Alternative Investing Report - April 2, 2026

*as of 4/1; Sources: S&P, BTC, FTSE, DJRE, GOLD

Two startups this week raised big money to attempt to build data centers in space - Aetherflux, which is reportedly raising $250 million at a $2 billion valuation, and Starcloud, which raised $170 million at a $1.1 billion valuation. Aetherflux had previously been focused on generating solar power in space for use on Earth, but is pivoting towards space data centers. Starcloud reached unicorn status just 17 months after graduating from YCombinator. They join existing space companies SpaceX and Blue Origin in the race to find cheaper and more efficient ways to generate the power needed for the AI industry.

➨ TAKEAWAY: It was only recently that Elon Musk announced that SpaceX would be looking into building data centers in space, and now there are multiple startup unicorns doing the same. One potential blocker is that the companies need SpaceX’s Starship rocket to deliver their infrastructure to space, and it has not been reliably launching safely. It looks like 2028 or 2029 will be the soonest that data centers can start operating in space, but investors willing to take the risk can try to get in while valuations are relatively low.

📊 Private job growth: The private sector added 62,00 jobs in March according to ADP’s most recent report, better than expected but slightly below February’s revised total. Businesses with fewer than 50 employees added 85,000 jobs, while medium and large businesses both saw declines.

🚀 Whoop’s valuation triples: The wearable fitness healthtech startup raised $575 million at a $10.1 billion valuation, nearly triple its last valuation of $3.6 billion from 2021. The round attracted investment from notable athletes such as LeBron James, Cristiano Ronaldo and Reggie Miller.

🪙 Quantum threat to Bitcoin: Google announced that its quantum computing technology is advancing faster than expected and could break Bitcoin as soon as 2029, adding urgency for cryptocurrencies to migrate their blockchains to post-quantum cryptography.

🤖 AI inference stays hot: The Korean startup chipmaker Rebellions became the latest AI inference company to raise a massive VC round, netting $400 million. Other notable raises this year have come from Cerebras, Etched, and MatX.

🏢 Hyperscale data center fund: The data center firm Digital Realty closed on a $3.25 billion fund to develop and own hyperscale data centers in top-tier metro areas including the Bay Area and Northern Virginia.

💵 Private credit on the blockchain: Valinor, a startup founded by former Blackstone employees, raised $25 million to put private credit on the blockchain, a step to potentially bring more liquidity to the asset class.

According to a new study, half of all U.S. adults under 30 have reported talking to an AI chatbot for relationship advice, and a third of teens have talked to AI instead of humans for “serious conversations.” However, the tendency of AI to flatter and validate users is leading them to give damaging advice in these situations, and this is leading to bad results. Sycophancy has significant risks, and can lead to a greater chance of self-harm and suicide. Unfortunately, AI chatbots are incentivized to tell users what they want to hear in order to increase engagement, meaning that companies have no incentive to change anything. One positive development is that OpenAI is no longer pursuing its “X-rated” version of ChatGPT after investors and employees voiced concerns. Eventually, though, either OpenAI or another company will pursue that market, and there are likely to be a host of negative consequences for users.