{"id":17069,"date":"2025-12-22T18:32:04","date_gmt":"2025-12-22T10:32:04","guid":{"rendered":"https:\/\/wp-productionenv-bjg9h2g2bgg5b8aa.southeastasia-01.azurewebsites.net\/news\/starcloud-plans-its-next-power-plays-after-training-first-ai-model-in-space\/"},"modified":"2025-12-22T18:32:04","modified_gmt":"2025-12-22T10:32:04","slug":"starcloud-plans-its-next-power-plays-after-training-first-ai-model-in-space","status":"publish","type":"post","link":"https:\/\/starpath.global\/news\/starcloud-plans-its-next-power-plays-after-training-first-ai-model-in-space\/","title":{"rendered":"Starcloud plans its next power plays after training first AI model in space"},"content":{"rendered":"<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1260\" height=\"723\" src=\"https:\/\/cdn.geekwire.com\/wp-content\/uploads\/2025\/12\/251222-starcloud1-1260x723.jpg\" alt=\"\" class=\"wp-image-906199\" srcset=\"https:\/\/cdn.geekwire.com\/wp-content\/uploads\/2025\/12\/251222-starcloud1-1260x723.jpg 1260w, https:\/\/cdn.geekwire.com\/wp-content\/uploads\/2025\/12\/251222-starcloud1-768x440.jpg 768w, https:\/\/cdn.geekwire.com\/wp-content\/uploads\/2025\/12\/251222-starcloud1-1536x881.jpg 1536w, https:\/\/cdn.geekwire.com\/wp-content\/uploads\/2025\/12\/251222-starcloud1.jpg 1552w\" sizes=\"(max-width: 1260px) 100vw, 1260px\"><figcaption data-nosnippet=\"\" class=\"wp-element-caption\">Starcloud\u2019s founders \u2014 CEO Philip Johnston, chief technology officer Ezra Feilden and chief engineer Adi Oltean \u2014 wear protective gear as they check out the startup\u2019s Starcloud-1 satellite before launch. (Starcloud Photo) <\/figcaption><\/figure>\n<p>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.<\/p>\n<p>The business model doesn\u2019t require Starcloud to manage how the data for artificial intelligence applications is processed. Instead, Starcloud provides a data-center \u201cbox\u201d \u2014 a solar-powered satellite equipped with the hardware for cooling and communication \u2014 while its partners provide and operate the data processing chips inside the box.<\/p>\n<p>Starcloud CEO Philip Johnston said his company has already worked out a contract along those lines with Denver-based Crusoe Cloud, a strategic partner.<\/p>\n<p>\u201cIn the long term, you can think of this more like an energy provider,\u201d he told GeekWire. \u201cWe tell Crusoe, \u2018We 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.\u2019 That means we don\u2019t 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.\u201d<\/p>\n<p>If the arrangement works out the way Johnston envisions, providing utilities in space could be lucrative. He laid out an ambitious roadmap: \u201cThe 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.\u201d<\/p>\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\">\n<iframe loading=\"lazy\" title=\"Inside The Startup Launching AI Data Centers Into Space\" width=\"800\" height=\"450\" src=\"https:\/\/www.youtube.com\/embed\/hKw6cRKcqzY?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen=\"\"><\/iframe><br \/>\n<\/figure>\n<h3 class=\"wp-block-heading\">\u2018Greetings, Earthlings\u2019 from AI<\/h3>\n<p>Putting the pieces in place for that business is a primary focus for Redmond, Wash.-based Starcloud, which was founded in 2024 by Johnston, chief technology officer Ezra Feilden and chief engineer Adi Oltean. The co-founders are building on the experience they gained at ventures ranging from SpaceX\u2019s Starlink operation to Airbus and McKinsey &amp; Co.<\/p>\n<p>Starcloud was one of the first startups to look seriously into the idea of using satellites as data centers. Initially, the business model focused on processing data from other satellites before sending it down to Earth, thus economizing on the cost of downlinking the raw data. Now, tech companies are also gauging the benefits of <em>uplinking<\/em> data to orbital data centers for processing.<\/p>\n<p>The leading companies in AI \u2014 including OpenAI, Microsoft, Amazon, Google and Meta \u2014 are spending hundreds of billions of dollars on data centers that are increasingly hungry for square footage, electrical power and cooling capacity. That has led the titans of AI, and startups like Starcloud and Sophia Space, to look toward Earth orbit as the next frontier.