Cowboy Space raises $275 million to build orbital AI data centers and its own rockets

Cowboy Space Secures $275 Million to Address Launch Capacity Crisis

Cowboy Space has closed a $275 million Series B funding round at a $2 billion post-money valuation, led by Index Ventures, with participation from Breakthrough Energy Ventures, Construct Capital, IVP, NEA, and SAIC 1

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. The raise brings the company's total outside funding to $355 million 3

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. Founded in 2024 by Baiju Bhatt, co-founder of Robinhood, the company originally launched as Aetherflux with plans to collect solar energy in space and beam it to Earth 1

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. The pivot to orbital data centers reflects the practical realities of harnessing space-to-Earth power beaming technology while addressing the urgent demand for AI computing infrastructure.

Building Rockets to Launch Orbital Data Centers

The most striking aspect of Cowboy Space's strategy is its decision to develop its own rocket program, a move that puts it in direct competition with established players like SpaceX Corp. and Blue Origin. "We're standing up our own rocket program," Bhatt told TechCrunch, expecting the first launch before the end of 2028 1

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. This decision stems from a critical shortage of rockets capable of deploying space data centers at scale. Bhatt explained that he spoke to multiple launch providers but couldn't find enough launch capacity to truly scale an orbital data center business or achieve unit economics that could compete with terrestrial alternatives 1

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Innovative Design Integrates Data Centers Into Rocket Architecture

Cowboy Space plans to build AI data centers directly into the second stage of its rocket, eliminating the need to discard this component after launch 1

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. Each satellite will have a mass of 20,000 to 25,000 kilograms and generate 1 megawatt of computing power from approximately 800 onboard GPUs 1

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. The system is based on Nvidia's Space-1 Vera Rubin Module, which combines an 88-core central processing unit with two Rubin graphics cards 3

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. This approach represents a first-principles departure from traditional satellite constellation models and should simplify the design process while lowering hardware costs 1

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Solar-Powered AI Data Centers Address Energy Grid Limitations

The primary motivation behind space-based data centers is the abundance of solar power available in orbit. A solar panel can generate significantly more electricity in space than on the ground because its efficiency is not diminished by atmospheric light absorption 3

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. "Earth's energy grid can't run at the pace of AI," Cowboy Space officials stated, noting that in major US markets, average grid connection lead times for new data centers can run five to seven years or more 2

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. This timing constraint has become a critical bottleneck as AI demand continues to outpace terrestrial infrastructure capabilities.

Ambitious Timeline and Competitive Landscape

Cowboy Space plans to launch its first satellite later this year to demonstrate space-to-Earth power beaming capabilities 2

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. A second mission scheduled for 2027 would include a cluster of satellites for high-speed optical communications 2

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. The company has hired veterans from across space technology firms, including former Blue Origin propulsion engineer Warren Lamont and former SpaceX launch director Tyler Grinne 1

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. Competition in this emerging sector includes rival startup Starcloud Inc., which plans to attach multiple data center modules to a single support structure with a 6.1-square-mile solar array 3

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. The company will also own its manufacturing chain and operate dedicated launch sites to accelerate deployment of its planned Stampede constellation 2

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