Satlyt Raises $8 Million to Build an Open AI Cloud Across Satellites
Satlyt raises $8 million to run AI across satellites, cut costly downlinks and test a two-satellite orbital cloud in 2027 after two demonstration missions.
Summary
Former Google cloud engineer and SpaceX Starlink product manager Rama Afullo co-founded Satlyt after both companies rejected his orbital computing pitch. Headquartered in Sunnyvale, California, and Nairobi, Satlyt raised an $8 million seed round led by Houston-based Non Sibi Ventures. Rather than build spacecraft like SpaceX, Google, Starcloud and Cowboy Space Company, Satlyt is developing an open software layer, comparable to VMware or Snowflake, that runs AI across different operators’ satellites. On Thursday, October 1, 2026, its software is scheduled to launch on a SpaceX rocket aboard TakeMe2Space hardware, alongside Google’s first Project Suncatcher space data center prototype.
Satlyt has completed two demonstrations, including deploying Google DeepMind’s Gemma model on a Momentus spacecraft. Gemma reduced an onboard software-error transmission by more than 60%, which Afullo says could save hundreds of thousands of dollars per satellite annually by limiting slow, expensive downlinks. The TakeMe2Space mission will test NASA cloud protocols, Stellerian surveillance-image processing and third-party software hosting. Satlyt plans a two-satellite cloud demonstration in 2027, despite few powerful GPUs currently operating in orbit. Non Sibi partners Bernard Harris, a NASA astronaut for more than 20 years, and Kent Lucas backed a model that can grow with satellite launches without requiring full orbital data centers, whose economics and launch capacity remain uncertain. Afullo aims to reach 20% of satellites by 2030 and turn spacecraft into revenue-generating managed services.
Positives
- $8 million in seed funding gives Satlyt capital to develop its cross-platform orbital AI software.
- Google DeepMind’s Gemma reduced an onboard error transmission by more than 60% during a Momentus demonstration.
- Hundreds of thousands of dollars per satellite could be saved annually by reducing slow, costly downlinks.
- NASA, Stellerian and TakeMe2Space will test cloud protocols, image processing and third-party software hosting on the new mission.
- A two-satellite demonstration planned for 2027 could establish Satlyt as a third-party orbital cloud provider.
Risks & concerns
- Few high-powered GPUs currently operate in orbit, limiting the workloads Satlyt can address today.
- Orbital data centers face uncertain economics and a launch bottleneck, according to investor Kent Lucas.
- Satlyt must prove in 2027 that separate satellites can function as one shared computing cloud.
- Google and SpaceX previously rejected Rama Afullo’s orbital computing proposal before he founded Satlyt.