Google spinout Aalyria valued at $1.3 billion as investors pour into space-based communications

In 2022, Google spun out a project focused on high-speed communications networks into a startup called Aalyria. Less than four years later, Aalyria is being valued by investors at $1.3 billion in a new funding round, reflecting soaring demand for reliable, speedy telecommunications.

Aalyria’s software helps networks deliver better service across land, at sea and in space. Its $100 million in fresh funding lands as the U.S. government bolsters its spending on defense technology and national security satellites, and as the Trump administration seeks to outpace China.

SpaceX’s Starlink has been snapping up government contracts, and gaining popularity with consumers, especially in areas that aren’t well served by traditional high-speed internet. Rivals like Eutelsat, Amazon and others are investing heavily in their own services.

Google is retaining a stake in Aalyria. Battery Ventures led the new funding round, joined by firms…