TAMPA, Fla. — A Los Angeles-based startup has raised $5 million to fund an in-orbit computing demonstration next year, ahead of plans to deploy more than 100,000 orbital data centers to meet surging demand for AI infrastructure.

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Jason Rainbow writes about satellite telecom, finance and commercial markets for SpaceNews. He has spent more than a decade covering the global space industry as a business journalist. Previously, he was Group Editor-in-Chief for Finance Information Group,...