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Google Spinout Aalyria Achieves $1.3 Billion Valuation in Series B Round

February 23, 2026

LIVERMORE, Calif. — In an announcement released Monday, February 23, 2026, the aerospace communications firm Aalyria confirmed it has secured $100 million in Series B funding, propelling the company to a $1.3 billion valuation.

The round was led by Battery Ventures and J2 Ventures, with participation from DYNE and existing investors.

Aalyria, which spun out of Google (Alphabet) in September 2022, will utilize the capital to expand its workforce by one-third and accelerate the commercialization of its software-defined networking and laser hardware. The company is positioning itself as the “digital cartilage” of the emerging space economy, providing the connectivity layer required to link disparate satellite constellations, aircraft, and terrestrial networks.

Orchestrating the “Network of Networks”

Aalyria’s primary value proposition rests on two technologies originally developed over a decade at Google:

  • Spacetime (Software): A temporospatial software-defined networking (SDN) platform that maintains a planetary-scale digital twin of moving assets. It uses AI to optimize wireless topologies in real-time, predicting disruptions caused by weather or orbital mechanics to autonomously reroute data.
  • Tightbeam (Hardware): An advanced coherent light free-space optical (FSO) terminal capable of delivering speeds of 100 Gbps through hundreds of kilometers of atmosphere. Tightbeam is designed to be “plug-and-play” with Spacetime, allowing for high-capacity, low-probability-of-intercept (LPI) links.

Defense and Civil Space Milestones

The funding follows a series of high-profile government wins, most notably a contract with the U.S. Air Force Research Laboratory (AFRL) announced on January 22, 2026. Under the Space Data Network Experimentation (SDNX) program, Aalyria is demonstrating how Spacetime can integrate government, commercial, and allied satellites into a single “mission-tailorable” fabric.

Additional key partnerships include:

  • NASA: Enhancing the efficiency and responsiveness of Earth Observation (EO) data delivery.
  • European Space Agency (ESA): Building an O-RAN compliant platform to bridge 5G and 6G terrestrial and non-terrestrial networks.
  • Rivada Space Networks: Orchestrating the laser-linked 600-satellite LEO constellation.
  • Telesat Lightspeed: Providing the control plane for the $3.5 billion LEO constellation’s network management.

Executive Perspective

“We started Aalyria to build what space has been missing: a true communications and networking layer that scales with human and market demand,” said Chris Taylor, CEO of Aalyria. “This funding accelerates our path to becoming that ubiquitous control plane: the digital cartilage that connects thousands of independent satellites, aircraft, ships, fiber, and ground stations into a single, intelligent network that can route around failures and optimize for mission priorities.“

Operational Outlook: Scaling the Digital Control Plane

With the infusion of $100 million, Aalyria is moving from pilot demonstrations to full-scale commercial and defense deployments. The company’s London-based European hub is expected to play a central role in its 5G NTN business, while its Livermore headquarters focuses on scaling the production of Tightbeam terminals.

By the end of 2026, the company aims to have integrated its Spacetime platform into at least three major commercial LEO constellations and multiple “Hybrid Space Architecture” prototypes for the U.S. Department of War.

Filed Under: Business & Finance Tagged With: Featured

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