Introduction
Lumen Orbithas successfully closed an oversubscribed seed round of more than $10 million, according to a source familiar with the details. This achievement makes it one of the hottest deals, if not the hottest deal, of the most recent Y Combinator batch. The Redmond, Washington-based startup is working on a groundbreaking project to build a network of data centers in space that can scale to a gigawatt capacity and be used to train large AI models.
The Company’s Mission
Lumen Orbithas has a lofty mission to revolutionize the way we process and store data. By building data centers in space, they aim to provide an efficient and sustainable solution for the ever-growing demand of computing power. The company’s focus on AI training is particularly noteworthy, as companies like Microsoft, Google, and Amazon are already exploring innovative ways to power their AI models.
The Seed Round
The seed round was extremely competitive, with multiple VCs vying for a spot in Lumen Orbithas’ cap table. This level of interest is not surprising, given the company’s ambitious goals and the significant attention it garnered from VCs during YC’s 2024 summer batch.
Partnerships and Progress
Despite being relatively new to the scene, having been founded just earlier this year, Lumen Orbithas has already made notable progress. The company is planning to launch its demonstrator satellite in 2025, in partnership with Nvidia’s Inception program. This collaboration will not only provide valuable insights into the feasibility of space-based data centers but also pave the way for future innovations.
The Data Center Crisis
The need for sustainable and efficient data center solutions is becoming increasingly pressing. As companies continue to rely on AI and machine learning, their energy consumption is expected to skyrocket. In fact, data centers are predicted to consume 9% of overall energy consumption in the U.S. by 2030. Lumen Orbithas’ innovative approach to addressing this issue has sparked significant interest among VCs.
Competitors and Challenges
Lonestar Data Holdings is another company working on a similar concept, with plans to build data centers on the moon. While there are other startups exploring space-based solutions, customer adoption remains a challenge for these companies. Venture capitalists have expressed concerns that customer adoption may be tough for Lumen Orbithas and its peers.
Founding Team
Lumen Orbithas was founded in January 2024 by Philip Johnston (CEO), Ezra Feilden (CTO), and Adi Oltean (chief engineer). The team has a strong background in the industry, with previous experience working on cutting-edge projects. Their pre-seed round of $2.4 million, led by Nebular with participation from Everywhere Ventures, Tiny VC, and Sequoia among others, demonstrates their ability to attract significant investment.
Conclusion
Lumen Orbithas’ oversubscribed seed round is a testament to the company’s innovative approach to addressing one of the most pressing issues in the tech industry. As companies continue to rely on AI and machine learning, Lumen Orbithas’ space-based data centers may hold the key to providing efficient and sustainable solutions.
Related Topics
- Exclusive
- North America
- Space
- Space startups
- Startups
- United States
- Venture capital
- Washington
- Y Combinator
Sources
This article provides an in-depth look at Lumen Orbithas’ ambitious project to build data centers in space and its potential to revolutionize the way we process and store data. With a strong founding team, significant investment, and partnerships with industry leaders like Nvidia, Lumen Orbithas is well-positioned for success.
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