Aalyria, a startup that spun out of Google just a few years ago, is now valued at $1.3 billion after investors poured in fresh capital. The company announced a new funding round of $100 million this week. Investors are betting big on the company’s ability to improve how high-speed communication networks operate across land, sea, and space.
This funding lands at a critical time for the industry. The U.S. government is increasing its spending on defense technology, and officials are actively looking for alternatives to SpaceX’s Starlink. While Starlink dominates the market, governments in the U.S. and Europe worry about relying on a single provider for national security. Investors believe Aalyria offers a solution that allows different satellite systems to work together seamlessly.
The company’s flagship product is software called Spacetime. It acts like a traffic controller for networks. If a natural disaster destroys cell towers on the ground, Spacetime can redirect satellite coverage to that location in seconds rather than days. In space, the software directs groups of satellites to automatically reconfigure and fill gaps if a connection fails, ensuring the network stays online without human intervention.
Aalyria sells hardware as well. Its laser communication system, Tightbeam, can attach to ships or planes. The device transmits data through the air over distances greater than 60 miles at speeds that match the fiber optic cables used for home internet.
The core technology originated within Google as part of “Project Loon,” an initiative that attempted to use high-altitude balloons to beam internet service to remote communities. When Alphabet shut down Project Loon in 2021, the engineering team acquired the technology to launch Aalyria. Google still retains a stake in the business.
With this new cash, Aalyria plans to grow its team by at least a third over the next year. The company has already secured contracts with major partners like the U.S. Air Force, NASA, and the European Space Agency. Investors expect this funding will help get Aalyria’s systems operating on live satellites in space very soon.
