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Starcloud raises $250M more for orbital data centers

Starcloud says it has raised $250 million in new funding to support the creation of a constellation of data center satellites powered by Nvidia’s next-generation AI chips.

The Series A extension funding round was led by Manhattan West, with participation from existing investors including Benchmark, EQT, Soma, NFX and 776. Among the new investors joining for this round are Nvidia, Cisco Investments, Cedar Capital, Goanna Capital and Standard Capital.

Founded in 2024, Starcloud is headquartered in Redmond, Wash., and is building production lines for its Starcloud-3 spacecraft at a new 100,000-square-foot manufacturing facility in Woodinville, Wash. The newly announced round brings the startup’s total capital raised to $450 million, with a post-money valuation of $2.3 billion.

Nvidia’s participation in the funding round brings Starcloud’s collaboration with the computer-chip titan to a new level. In November 2025, Starcloud flew Nvidia’s H100 GPU to orbit for the first time. It used the chip to train a large language model called NanoGPT — marking a milestone in space-based AI data processing.

Starcloud plans to equip future satellites with Nvidia’s Space-1 Vera Rubin Module, which Nvidia says will deliver 25 times as much in-space compute capability as the H100. Starcloud’s satellites will serve as an early flight platform for the space-rated chips.

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GeekWire

Sophia Space wins a patent for cool orbital data centers

Sophia Space has secured a patent for a technology that could pave the way for solar-powered orbital data centers that passively radiate excess heat into space.

Developed in partnership with Caltech, Sophia’s architecture tackles a major hurdle in orbital computing: how to cool thousands of chips running artificial intelligence applications in space.

Traditional designs rely on satellite-wide radiator systems with heat pumps and circulating fluids. In contrast, Sophia plans to build flat, modular tiles equipped with four processors each. The tiles draw power from solar cells on their sunlit side, and shed heat into the cold vacuum of space from their dark side.

This approach avoids having to put a cooling system in the central bus of every satellite, said Leon Alkalai, Sophia Space’s co-founder, chairman and chief technology officer. “I think you will find in time that our approach is much more favorable when we scale to larger wattage systems, because bringing everything into a bus can only be done until a certain level, and then it becomes almost impossible to do,” he told me. “Our benefit is really scalability.”

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GeekWire

TerraByte takes its ‘Earth Search Engine’ to the next level

Two months after emerging from stealth mode, TerraByte AI is using artificial intelligence and a new partnership to upgrade its “Earth Search Engine.”

The startup, which maintains operations in Seattle as well as San Francisco, has just rolled out a TerraByte News service that pinpoints wildfires, earthquakes and severe weather events on an interactive map. Users can follow links to access news reports, social media posts and satellite views related to selected events.

The satellite views include open-source images from NASA’s Earth observation system as well as Europe’s Sentinel satellites. And now the database also features high-resolution pictures provided through a newly announced partnership with Texas-based SkyFi. The partnership gives TerraByte’s users access to SkyFi’s self-service Earth intelligence platform, which offers satellite and aerial imagery from more than 300 sources at prices as low as $15 per image.

“In May, when we came out of stealth, we made the planet searchable,” TerraByte CEO Rishi Madhok told me. “Now, the moment you find something, you can hold the imagery in your hands within a day. The next step is making Earth intelligence as routine as a web search — you ask, you see, and then you act.”

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Cosmic Science

AI quest to decode ancient scrolls yields new revelations

Scientists have given a status report on their efforts to use CT scans and artificial intelligence to decipher rolled-up papyrus scrolls that were buried in volcanic ash almost 2,000 years ago.

The researchers say they’ve found hints that one of the scrolls was written more than a century before the eruption, which destroyed the Roman cities of Pompeii and Herculaneum in the year 79. Another partially deciphered scroll hints that the collection may well reveal previously unknown lore about Roman and Greek mythology.

It’s the latest chapter in a scientific quest that began 274 years ago.

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GeekWire

TerraByte creates ‘Earth Search Engine’ for satellite data

A stealthy Seattle startup called TerraByte AI is unveiling a software platform that uses artificial intelligence to sift through real-time satellite data for geospatial gems.

TerraByte’s “Earth Search Engine” analyzes streams of satellite imagery, recognizes features of interest and connects the dots through natural-language queries. The platform’s key advantage is that its data set doesn’t have to go through the laborious, expensive process of manual annotation.

“We’re just using self-supervised learning techniques to essentially understand the pixels without having to manually annotate it,” CEO and co-founder Rishi Madhok told me.

“There are many applications that you can do, like identifying power-line segments, finding parking lots near highways without EV charging stalls, watching container ships entering port,” he explained. “If you want to monitor the Strait of Hormuz, you can use our models to do that. Deforestation areas, open-pit mining in Arizona — all of these are very different concepts, but our model is able to understand them because it’s a foundational model.”

TerraByte is laying out its approach this week in Huntsville, Ala., at an ESA-NASA workshop on AI models for Earth observation.

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Cosmic Space

Elon Musk lays out a new vision as SpaceX acquires xAI

SpaceX CEO Elon Musk says he’s making space-based artificial intelligence the “immediate focus” of a newly expanded company that not only builds rockets and satellites, but also controls xAI’s generative-AI software and the X social-media platform.

