Satlyt Raises $8M to Build Middleware for AI in Space, Launches Software on SpaceX Rocket

Former Google and SpaceX engineer Rama Afullo aims to create an 'Android for orbital data centers'

By LineZotpaper
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Satlyt, a startup co-founded by a former Google and SpaceX product manager, has raised $8 million in seed funding to develop software that lets satellites run AI models collaboratively in orbit. The company's software is set to launch Thursday on a SpaceX rocket alongside the first prototype for Google's space data center effort, Project Suncatcher.

Rama Afullo, a Kenyan American engineer, previously worked in Google's cloud computing business before a brief stint at SpaceX's Starlink network in 2024. He told TechCrunch he tried to pitch the idea of orbital data centers internally at both companies but was turned down. After leaving SpaceX, he co-founded Satlyt, which has headquarters in Sunnyvale, California, and Nairobi.

Unlike SpaceX, Google, or startups like Starcloud and Cowboy Space Company, Satlyt is not building its own spacecraft. Instead, it is creating software to operate AI models on satellites, comparing its approach to platforms like VMWare and Snowflake, which let users run complex software without managing the underlying infrastructure.

"The folks like SpaceX who are doing orbital data centers — if they are the iPhone, we'll build Android as a horizontally integrated, open ecosystem," Afullo said.

Satlyt has already flown its software on two demonstration missions. Earlier this year, it deployed Google DeepMind's Gemma AI model on a spacecraft operated by Momentus. The model reduced the size of a transmission about onboard software errors by more than 60%. Afullo says such efficiencies can save satellite operators hundreds of thousands of dollars per year by reducing the need to send data back to Earth, or downlink, which is expensive and slow.

This week's launch will put Satlyt's software to work on a spacecraft built by TakeMe2Space, an Indian startup that builds computing hardware for satellites. The mission has three customers: NASA, which is paying to test protocols for cloud computing in space; Stellerian, a startup focused on space surveillance that wants to test image processing workloads; and TakeMe2Space itself, which aims to show its satellite can host other companies' software.

The company's next project is to demonstrate a shared computing system spanning two different satellites, expected next year. If successful, Satlyt could become a third-party provider of a compute cloud in orbit. "The way to think about it is that we turn your satellite into a revenue-generating managed service," Afullo said.

Satlyt's seed round was led by Houston-based Non Sibi Ventures. Partner Bernard Harris, a former NASA astronaut, helped ground the firm's conviction in the novel space-based business.

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Analysis

Why This Matters

  • AI processing in orbit reduces costly downlink transmissions, potentially saving satellite operators hundreds of thousands of dollars per year per spacecraft.
  • Enables real-time decision-making for applications such as space surveillance and cloud computing without relying on ground-based latency.
  • If Satlyt's multi-satellite cloud succeeds, it could create a shared computing infrastructure in space, opening new revenue models for satellite owners.

Background

Orbital data centers are gaining traction as SpaceX, Google, and other startups invest in space-based computing. Currently, most satellites depend on ground controllers to diagnose problems and process data. Running AI models on the spacecraft itself offers significant efficiency gains, but the lack of high-powered GPUs in orbit limits what is possible. Satlyt aims to fill a middleware niche, providing software that works across different satellite hardware, similar to how VMWare virtualized servers or Snowflake abstracted data warehousing on Earth.

Key Perspectives

Rama Afullo (Satlyt CEO): Sees an opportunity to build an open, horizontally integrated software platform for satellite computing. He argues that satellite operators can turn their spacecraft into revenue-generating assets without needing to build their own cloud infrastructure. SpaceX and Google: Both companies are developing their own orbital data center hardware. Satlyt's software could complement these efforts, or compete if they pursue proprietary ecosystems. Critics and skeptics: High-powered GPUs remain rare in orbit, and the power and thermal constraints of small satellites may limit the complexity of AI models that can be deployed. Satlyt's near-term focus on lower-intensity workloads like anomaly detection and image processing is pragmatic, but scaling to more demanding tasks will be challenging.

What to Watch

  • The success of this week's launch on the TakeMe2Space satellite, with NASA, Stellerian, and TakeMe2Space as customers.
  • Satlyt's planned multi-satellite cloud demonstration next year, which would validate its ability to create a shared computing network in space.
  • Adoption by major satellite operators and potential partnerships with hardware builders like TakeMe2Space.

Sources

Zotpaper

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