup xAI.
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