<\/p>\n<p><strong>RELATED:<\/strong> Full coverage of the data center boom<\/p>\n<p>Starcloud\u2019s first big move in space came with last month\u2019s launch of Starcloud-1, a 130-pound satellite equipped with an Nvidia H100 chip. Launched by a SpaceX Falcon 9 rocket, the mission aimed to prove that the hardware on Starcloud-1 could process AI data reliably in the harsh radiation environment of outer space.<\/p>\n<p>This month, executives confirmed success. Using the Nvidia chip, Starcloud trained a large language model called NanoGPT, a feat that hadn\u2019t been done in space before. The AI agent was trained on the complete works of William Shakespeare \u2014 and so it answered queries in sometimes-stilted Shakespearean English. (For example, \u201cThey can it like you from me speak.\u201d)<\/p>\n<p>Starcloud-1 produced better results with a pre-trained version of Gemma, an open-source AI model from Google. When asked for its first statement, Gemma responded with \u201cGreetings, Earthlings! Or, as I prefer to think of you \u2014 a fascinating collection of blue and green.\u201d<\/p>\n<p>Former Google CEO Eric Schmidt, who is now executive chairman and CEO of Relativity Space, said in a post to X that Gemma\u2019s performance was \u201ca seriously cool achievement.\u201d<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1167\" height=\"1260\" src=\"https:\/\/cdn.geekwire.com\/wp-content\/uploads\/2025\/12\/251222-greetings1-1167x1260.jpg\" alt=\"Computer screen dialogue: Query: &quot;I need a witty first statement from you, as the very first AI running in space (maybe like the first step on the Moon)!&quot; Answer: &quot;Greetings, Earthlings! Or, as I prefer to think of you  - a fascinating collection of blue and green. Let's see what wonders this view of your world holds. I'm Gemma, and I'm here to observe, analyze, and perhaps occasionally offer a slightly unsettlingly insightful commentary. Let's begin!&quot;\" class=\"wp-image-906208\" srcset=\"https:\/\/cdn.geekwire.com\/wp-content\/uploads\/2025\/12\/251222-greetings1-1167x1260.jpg 1167w, https:\/\/cdn.geekwire.com\/wp-content\/uploads\/2025\/12\/251222-greetings1-768x829.jpg 768w, https:\/\/cdn.geekwire.com\/wp-content\/uploads\/2025\/12\/251222-greetings1.jpg 1280w\" sizes=\"(max-width: 1167px) 100vw, 1167px\"><figcaption data-nosnippet=\"\" class=\"wp-element-caption\">A computer monitor displays the first response produced by Starcloud\u2019s AI agent in space. (Starcloud Photo via LinkedIn)<\/figcaption><\/figure>\n<h3 class=\"wp-block-heading\">Starcloud gets serious<\/h3>\n<p>Coming up with orbital witticisms is only the beginning. \u201cWe\u2019re also going to be running some more practical workloads,\u201d Johnston said.<\/p>\n<p>Next year, Starcloud-1\u2019s Nvidia H100 chip will start analyzing synthetic-aperture radar data from Capella Space\u2019s satellite constellation. \u201cThe idea is that we can draw insights from that data on orbit and not have to wait a few days to downlink all that data over very slow RF ground-station links,\u201d Johnston said.<\/p>\n<p>Starcloud-2 is due for launch next October, with about 100 times the power-generating capability of its predecessor. It will carry multiple H100 chips and Nvidia\u2019s more advanced Blackwell B200 chip. \u201cWe\u2019re also flying some on-premises hardware from one of the big hyperscalers. I can\u2019t say exactly who yet,\u201d Johnston said.<\/p>\n<p>\u201cFrom there, we scale up to Starcloud-3, which is about a 2-ton, 100-kilowatt spacecraft that will launch on the Starship \u2018Pez Dispenser\u2019 form factor,\u201d he said. \u201cSo we can launch many of those.\u201d<\/p>\n<p>How many? Johnston envisions a constellation of tens of thousands of satellites in low Earth orbit, or LEO. The satellites would travel in a globe-girdling \u201ctrain,\u201d with data transmitted from one satellite to the next one via laser links. \u201cWe just basically have a laser fixed [on each satellite], and then we very slightly adjust with a very finely tuned mirror. \u2026 You have one target that you\u2019re aiming for,\u201d Johnston said.