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Los Alamos Today
By the People, for the People
California Startups Thrive Despite Challenges
Space Kinetic aerospace firm chooses New Mexico over California for expansion
Apr. 17, 2026 at 11:19am
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A precision-engineered satellite component from Space Kinetic's advanced propulsion systems symbolizes the company's relocation to New Mexico's renowned research hub.Los Alamos TodayAfter spinning out of UC Berkeley in 2022, the aerospace startup Space Kinetic decided to expand its operations to New Mexico's Los Alamos National Laboratory rather than staying in California. The company's founder cited the need to hire new talent and embark on new programs as the key reasons for the move, despite California's reputation as a hub for tech and innovation.
Why it matters
This story challenges the narrative that California is losing its luster as a destination for businesses and startups. While some high-profile companies have left the state, many others continue to thrive and grow, even if they choose to expand outside of California for certain needs. The decision by Space Kinetic highlights the complex factors that go into where companies decide to locate and expand their operations.
The details
Space Kinetic, an aerospace startup that was spun out of UC Berkeley in 2022, has decided to expand its operations to New Mexico's Los Alamos National Laboratory rather than staying in California. One of the company's founders cited the need to hire new talent and embark on new programs as the key reasons for the move, despite California's reputation as a hub for tech and innovation.
- Space Kinetic was spun out of UC Berkeley in 2022.
The players
Space Kinetic
An aerospace startup that was spun out of UC Berkeley in 2022.
Los Alamos National Laboratory
A famous national laboratory located in New Mexico that is known for its work in advanced technologies.
The takeaway
This story highlights that despite the narrative of California losing its appeal, many startups and businesses continue to thrive and grow in the state. The decision by Space Kinetic to expand to New Mexico shows that companies weigh a variety of factors when deciding where to locate and expand, and California remains an attractive destination for innovation and talent.
