Cowboy Space Corporation is tackling the growing demand for AI compute by venturing into space data centers. However, a significant hurdle remains: the limited availability and high costs of rockets capable of deploying these centers into orbit.
Many companies are pinning their hopes on SpaceX's Starship, which is expected to conduct its twelfth test flight soon. Yet, it may take years before the spacecraft becomes commercially accessible due to SpaceX's commitments to its satellite operations. Similarly, Blue Origin's New Glenn rocket has faced setbacks, including a failed satellite launch.
As a result, some initiatives, like Google Suncatcher, are looking at mid-2030s timelines, while others, such as Starcloud, are focusing on edge processing for space sensors.
New Rocket Development: Cowboy Space is taking a different approach by establishing its own rocket program. CEO Baiju Bhatt announced plans for the first launch by the end of 2028, supported by a recently closed $275 million Series B funding round, valuing the company at $2 billion. This round was led by Index Ventures, with participation from Breakthrough Energy Ventures, Construct Capital, IVP, and SAIC.
Bhatt, who co-founded Robinhood, initially launched the startup in 2024 under the name Aetherflux, intending to harness solar energy in space. The pivot to space data centers necessitated a shift towards developing rockets to support their operations.
After discussions with various launch providers, Bhatt found that the existing capacity was insufficient for scaling an orbital data center business effectively. He noted that while new rockets are being developed, the market remains constrained for the next few years.
Competitive Landscape: By developing its own rockets, Cowboy Space will compete directly with established players like SpaceX and Blue Origin. Bhatt believes that the market for space data centers is large enough to accommodate multiple successful entrants, especially as demand for AI capabilities increases.
Innovative Design: Cowboy Space's rockets will feature a unique design that integrates data centers into the second stage of the launch vehicle. This approach simplifies the design process and allows for a more efficient launch of satellites, which are expected to weigh between 20,000 and 25,000 kilograms and generate 1 MW of power for nearly 800 GPUs.
The company plans to hire experienced professionals from the space industry and develop its own rocket engines, addressing one of the most complex aspects of launch vehicle design. Key development areas include testing and manufacturing facilities for their rockets.
The rebranding to Cowboy Space reflects the company's mission to "power humanity from the high frontier," with Bhatt humorously noting it gives him a reason to wear a cowboy hat and grow a mustache.
