Orbital AI Startup Starcloud Raises $170M at $1.1B Valuation

Starcloud Inc., a Redmond, Washington-based startup developing artificial intelligence data centers in orbit, has raised $170 million in a Series A funding round that values the company at $1.1 billion. The investment, announced on March 30, marks the firm's achievement of unicorn status just 17 months after its presentation at Y Combinator's demo day in 2024.

The round was led by Benchmark and EQT Ventures, with participation from investors including Macquarie Capital, NFX, 776 Ventures, Manhattan West, Monolith Power Systems, and Y Combinator. Angel backers included former Boeing CEO Dennis Muilenburg, former Starbucks CEO Kevin Johnson, and retired U.S. Air Force General Stephen Wilson. Benchmark partner Chetan Puttagunta is joining the board. The funding brings Starcloud's total capital raised to approximately $200 million since its founding.

Starcloud's approach addresses growing constraints on Earth-based AI infrastructure, where demand for computing power is outpacing available land, energy grids, and regulatory approvals. Building terrestrial data centers can take up to five years due to permitting and power shortages, company officials noted. In low Earth orbit,...