E-scooter Founder Secures $5 Million to Develop Space-Based Data Centers
Image Credits:Orbital / Orbital
Tracking SpaceX’s IPO: The Rise of Space Data Centers
As SpaceX prepares for its IPO later this week, one significant metric to consider is the shift in the venture capital landscape regarding long-term, capital-intensive space ventures. The transformation is so profound that aspiring founders without prior space experience can now initiate space data center companies.
Introduction to Orbital
A promising new player, Orbital, has entered the arena. Founded in May through a16z’s startup accelerator program, Speedrun, Orbital recently secured a $5 million seed round. The company’s ambition is to perform inference in space—pending the regular operation of SpaceX’s Starship. This venture has attracted investments from various firms, including Basis Set, Human Element, Wayfinder, Antler, Anti Fund, Ascent, Rubik, Zero Knowledge Ventures, LYVC, Feld Ventures, New Legacy, FNDR, UpHonest, and Asterisk.
The Visionary Leader
Euwyn Poon, the founder and CEO of Orbital, previously established the e-scooter startup Spin, selling it to Ford a year after its inception. With a solid entrepreneurial background, he turned to a16z’s Speedrun when he was ready to launch his next venture. According to partner Andrew Chen, Poon explored various concepts before settling on the idea of space data centers.
The premise is straightforward: there is an unquenchable demand for AI computing power, and terrestrial deployment can be sluggish. By moving these operations into space, companies can harness constant sunlight and encounter fewer regulatory hurdles. However, launching equipment into orbit poses tremendous financial challenges, making the business case hard to justify.
Targeting the Starship Advantage
Orbital, along with other startups, is placing its bets on SpaceX successfully launching its Starship rocket, which is expected to cater to commercial clients. “We will reach full-scale operations when Starship is online,” Poon stated. The costs associated with using Falcon 9, currently the industry standard, render the business unfeasible for many.
Currently, Poon and his team—comprised of about a dozen experienced professionals from Amazon LEO, SpaceX, and Northrop Grumman—are prepping for a demo flight. This mission will involve testing an Nvidia Blackwell chip aboard a partner’s satellite. By 2028, they hope to deploy their first data-processing spacecraft equipped with Nvidia’s Space-1 Vera Rubin-class GPUs.
Revenue Model and Competitors
Orbital aims to initiate piece-wise inference work, allowing for revenue generation with every satellite launched. This strategy mirrors that of competitor Starcloud, which already has a GPU in orbit and plans further launches to enhance its income until Starship becomes operational.
The ultimate goal for Orbital is an ambitious 10,000 satellites, collectively providing a distributed gigawatt of computing power, with each satellite delivering 100 kW. In comparison, Elon Musk envisions SpaceX’s AI satellites generating up to 150 kW, while Starcloud targets larger spacecraft that can produce 200 kW.
Some startups, however, are unwilling to wait for Starship’s debut. Cowboy Space Company, also backed by a16z, has begun constructing its own rockets, while Blue Origin, founded by Jeff Bezos, recently announced its plans to launch data centers using the New Glenn rocket.
An Expanding Market
Poon is optimistic that the wide-ranging demand for AI will create pathways for multiple companies to thrive. “There are numerous opportunities in our space to explore,” he shared with TechCrunch, outlining various pursuits related to different AI workloads, designs, and configurations for space data centers.
Andrew Chen emphasized Poon’s ability to scale operations, citing his experience in deploying 250,000 scooters across 100 cities. While establishing a project of this magnitude could require a decade and upwards of $5 billion, Chen believes that venture capital firms are increasingly willing to accept such extended timelines.
“This kind of initiative would have seemed audacious a decade ago when the focus was on mobile apps,” Chen remarked. “Beginning in 2026 aligns perfectly with the energy and excitement currently circulating within the capital markets.”
Poon’s Unique Journey
Poon’s journey into the space data center sector began unexpectedly. Upon leaving Ford, he purchased an Nvidia A100 GPU out of curiosity, colocating it in a Santa Clara data center to serve open-weight models. This experience illuminated the immense value of computing resources in the age of AI.
As Orbital moves forward, Poon is driven by a singular focus: to successfully position thousands of GPUs in space.
Conclusion
The emergence of companies like Orbital illustrates a significant shift in the venture capital dynamics surrounding space endeavors. With pioneers like Euwyn Poon at the helm, the future of space data centers appears promising. As technological advancements continue and the price of space launches decreases, the ambitious vision of deploying vast arrays of satellites to deliver unparalleled computing power may very well become a reality. The dynamic interplay of innovation, investment, and an evolving marketplace is set to redefine not only how we view opportunities in space but also the role of AI in leveraging those possibilities.
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