Meet the startup testing space-based solar farms that use lasers to send power to Earth

California-based startup Aetherflux, led by CEO Baiju Bhatt (Robinhood co-founder), is advancing plans to deploy low-orbit satellites next year via SpaceX to beam solar power to Earth using infrared lasers. Having secured $60 million from investors including Breakthrough Energy Ventures and Andreessen Horowitz, the company's initial strategy targets the U.S. Department of Defense to scale operations and drive down costs for eventual broader market entry. Although the technology is currently expensive, Aetherflux anticipates cost reductions through advancements in launch and component technology, operating within an emerging, competitive space-based solar energy sector.

Analysis

Private startup Aetherflux is advancing a high-concept energy solution, aiming to beam solar power from low-orbit satellite constellations to Earth via infrared lasers. The venture, led by Robinhood co-founder Baiju Bhatt, has secured $60 million in funding from prominent VCs including Breakthrough Energy Ventures, Andreessen Horowitz, and Index Ventures, signaling strong investor confidence in its long-term, disruptive potential. The company's go-to-market strategy is centered on an initial contract with the U.S. Department of Defense, a move designed to secure a large-scale customer to prove the technology and drive down costs before targeting broader markets. While the concept is backed by a planned SpaceX launch next year, Aetherflux's CEO acknowledges the primary challenge is making the technology cost-competitive with existing energy sources. Success hinges on future advancements in launch technology and component maturation. The company operates in an emerging but competitive field, with other startups and a state-backed Chinese program also pursuing space-based solar power.

Key Decisions for Investors

• Private market investors should view Aetherflux as a long-horizon, high-risk venture in the deep-tech and energy transition sectors, where the initial Department of Defense contract serves as a key de-risking milestone for future commercial viability.
• Investors exposed to the public energy, utility, and defense sectors should monitor the progress of Aetherflux and the broader space-based solar industry as a potential long-term disruptive technology that could reshape energy grids and military logistics.
• The primary risk is execution and the ability to achieve cost-competitiveness; therefore, tracking advancements in launch costs and key component efficiencies will be critical for assessing the investment thesis and the sector's overall viability.