NVIDIA-backed startup Starcloud raises $250M to build orbital AI data centers

Starcloud, a U.S.-based startup developing data centers designed to operate in space, has raised $250 million in a Series A extension at a $2.3 billion valuation. The funding provides fresh capital to advance a new class of computing infrastructure aimed at running AI workloads in orbit, a concept the company believes could help ease the growing strain on terrestrial data centers.

The round was led by Manhattan West and brings Starcloud's total funding since its founding in 2024 to $450 million. New investors include NVIDIA and Cisco Investments, alongside existing backers such as Benchmark and EQT. The capital will support spacecraft manufacturing, engineering, and future launches as the company works toward building a large orbital computing network.

Starcloud's approach involves moving data center hardware from Earth into low orbit, where conventional assumptions about cooling, radiation, and power management no longer apply. In November 2025, the company launched its first major demonstration mission, Starcloud-1, which carried an NVIDIA H100 GPU into space. That mission, according to the company, proved that data center-grade computing hardware could function reliably in orbit.

"Last November we put the first NVIDIA H100 in orbit. Today this fresh capital empowers us to build the infrastructure to launch many more of NVIDIA's most advanced GPUs into space," said Philip Johnston, co-founder and CEO of Starcloud.

Since that demonstration, Starcloud says it has trained an AI model in space, run a version of Google's Gemini in orbit, and demonstrated high-performance AI inference and fine-tuning using hardware operating beyond Earth's atmosphere. The company is now collaborating with NVIDIA on the Space-1 Vera Rubin Module, a system designed specifically for the harsh conditions found outside Earth's atmosphere.

Orbital data centers face engineering challenges that terrestrial facilities do not. Without conventional air cooling, heat must be transferred through radiators, while computing components require protection against radiation. Starcloud's satellites are intended to serve as early test platforms for space-rated computing hardware, using data from the Starcloud-1 mission to refine future systems.

The new funding will also support development of Starcloud's next-generation Starcloud-3 spacecraft. Production lines are already being built at a new 100,000-square-foot manufacturing facility in Woodinville, Washington. The company's long-term vision involves a constellation of 88,000 satellites capable of providing 20 gigawatts of computing capacity in orbit, a scale that would require a massive expansion of satellite manufacturing and launch capabilities.

Starcloud describes its mission as an attempt to address what it calls the "AI energy bottleneck" by moving computing infrastructure into orbit, offering an alternative to the enormous energy and infrastructure demands of AI computing on Earth. The immediate focus, however, remains more modest, with the company aiming to expand manufacturing, continue engineering work with NVIDIA, and secure future launch capacity.

The company's progress highlights a significant shift in how AI infrastructure could be built, with startups exploring the use of specialized computing hardware in orbit and connecting it through large-scale satellite networks. The technology remains at an early stage, and its long-term viability will depend on whether companies can overcome the economic, technical, and logistical challenges of operating and maintaining thousands of satellites in space.