Aetherflux reportedly raising Series B at $2 billion valuation

Aetherflux, the innovative space solar power startup founded by Robinhood's Baiju Bhatt, is reportedly negotiating to secure between $250 million and $350 million in its Series B funding round, positioning the company's valuation at approximately $2 billion.

The Wall Street Journal was the first to disclose this funding initiative, indicating that Index Ventures is spearheading the investment. Since its inception in 2024, Aetherflux has raised around $80 million. The company has chosen not to comment on the reports.

Recently, Aetherflux has redirected its strategic focus towards the application of its power-generating technologies in space data centers, moving away from its original concept of transmitting electricity to Earth via lasers. This evolution aligns Aetherflux with other emerging space enterprises such as SpaceX, Blue Origin, and Starcloud, all of which are pursuing innovative architectures for distributed computing in space.

In a lighthearted exchange with TechCrunch last week, Bhatt remarked, “Let the record show we never lifted our pivot foot — it wasn’t a travel.” He elaborated that the realization dawned about a year ago that, to optimally power AI using their technology, it would be more beneficial to house the chips in space rather than transmitting power back to a terrestrial data center.

While Aetherflux intends to maintain its research in laser power transmission via a satellite bus developed by Apex Space, the launch of the company’s inaugural data center satellite is anticipated in 2027. “Our goal is to build something that competes with terrestrial economics,” Bhatt emphasized.

The journey ahead is poised to be challenging, as highlighted in recent analyses of the economic factors impacting orbital AI initiatives.