Space-technology startup Satlyt, led by ex-Tesla (NASDAQ:TSLA) and Google manager Rama Afullo, last week secured $25,000 through state first-in-the-nation municipal AI Incentive Program, endorsing its vision to create what the company calls “the above cloud service provider” through interconnected satellite networks.
Satlyt was selected from over 170 applicants by industry judges from International Business Machines (NYSE:IBM), CBRE Group (NYSE:CBRE), Coactive, and J2 Ventures, according to San José Mayor Matt Mahan's announcement.
Satlyt’s Founder Brings Decade of Space Technology Vision to Silicon Valley
Rama Afullo’s journey to founding Satlyt began over a decade ago with a domain purchase driven by a deep fascination with space exploration and satellite technology.
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His subsequent career trajectory through some of the world’s most innovative companies provided the foundation for Satlyt’s creation, including roles as a Starlink product manager at SpaceX, AI startup manager at Google, and Telco business lead at Tesla.
The pivotal moment came while working at SpaceX, where Afullo realized that space computing needed a more open and decentralized approach. “If Starlink is iPhone, Satlyt is Android,” Afullo writes on the company website, pointing out his vision for democratizing access to satellite data processing. This realization led him to officially found Satlyt in 2024 with a mission to build a decentralized space computing platform.
Decentralized Satellite Network Powers Edge Computing Revolution
Satlyt’s core technology centers on creating a federation of interconnected satellites that operates as a decentralized network, ensuring continuous operation without single points of failure, according to the company. The platform enables distributed data processing across multiple satellites, allowing efficient analysis of massive datasets through edge computing capabilities that reduce latency and enable real-time insights.
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Satlyt claims its proprietary distributed computing architecture allows data processing across multiple nodes simultaneously, achieving 85% processing efficiency.
The company also says its satellites form a dynamic mesh network that adapts to changing conditions and optimizes data routing, maintaining 99.9% network reliability through self-healing network topology and intelligent routing algorithms.
Unlike traditional closed satellite systems, Satlyt says it builds an open ecosystem allowing developers and businesses to create applications on the platform through comprehensive application programming interfaces, developer software development kits, and a marketplace for sharing and monetizing satellite applications.
Global Satellite Data Services Market Prepared for Massive Growth
Industry research indicates a surge in demand for satellite-based data solutions, with the satellite data services market projected to grow significantly in the coming years. Allied Market Research valued the market at $12.8 billion in 2024 and forecast it to reach $69.7 billion by 2034, reflecting a compound annual growth rate of 18.7% from 2025 to 2034.
Similarly, Grand View Research estimates the sector at $12.12 billion in 2024, expecting it to climb to $29.59 billion by 2030, with a CAGR of 16.3%.
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Why San José Put Cash Behind Early-Stage AI
Satlyt has secured backing from multiple venture capital firms, including Antler VC, Slauson & Co., NaiBAN, and XSLA Ventures, according to the company.
The $200,000 pilot program includes four grants and is structured to support early-stage AI companies with funding and access to San José's business resources.
"I often say San José is the Capital of AI — now, we're putting our money where our mouth is," Mahan said in the announcement. "From exciting new names like Coactive and Figure AI to tech titans like Adobe (NASDAQ:ADBE), PayPal (NASDAQ:PYPL), and Zoom (NASDAQ:ZM), San José has an incredibly robust network of innovators — I can't think of a better place to begin a startup journey than the Capital of Silicon Valley, and we're doing everything we can to remove barriers and make that journey easier."
The city's economic development site places the AI Start-Up Incentive Program alongside downtown office incentives that waive business taxes for two years and offer parking benefits, a package designed to draw startups into the city's core and anchor them within San José's growing AI hub.
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