Elon Musk-helmed aerospace company SpaceX is raising $500 million at a $30.5 billion valuation to fund a satellite-based internet service, reports The Wall Street Journal.
The company is looking to launch a massive network of satellites into orbit to provide internet service for devices on the ground, which would offer companies and consumers an alternative to cellular. And while SpaceX hasn’t divulged which industries it’d target with this service, it could potentially fill a need in the IoT that would provide the company with a sizable revenue stream.
SpaceX is looking to get its Starlink internet service off the ground with the new capital. The company’s planned satellite-based communication network would require a web of thousands of satellites to be able to blanket the planet in wireless coverage.
So far, it’s received US government approval for more than 11,000 satellites in total. The company launched two test units into orbit in February to begin evaluating how its service would fare and what the company would need to do scale its operations.
A new round of funding will enable the company to ramp up testing and potentially move into the early commercial deployment, though it would likely require an additional injection of capital — beyond this $500 million — to get those satellites into orbit.
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