Observed Signal · Oct 28, 2026 · Technical Release · Source: Newcomer · Impact: 4/5 · Sentiment: Positive
Startups Push Space Data Centers, Rocket Launches
Startups are advancing 'orbital infrastructure' with space-based data centers and laser power beaming. A SpaceX launch carried an experimental Google satellite testing TPUs in space and Cowboy Space's Reason-1 satellite for laser power beaming. Cowboy Space, led by Robinhood cofounder Baiju Bhatt and backed by Index Ventures, unveiled a purpose-built data center rocket capable of carrying five racks of NVIDIA Vera Rubin GPUs into orbit, and plans to compete with SpaceX in launch services under 'Big Iron Express.' The startup aims to make space compute cost-competitive with terrestrial compute. Another funded player, Starcloud, backed by Benchmark, is valued at $2.3 billion.
This marks a significant step toward space-based data centers, potentially transforming cloud and edge computing infrastructure for the adtech industry by offering new compute alternatives and pushing forward the feasibility of orbital data processing.
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Key Takeaways & Evidence Grounding
- A SpaceX rocket carried an experimental Google satellite with four TPUs to test in space.
- Cowboy Space launched Reason-1 satellite to demonstrate laser power beaming from orbit to Earth.
- Cowboy Space unveiled a purpose-built data center rocket carrying five racks of NVIDIA Vera Rubin GPUs.
- Cowboy Space plans to offer launch services under the name 'Big Iron Express' to compete with SpaceX.
- Starcloud, backed by Benchmark, is valued at $2.3 billion.
Connected Companies & Entities
“A SpaceX rocket carried an experimental Google satellite that will make requests to Gemini while testing its four TPUs.”
“A SpaceX rocket carried the satellites, and Cowboy Space plans to compete with SpaceX in launch services.”
“Cowboy Space is backed by Jan Hammer at Index Ventures, among others.”
“The rocket carries racks of NVIDIA Vera Rubin GPUs.”
“Starcloud is backed by Benchmark.”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Google and SpaceX Discuss Orbital Data Centers
The Wall Street Journal reports that Google and SpaceX are in talks to explore building data centers in orbit, pitching space as a future home for AI compute. The conversations come as SpaceX prepares for a potential $1.75 trillion IPO later in 2026 and following SpaceX’s recent acquisition of xAI and a deal to provide compute to Anthropic. Google is reportedly also speaking with other rocket companies and plans to launch prototype satellites by 2027 under an initiative called Project Suncatcher. Elon Musk has publicly promoted the idea that orbital data centers could become cheaper to operate, though recent analysis notes current launch and construction costs make terrestrial data centers substantially less expensive today. Google previously invested $900 million in SpaceX in 2015. TechCrunch sought comment from both companies.
Starcloud Raises $250M for Orbital Data Centers
Starcloud, a startup building satellites for AI inference in orbit, added a $250 million extension to its March $170 million Series A, valuing the company at $2.3 billion. The funding will scale manufacturing and advance its largest spacecraft, Starcloud-3, which is intended to fly on SpaceX’s Starship. Investors in the extension include Manhattan West Ventures, Nvidia (reported $25M), Cisco, Benchmark, EQT and others. Starcloud plans rideshare launches of two 8 kW compute satellites (Starcloud-2) in 2027, has requested FCC permission to operate 88,000 spacecraft, and is building a 100,000 sq ft production facility in Woodinville, Washington. The company is collaborating with Nvidia on space-ready GPU development and aims to fly Nvidia’s Vera Rubin Space-1 chip in late 2028.
SpaceX IPO Plans Spotlight Orbital Data Centers
TechCrunch reports SpaceX has filed confidential IPO paperwork seeking to raise $75 billion at a $1.75 trillion valuation. CEO Elon Musk has indicated that orbital data centers — server infrastructure deployed in space via satellite constellations — are intended to be a major part of SpaceX’s future strategy. The article (a preview of a TechCrunch Equity podcast discussion) places SpaceX’s plans in context with startups such as YC‑backed Starcloud (which raised $170 million and reached unicorn status), and mentions interest from Jeff Bezos/Amazon and Blue Origin. Hosts discuss technical, capital and social challenges (including local opposition to terrestrial data centers), and note SpaceX’s unique position as a launch provider that could monetize deployment as company revenue.
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