In a bid to solve the looming traffic jam in low-Earth orbit, Xi'an-based CasSpace Star (Zhongke Tianta) announced it has closed a nearly RMB100 million (US$14 million) Series A+ funding round.
The investment, led by Shaanxi Wenrun Material Intelligence Venture Capital, marks a strategic pivot for the company as it transitions from a pure-play software provider into a vertically integrated "hardware-plus-software" powerhouse. The fresh capital is earmarked for the mass production of laser communication terminals and the upgrading of the industry’s first specialized AI large language model designed for satellite management.
Born out of the prestigious Xi'an Institute of Optics and Precision Mechanics of the Chinese Academy of Sciences (CAS), CasSpace Star functions as the commercial vehicle for some of China’s most sensitive aerospace intellectual property. Its core team, veterans of over a dozen national space missions, is addressing a critical bottleneck in the "New Space" race: the sheer volume of data generated by the "Guowang" and "G60" megaconstellations. As the "nervous center" of satellite operations, the company’s AI model is designed to automate station-keeping and data processing, tasks that are increasingly beyond the capacity of human operators as thousands of new satellites enter orbit.
The most significant portion of the new funding will support the trial production of laser communication lines. Unlike traditional radio frequency (RF) links, laser communication offers vastly higher bandwidth and improved security, making it the preferred "neural network" for high-speed inter-satellite links. By leveraging CAS-derived research, CasSpace Star is positioning itself as a primary supplier for the infrastructure of the International Lunar Research Station (ILRS) and China's domestic satellite internet. For Western analysts, this move signals that China is successfully industrializing laboratory-grade quantum and optical research into scalable, battlefield-ready hardware.
The funding round also underscores the critical role of "patient capital" in Shaanxi province, an inland aerospace hub that competes directly with coastal centers like Hainan. The involvement of state-backed vehicles like Xi'an Financial Investment and Shaanxi Financial Investment highlights Beijing’s "all-of-nation" approach to nurturing "New Quality Productive Forces." While American startups often rely on volatile private equity cycles, CasSpace Star is anchored by provincial and academic institutions that view space infrastructure as a long-term sovereign asset rather than a quick exit.
As CasSpace Star prepares to flip the switch on its laser communication production line, the broader implications for the U.S. Space Force and private giants like Starlink are clear. China is no longer content with just launching rockets; it is building the sophisticated, AI-driven management layer and high-bandwidth optical links necessary to command a modern, networked orbital fleet. If successful, CasSpace Star could become the primary architect of the digital backbone connecting China’s future lunar bases and global satellite networks, ensuring that Beijing’s "Space Silk Road" is powered by proprietary, state-backed technology.