<\/p>\n<p><strong>RELATED:<\/strong> OpenAI CEO reportedly turned to a Seattle startup in quest to challenge SpaceX on the space data frontier<\/p>\n<p>Johnston said the company has begun the process of seeking a license from the Federal Communications Commission for the Starcloud-3 constellation. The plan also depends on the development schedule for SpaceX\u2019s Starship super-rocket, which would be charged with deploying the satellites.<\/p>\n<p>Starcloud will need funding as well, from investors and from potential customers such as the U.S. Space Force. \u201cWe\u2019ve raised about $34 million as of today,\u201d Johnston said. \u201cSo we are funded actually through the next two launches at least.\u201d He said the company may consider a Series A funding round in the first half of 2026 to support the development of Starcloud-3.<\/p>\n<p>Starcloud currently has 12 team members. \u201cWe could easily triple the size of the team now \u2026 but we\u2019ve got some of the most kick-ass engineers in the business,\u201d Johnston said. The company is likely to be looking for a bigger facility next year. \u201cWe\u2019ll stay in Redmond, almost certainly,\u201d Johnston said.<\/p>\n<p>Over the past year, industry observers have been debating whether orbital data centers could really offer a better value proposition than terrestrial data centers. But in light of the interest that\u2019s been coming from the likes of SpaceX\u2019s Elon Musk and Blue Origin\u2019s Jeff Bezos, Johnston feels as if the debate has now been settled.<\/p>\n<p>\u201cPeople seem to trust that if Elon wants to do it, then there must be a sensible way to figure that out,\u201d Johnston said.<\/p>\n<p>Can Starcloud handle the competition from SpaceX or the dominant players in the data center market? Johnston noted that Google recently announced an AI-in-space moonshot called Project Suncatcher, \u201cwhich is exactly what we\u2019re doing.\u201d<\/p>\n<p>\u201cThey\u2019re paying Planet Labs to do a demo in 2027, and as I understand it, the demo they\u2019re doing in 2027 is less powerful than the one we\u2019ve got in orbit \u2014 so we have a massive head start against all of those guys, AWS and SpaceX being the exceptions,\u201d Johnston said. <\/p>\n<p>\u201cI think we become an interesting partner for some of those folks,\u201d he added. \u201cAnd I don\u2019t mean an acquisition target necessarily. I do mean potentially a partner.\u201d<\/p>\n<p>Putting tens of thousands of satellites in low Earth orbit sounds like a job of astronomical proportions. But if everything comes together the way Johnston hopes, Starcloud\u2019s power-generating, data-crunching satellites could go even farther on the final frontier.<\/p>\n<p>\u201cThere are many different places you can put them, further away from Earth,\u201d Johnston said. \u201cWe\u2019re looking at lunar orbits. We\u2019re looking at some other Lagrangian points \u2014 the lunar L1 to Earth, also just the Earth L1. It\u2019s actually less radiation than in LEO.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Starcloud\u2019s founders \u2014 CEO Philip Johnston, chief technology officer Ezra Feilden and chief engineer Adi Oltean \u2014 wear protective gear as they check out the startup\u2019s Starcloud-1 satellite before launch. (Starcloud Photo) 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 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[2],"tags":[293,130,4374,4397,4333,4398,20,442,496],"class_list":["post-17069","post","type-post","status-publish","format-standard","hentry","category-news","tag-ai","tag-artificial-intelligence","tag-data-centers","tag-llm","tag-lumen-orbit","tag-nvidia","tag-satellite","tag-satellites","tag-starcloud"],"acf":[],"_links":{"self":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/17069"}],"collection":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/comments?post=17069"}],"version-history":[{"count":0,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/17069\/revisions"}],"wp:attachment":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media?parent=17069"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/categories?post=17069"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/tags?post=17069"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}