Nvidia-Backed Startup Starcloud Raises $250M for Space-Based GPU Data Centers
US startup Starcloud has secured $250 million in Series A extension funding, backed by Nvidia and Cisco, valuing the company at $2.3 billion. The funding will accelerate the development of GPU-equipped satellites designed to run AI models and perform orbital computing. This initiative represents a paradigm shift in AI infrastructure, moving computing power to space to bypass terrestrial energy grid constraints and enable real-time edge processing directly on satellites. Nvidia's direct involvement signals growing industry interest in orbital AI hardware and specialized space-grade silicon. Starcloud has already tested an Nvidia H100 GPU in orbit on its Starcloud-1 satellite and is co-developing the "Space-1 Vera Rubin" module with Nvidia to address space-specific challenges like radiation and thermal management. The company ultimately aims to deploy a constellation of 88,000 satellites to deliver 20 gigawatts of orbital computing capacity.
## BACKGROUND
Orbital computing, or space-based edge computing, shifts data processing from ground stations directly to satellites to reduce latency and bandwidth bottlenecks. However, operating high-performance GPUs in space presents severe engineering hurdles, as the lack of atmosphere prevents traditional convective air cooling, forcing reliance on thermal conduction and radiative heat dissipation.