As hyperscalers build out data centers around the world, they need to move the bits back and forth, and that often relies on a somewhat brittle network of undersea fiberoptic cables crisscrossing the oceans. Those cables are tricky to access and repair, much less install. Radio transmissions don't have the bandwidth to replace them. But now, maybe lasers could do the job.
Endeavour Optical Networks (EON), a startup founded in May that emerged from stealth on Tuesday with $10.75 million in seed funding from General Catalyst and Andreessen Horowitz, is betting on that plan. The co-founders, CEO Charlie Horowitz and CTO Tyler Presser, aim to launch a network of laser-equipped spacecraft to link data centers from orbit.
Most satellite communications networks, even those that provide broadband internet service, aren't robust enough to carry data at 200 terabits a second or more, the speed of undersea fiber. However, more powerful satellites and advances in optical technology are making space-to-ground laser communications more feasible. NASA used laser comms to beam back data from its most recent Moon mission, while private space companies including York, Kepler, and Cailabs have demonstrated links between Earth orbit and the ground at a throughput of 2.5 Gbps. EON's starting goal is much bigger: 2.4 terabits per second, which will require solving one of the biggest problems in laser comms — how the signal is distorted by the atmosphere, particularly when clouds block the way.
EON intends to build a network of about 20 satellites, each able to provide a dedicated link between two continents, with the initial fleet providing 24-hour coverage for early customers. The startup is talking to hyperscalers and AI labs, focusing on underserved or expensive routes: lengthy ones like France to Australia, or routes without extensive existing infrastructure, like crossing between Africa and South America.
First, EON will use its seed round to build out an optics lab, hire engineers, and perform ground tests ahead of a demo satellite expected around the end of 2027. Horowitz expects that spacecraft to offer the highest optical downlink throughput yet seen — at least 800 gigabits and perhaps a terabit. The company plans to buy powerful off-the-shelf satellite buses, like those made by Apex Space, Horowitz's previous employer.
They aren't the only ones chasing this problem: Blue Origin has announced TeraWave, a 5,048-satellite network aiming for speeds of up to 6 Tbps. "We have one rule at the company: no physics problems," Horowitz says. "There's a market that exists today that we can go serve... more data is moving terrestrially than ever."
