Satellite Computing Takes Off with $8 Million Funding

Satlyt, a Nairobi-based space technology startup, has secured $8 million in seed funding to advance its vision of virtual data centers in orbit. The company builds software that enables satellites to process data and run AI applications using existing onboard computers.

The investment round was led by non sibi ventures with participation from TLCOM, Antler, Slauson & Co., and other investors. Satlyt will use this capital to expand its engineering team and deploy its software across more spacecraft.

Addressing Africa’s Data Center Gap

Africa currently accounts for less than 1% of global data center capacity despite experiencing rapid digital growth. The GSMA estimates that African countries need to more than double their hosting capacity by 2030 to support expanding AI demands, which could require $36 billion in new infrastructure.

Making Space Hardware Work Harder

Satlyt’s approach offers a unique solution - rather than building new data centers that cost upwards of $10 million per megawatt, the company allows existing satellite computers to handle additional workloads. This aligns with Africa’s need for digital infrastructure while addressing high construction costs.

“Our software enables operators to get more value from their existing investments in space computing,” explains Rama Afullo, Satlyt’s founder and CEO.

How It Works

Satlyt’s technology allows satellites to run third-party applications alongside their primary functions. Similar to how companies use cloud servers instead of building their own data centers, application developers can deploy code on orbiting platforms without owning spacecraft themselves.

For example, Google recently used Satlyt’s software to run its Gemma AI model on a satellite that analyzed system logs and identified errors while the spacecraft was out of range of ground stations.

Satlyt is also collaborating with NASA through its Small Business Technology Transfer program to develop delay-tolerant networking solutions for space applications. The company envisions connecting computing resources across different satellites, creating distributed virtual data centers in orbit.