San Francisco Startups Advance Satellite Technology for Data and Communications

Several startups in San Francisco are working on satellites to expand access to space-based data collection and communications. Basalt Space, led by CEO Max Bhatti, assembled its first satellite in March 2026 to meet a launch deadline. The team worked extended hours in a controlled environment within leased apartments in the city's Lower Nob Hill neighborhood.

Employees at Basalt, all in their 20s, live and work in these spaces equipped with basic amenities. The company seeks to provide clients with their own satellite constellations, similar to cloud computing services. This approach would allow direct tasking of satellites without intermediaries.

Faster satellite data could assist farmers in detecting pests and diseases early. It could also support news organizations and investors in monitoring migration and trade. Basalt plans to use AI for satellite operations instead of human oversight. Manufacturing and launch costs for satellites have decreased over the past five years.

The Trump administration recently relaxed some regulatory hurdles, which Bhatti stated has benefited the industry. The ongoing war in Iran has highlighted the need for unrestricted access to satellite imagery, as some providers have limited feeds from the Middle East.

Basalt proposes that for a monthly fee in the thousands of dollars, customers could lease or own constellations. This would prevent interruptions in data access. However, the startup acknowledges potential future regulatory challenges.

Questions remain about customer demand for these services. Previous satellite startups focused on climate data but primarily served militaries. Concerns include space junk, light pollution, and surveillance implications. Approximately 15,000 satellites orbit Earth currently, with forecasts predicting up to 75,000 by 2030.

Satellite launch attempts increased from 2009 to 2016, with about half failing due to rocket or satellite issues. Improvements in launch vehicles, such as those from SpaceX, and component hardening have since enhanced reliability. Global spending on satellite manufacturing and data services reached $130 billion in 2024, according to an industry trade body.

Basalt is among eight companies identified in the San Francisco Bay Area producing satellites.

Xona Space Systems opened a 25,000-square-foot production facility last month. CEO Brian Manning stated the company aims to provide an alternative to GPS with improved accuracy and resistance to spoofing and jamming. Xona has one satellite in orbit and plans more launches, with tests underway by GPS receiver manufacturers and U.S. government agencies.

Earthtraq plans to offer positioning, navigation, and timing via radio signals using small trackers. Isobel Porteous, head of business development, said this would enable tracking of items and animals previously impractical due to cost or size. Muon Space builds constellations for customer projects, such as detecting GPS interference and monitoring wildfires.

CEO Jonny Dyer noted that a satellite with infrared sensors and high-speed internet now costs millions, down from $1 billion previously. The company has completed 15 satellites.