Cowboy raises $275 million to build rockets with orbital data center upper stages

Cowboy Space, originally founded as Aetherflux less than two years ago, has raised $275 million in Series B funding, bringing its total valuation to $2 billion. The San Carlos, California-based startup aims to build rockets with upper stages designed as orbital data centers, addressing the growing demand for AI compute and energy that exceeds terrestrial infrastructure capabilities. Index Ventures led the funding round, with Cowboy founder and CEO Baiju Bhatt—also co-founder of Robinhood—participating as an investor. The company has now raised approximately $365 million in total. The funding positions Cowboy among the fastest-growing space industry unicorns, following closely behind Starcloud, which achieved unicorn status in April with a $170 million Series A round. Cowboy distinguishes itself by integrating rocket upper stages and data center payloads into a single vehicle, optimizing mass and efficiency. Its first mission, planned for later this year, involves a small satellite built with Apex to test wireless power beaming from low Earth orbit (LEO) to Earth using infrared lasers. While the demonstration focuses on proving the technology, Bhatt emphasized the long-term goal of using power in orbit for AI compute rather than transmitting it to Earth. Cowboy’s approach contrasts with competitors like Starcloud, which relies on SpaceX’s Starship for launches. The startup’s vision includes deploying thousands of satellites to create power and data center constellations, though specific details remain under wraps. The surge in funding reflects investor confidence in orbital data centers as a solution to the power and cooling challenges faced by terrestrial data centers, particularly as companies like Anthropic explore SpaceX’s orbital data center proposals. The timing aligns with SpaceX’s potential IPO and broader industry interest in orbital infrastructure. Cowboy’s first mission will serve as a critical test for its wireless power beaming technology, validating the physics and approach before scaling up. Meanwhile, other startups like Florida-based Star Catcher are also developing optical power-beaming solutions to enhance satellite energy supply. Cowboy’s ambitions highlight the growing competition and innovation in space-based data and energy solutions.