Programmable networking chip startup Xsight Labs raises $300M
Israeli network chip startup Xsight Labs Ltd. said today it has closed on a $300 million funding round that brings its valuation to $2.8 billion. It’s planning to use the funds to help its programmable Ethernet switches and 800-gigabit data processing units push deeper into cloud and artificial intelligence networks.
Today’s round was led by Fidelity Management & Research Co., and saw participation from Aliya Capital Partners, Atreides Management, Artisan Partners, Battery Ventures, Diagonal Capital, Intel Capital, Key1 Capital, Maverick Capital, Sienna, T. Rowe Price, Union Group and Valor Equity Partners..
Investors are making a fairly straightforward bet on Xsight. They believe AI data center networking will balloon into a $150 billion market by 2028, and Xsight’s chips, which prioritize power efficiency and programmability, are positioned to capture a meaningful slice of that growth
Xsight, founded in 2017 and based in Tel Aviv, develops two key components that are used in data center networks – the E1 data processing unit or DPU and the X2 Ethernet switch, which are both designed specifically for AI connectivity. The company’s calling card is power efficiency, with its chips consuming under 200 watts for a 12.8 terabit-per-second switch. It also emphasizes customer-driven software extensions, making its chips programmable rather than fixed-function.
