Summary:
Lumen Orbit raised over $10 million in seed funding, one of Y Combinator's top deals.
The startup aims to create data centers in space for AI model training.
Plans to launch a demonstrator satellite in 2025 with Nvidia's support.
The demand for AI is driving a scramble for power sources among major tech companies.
Lumen Orbit competes with other space startups like Lonestar Data Holdings.
Lumen Orbit's Groundbreaking Seed Round
Lumen Orbit, a data-centers-in-space startup, has successfully closed an oversubscribed seed round exceeding $10 million, making it one of the standout deals from Y Combinator's latest cohort.
Aiming for the Stars
Based in Redmond, Washington, Lumen Orbit is on a mission to build a network of data centers in space capable of scaling to a gigawatt capacity. This ambitious project aims to support the training of large AI models. The company, which went through YCâs 2024 summer batch, has attracted substantial attention from venture capitalists (VCs), leading to an intense deal-making process.
Progress on the Horizon
Despite its lofty goals, Lumen Orbit is already making significant strides. Founded in January 2024, the startup plans to launch its demonstrator satellite in 2025, in collaboration with Nvidiaâs Inception program.
The AI Power Scramble
The demand for AI capabilities has spurred a race among tech giants like Microsoft, Google, and Amazon to secure power sources, including deals with nuclear power plants. By 2030, data centers are projected to consume 9% of overall energy consumption in the U.S.
Competing in Space
Lumen Orbit isnât alone in its quest. Lonestar Data Holdings has also entered the fray, raising $5.8 million to develop lunar data centers.
Venture Capitalists' Perspective
While VCs remain enthusiastic about innovative solutions to pressing issues, they caution that customer adoption may be a challenge for these startups. Nonetheless, Lumen Orbit's unique approach to the data center crisis is attracting significant investment interest.
Founding Team
Lumen Orbit was founded by Philip Johnston (CEO), Ezra Feilden (CTO), and Adi Oltean (Chief Engineer). Earlier this year, they raised a $2.4 million pre-seed round, with backing from Nebular, Everywhere Ventures, Tiny VC, and Sequoia.
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