That’s the upshot of today’s announcement that SpaceX has acquired xAI. The Information quoted unnamed sources as saying that xAI was valued at $250 billion, while SpaceX’s value was set at a trillion dollars. That would make SpaceX the most valuable private company in the world — but because Musk held a controlling interest in both companies, those valuations may be somewhat subjective.

Ross Gerber, an investment adviser who tracks Musk’s business dealings, quipped on X that the world’s richest person decided to go ahead with the acquisition after “a short negotiation with himself.”

Musk said the combination of SpaceX and xAI would facilitate the creation of a new constellation of orbital data centers. SpaceX is already seeking approval from the Federal Communications Commission to put up to a million satellites in low Earth orbit for such a constellation.

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GeekWire

Startup has big plans for robotic arms powered by AI

A space startup founded by veterans of Jeff Bezos’ Blue Origin space venture is recruiting partners in its quest to build robotic arms powered by artificial intelligence.

Founded in late 2024, Puyallup, Wash.-based Orbital Robotics is still in its infancy — but it has already raised about $310,000 in funding. Orbital Robotics CEO Aaron Borger told GeekWire that the company is working with a stealthy space venture on an orbital rendezvous project for the U.S. Space Force, with a series of demonstration missions scheduled in the next year and a half.

And that’s just the start: Borger and his teammates are trying to get traction for a plan that could give NASA’s aging Hubble Space Telescope a much-needed boost.

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GeekWire

Starcloud plans its next power moves for AI in space

After taking one small but historic step for space-based AI, a Seattle-area startup called Starcloud is gearing up for a giant leap into what could be a multibillion-dollar business.

The business model doesn’t require Starcloud to manage how the data for artificial intelligence applications is processed. Instead, Starcloud provides a data-center “box” — a solar-powered satellite equipped with the hardware for cooling and communication — while its partners provide and operate the data processing chips inside the box.

Starcloud CEO Philip Johnston said his company has already worked out a contract along those lines with Denver-based Crusoe Cloud, a strategic partner.

“In the long term, you can think of this more like an energy provider,” he told GeekWire. “We tell Crusoe, ‘We have this box that has power, cooling and connectivity, and you can do whatever you want with that. You can put whatever chip architecture you want in there, and anything else.’ That means we don’t have to pay for the chips. And by far the most expensive part of all this, by the way, is the chips. Much more expensive than the satellite.”

If the arrangement works out the way Johnston envisions, providing utilities in space could be lucrative. He laid out an ambitious roadmap: “The contract is 10 gigawatts of power from 2032 for five years, at 3 cents per kilowatt-hour. That comes to $13.1 billion worth of energy.”

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GeekWire

How AI can help scientists head off water woes

Microsoft and NASA say they’re applying artificial intelligence to a challenge that has become increasingly urgent: how to cope with flooding and other disasters driven by extreme weather.

The result of their efforts is Hydrology Copilot, a set of AI agents aimed at making hydrological data easier to access and analyze. The platform is built on the foundation that was established for NASA Earth Copilot, a cloud-based AI tool that can sift through petabytes of Earth science data.

Hydrology is the scientific study of Earth’s water cycle, which encompasses precipitation, runoff, evaporation and the movement of water through rivers, lakes and soil. It’s not just an academic exercise: Hydrologic insights are put to use in fields ranging from agriculture to forestry to urban development.

“NASA has long produced advanced hydrology and land-surface datasets, powering breakthroughs in drought early-warning systems, environmental planning and environmental research,” Juan Carlos López, a senior solution specialist at Microsoft who focuses on space and AI, wrote in a blog post. “Yet despite their value, these datasets and the specialized tools required to navigate and interpret them remain difficult to access for many who could benefit most.”

That’s where Hydrology Copilot comes in: Powered by Microsoft Azure OpenAI Service and Microsoft Foundry, the platform lets researchers query NASA’s data using straightforward questions — for example, “Which regions may be facing elevated flood risk?”

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GeekWire

Tech pundits get snarky over the coming AI bubble

How will the companies that have invested tens of billions of dollars in the infrastructure for artificial intelligence fare when the enshittification hits the fan? That question came in for a lot of attention — and snark — when tech pundits Cory Doctorow and Ed Zitron sat down in Seattle to muse about what’s happening in the world of AI.

Both men know a thing or two about enshittification, the process by which tech offerings gradually turn to crap due to the hunger for profits. Doctorow’s Seattle stopover was part of a publicity tour for his newly published book on the subject, “Enshittification: Why Everything Suddenly Got Worse and What to Do About It.”

For this week’s appearance at the Seattle Public Library, he was paired with Zitron, a public relations specialist, podcaster and writer who surveys the tech scene with a critical eye.

The way they see it, the bursting of the AI investment bubble is a given. And that’s not by any means a contrarian view. Even Microsoft CEO Satya Nadella and Amazon founder Jeff Bezos have acknowledged that the AI tech sector seems likely to go through some retrenchment, while insisting it will be followed by a resurgence that will bring huge benefits to society.

That’s where Doctorow and Zitron part ways with Nadella and Bezos.