Galactic Resource Utilization (GRU) Space published a white paper in January outlining their ambitious plans for a combination lunar base and hotel on the Moon. They believe this plan will accelerate humanity’s transition to an interplanetary species. Authored by the founder of the startup Skyler Chan (a recent UC Berkeley graduate with experience in space hardware and software), the document critiques the current state of the space industry and proposes a private-sector-led approach centered on lunar tourism as the catalyst for broader infrastructure development. GRU Space, backed by Y Combinator, was founded last year.
Chan asserts that humanity stands at a pivotal moment where becoming an interplanetary civilization is achievable within our lifetimes. He argues that the current legacy space ecosystem relies heavily on two pillars: government-subsidized exploration (such as NASA’s Artemis program) and massive launch capabilities (e.g. the Space Launch System and SpaceX’s Starship). However, a true commercial “lunar economy” remains virtually nonexistent. The industry suffers from a stagnation cycle—companies wait for government contracts to fund development, while agencies demand proven hardware before committing funds. This creates a deadlock where advanced technologies (e.g. lunar robotics, power systems, comms) exist in isolation without real customers or demand drivers.
GRU Space rejects this dependency on slow government timelines and “customer discovery” phases. Instead, the company aims to create immediate, tangible value for people on Earth to jumpstart economic activity off-world. Their core thesis: space tourism, specifically a lunar hotel, is the fastest and most practical “wedge” to bootstrap a self-sustaining lunar economy. Chan’s proposed solution: GRU Space’s flagship project to build and operate the first hotel on the Moon, initially as a high-end tourism destination for short multi-day stays. This hotel would serve paying customers (with reservations already open for deposits ranging from $250,000 to $1 million) while simultaneously demonstrating and de-risking technologies essential for permanent lunar infrastructure. GRU’s innovations and phased approach include:
- Mission I (2029): A small ~10 kg payload delivered via a Commercial Lunar Payload Services (CLPS) lander to test core habitation technologies, particularly an inflatable structure featuring an airtight bladder, structural fabric, micrometeoroid shielding, and thermal/UV protection layers.
- Mission II (2031): Deployment of a lunar cave base using inflatable systems positioned near a lunar pit or lava tube skylight for natural radiation shielding and resource access. Although not in their current plans, this could pave the way for eventual pressurization of a lava tube for habitation, a concept that has already had preliminary studies completed and covered by SSP.
- Mission III (2032): Delivery of the first operational lunar hotel via a heavy-lift launch vehicle and lander, accommodating up to four guests initially (with plans to scale to 10 in later versions) located in scenic locals, featuring stunning views of Earth and thrilling extravehicular activities.
The initial hotel will be constructed from inflatable modules shipped from Earth. Future expansions will transition to in-situ resource utilization (ISRU)—processing lunar regolith into durable bricks or structures using automated robotic systems. This reduces launch costs dramatically and enables scalable construction of roads, warehouses, mass drivers (proposed by Elon Musk recently), and other base elements including locally sourced oxygen. GRU’s team is staffed perfectly for these technologies. Cofounder and Member of Technical Staff Kevin Cannon is a planetary geologist and an authority on ISRU. He’s been the source for several posts on SSP and will know exactly where and how to access lunar resources needed for the effort.
The lunar hotel is envisioned to be a high-end destination that generates revenue from customers coming up from Earth, while simultaneously validating ISRU, habitation and life support technologies for more expansive infrastructure.
GRU Space’s broader vision after the hotel positions the company as an architect of long-term human presence on the Moon and Mars with a technical roadmap progressing as follows:
- Solve the problem of off-world surface habitation via the hotel
- Expand to support a full base with infrastructure including roads, resource processing, and storage.
- Replicate the model for population centers on Mars for millions of people.
The approach leverages commercial transportation (e.g., from SpaceX or Blue Origin) and focuses on creating goods/services with Earth-side value (tourism experiences) to generate revenue and prove viability. This contrasts with government-led efforts by prioritizing private customers and rapid iteration.
Overall, the document combines technical roadmap details with economic philosophy, emphasizing self-reliance, revenue-driven development, and urgency in seizing the current window for interplanetary expansion. While ambitious and early-stage (with no operational hardware as of yet), it reflects a startup mindset applied to space settlement, backed by expertise in ISRU, robotics, and space systems from the founding team.
Chan concludes the white paper with a bold claim: by building the first lunar hotel, GRU Space will outflank the traditional space industry, create the initial spark for a lunar economy, and lay the groundwork for humanity’s multi-planetary future. He frames the project not merely as tourism but as a civilizational necessity—turning the Moon into a stepping stone for permanent, expanding human settlement beyond Earth. The last step in his “Top Secret” GRU Master Plan is humanity becoming a Kardashev Type III civilization! Now we know how he came up with the name!
