Tomorrow.io raises $175 million at over $1 billion valuation to build AI-driven weather satellite network
DeepSky constellation aims to replace aging government infrastructure and close global forecasting gaps.
Israeli-founded Tomorrow.io, which develops advanced weather forecasting systems, has raised $175 million at a valuation of over $1 billion. The round was led by Stonecourt Capital and HarbourVest and is intended to accelerate deployment of DeepSky, an AI-driven weather satellite network. The new space infrastructure is designed to enable more accurate atmospheric forecasting than ever before, while closing data gaps in regions that remain underserved by aging government systems. With this round, the company’s total funding reaches approximately $500 million. Tomorrow.io, which is headquartered in Boston, employs around 150 people in Israel, and its annual recurring revenue is estimated at about $100 million ARR.
Although modern AI-based forecasting systems have improved dramatically, they remain constrained by the quality and frequency of the data they receive. DeepSky aims to solve this limitation through a constellation of low-Earth-orbit (LEO) satellites equipped with advanced sensors that provide high-frequency refresh rates and continuous global coverage.
The company, formerly known as ClimaCell, was founded in 2016 by three Israeli entrepreneurs: Shimon Elkabetz, Rei Goffer and Itai Zlotnik. All three are veterans of elite IDF units and established the company out of the belief that accurate weather intelligence is essential for operational, economic, and national-security decision-making.
“We are an American company with a small development center in Tel Aviv, while most of our operations are based in the United States,” Goffer told Calcalist. “Today we are the fastest-growing company in the weather sector and operate the largest fleet of weather satellites in the world. We generate roughly three times more atmospheric data than the rest of the industry combined.
“Our forecasting models are already the most advanced globally, and DeepSky represents a quantum leap in satellite capabilities. Until now, satellites were roughly the size of a box; DeepSky satellites will be closer to the size of a car, carrying between three and five sensors each, with a significantly larger overall constellation. We plan to complete deployment by the end of the decade, with dozens of satellites in orbit.
“The United States is undergoing a major shift toward privatization of weather infrastructure. For decades this domain was dominated by government systems, but it is rapidly becoming a service-based market. Many U.S. government satellites are nearing the end of their operational life, and without alternatives there could be a decline in forecast quality. Today, about 95% of the data feeding global forecasting models comes from just ten satellites, six of which will retire before the end of the decade. Replacing them through traditional programs would take years and we are building the solution.”
Pitango, one of Tomorrow.io’s Israeli investors, also highlighted the strategic importance of the shift. Aaron Mankovski, Managing Partner at Pitango, said: “In the past 15 years we witnessed a revolution in which a private company like SpaceX began replacing NASA in launching spacecraft. We expect a similar transformation in weather data over the coming decade, and Tomorrow.io is leading it with 13 satellites already in space and the most accurate forecasting capabilities available in Israel and globally.”
