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A Startup Revolutionizing Data Centers in Space
Lumen Orbit, a pioneering startup aiming to build data centers in space, has successfully closed its recent seed round in mere days. The Redmond, Washington-based company secured an impressive $11 million funding at a valuation of $40 million, as reported by TechCrunch earlier.
Investor Interest Soars High
The deal was led by NFX, with general partner Morgan Beller joining the company’s board. Notable VCs, including Fuse.VC, Soma Capital, and scout funds from Andreessen Horowitz and Sequoia, also participated in the funding round. This significant interest is a testament to Lumen Orbit’s innovative concept of orbital data centers.
Co-Founder Philip Johnston: A Leader in Space Exploration
Philip Johnston, co-founder and CEO of Lumen Orbit, spoke with TechCrunch about the company’s mission. He emphasized that due to high investor demand, more than 200 VCs reached out to the startup, forcing them to open another SAFE round at a higher valuation.
Early Successes
Lumen Orbit has already made significant strides in its relatively short history. Founded in January, the company is building orbital data centers consisting of pods, each capable of holding compute and attaching to large solar panels in space. Their goal is ambitious: to establish multi-gigawatt compute clusters by the end of the decade.
How Lumen Orbit Works
Lumen’s technology utilizes a high-bandwidth optical laser to send information back down to Earth. This innovation has the potential to revolutionize AI scalability, as it could help companies avoid the size and power restrictions of traditional data centers on Earth while reducing costs significantly.
Benefits for AI Industry
Instead of paying $140 million for electricity, Lumen Orbit proposes an alternative: launching a satellite with solar panels for just $10 million. This not only reduces costs but also diminishes the environmental impact associated with running data centers on Earth.
A Path to Success
To validate their concept, Lumen Orbit is planning to launch a demonstrator satellite in May, equipped with Nvidia’s terrestrial GPUs. The following year, they plan to launch another test satellite that is 100x more powerful.
Johnston emphasized the importance of frequent launches with smaller changes rather than waiting years for a single massive launch. "A lot of space companies take five years to launch; we are launching it in 18 months," he said. This approach allows them to adapt and improve their technology rapidly.
The Visionaries Behind Lumen Orbit
Lumen Orbit’s co-founders, Philip Johnston and Ezra Feilden (CTO), bring a wealth of experience to the table. They envision a future where data centers are not limited by geographical constraints but can be scaled up in space, reducing costs and environmental impact.
The Journey Ahead
As Lumen Orbit continues on its path towards revolutionizing data centers, it faces numerous challenges. However, with $11 million secured from investors and a strong vision, the company is well-positioned to overcome these hurdles.
Conclusion
Lumen Orbit’s successful seed round demonstrates the market’s belief in their innovative concept. As they move forward, they have the potential to significantly impact the AI industry by providing scalable, cost-effective data centers that reduce environmental concerns.
About Rebecca Szkutak
Rebecca is a senior writer at TechCrunch, covering venture capital trends and startups. She previously covered the same beat for Forbes and the Venture Capital Journal.
