Starcloud raises $250 million for orbital data centers as launch options dry up

A startup developing satellites that perform AI inference in orbit has raised $250 million in funding, bringing its total valuation to $2.3 billion. The company plans to use the capital to expand manufacturing and secure launch capacity for its spacecraft, as rocket transportation has become increasingly constrained. Launch availability is critical because the dominant rocket for satellite deployment is scheduled to be phased out in 2028, while alternative rockets are not yet flying regularly or remain unproven. The startup's long-term strategy depends on a larger, newer rocket becoming operational and reducing launch costs enough to make orbital data centers competitive with ground-based alternatives.