Starcloud reaches $1.1 billion valuation as AI space race heats up

Starcloud, a US-based startup, has reached a $1.1 billion valuation after raising $170 million in a Series A round to build data centers in orbit for AI computing. The company aims to move heavy AI computing off Earth to space, where it can utilize steady solar power, cold temperatures, and unlimited space.
Starcloud, a US startup, has reached a $1.1 billion valuation. It raised $170 million in a Series A round to build data centers in orbit for AI computing. The company launched its first satellite, Starcloud-1, with SpaceX in 2025. It tested AI training and inference tasks in space using a Nvidia H100 GPU. Starcloud plans to build a network of up to 88,000 compute satellites. Its next satellite, Starcloud-2, will launch in October 2026 with more power capacity and new hardware. The company aims to lower energy costs and increase scalability by moving AI computing to space.
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