Cowboy Space raises $275M to build rockets for orbital data centers

Cowboy Space Corporation has successfully secured $275 million in a Series B funding round, achieving a post-money valuation of $2 billion. This round was spearheaded by Index Ventures, with contributions from Breakthrough Energy Ventures, Construct Capital, IVP, and SAIC. Founded in 2024 by Baiju Bhatt, co-founder of Robinhood, the company initially started as Aetherflux, aiming to transmit solar energy from space. However, it shifted focus to constructing orbital data centers for AI computing but encountered limitations in launch capacity from current providers. Consequently, Cowboy Space is creating its own rocket program, with its inaugural launch anticipated before the end of 2028. The design will integrate data centers into the rocket's second stage, echoing the first US satellite, Explorer 1. Each satellite is projected to weigh between 20,000–25,000 kg, produce 1 MW of power for nearly 800 GPUs, and necessitate a rocket more powerful than SpaceX's Falcon 9. The company has recruited former Blue Origin propulsion engineer Warren Lamont and ex-SpaceX launch director Tyler Grinne, and plans to develop its own rocket engine along with facilities for testing, manufacturing, and launching. Bhatt emphasizes the urgent demand for AI computing and the scarcity of terrestrial solutions, which drives the need to compete directly with SpaceX and Blue Origin.