CScale Secures $145 Million for Optical Networking Tech

Silicon Valley-based startup CScale has secured $145 million in venture capital to develop optical connectivity technology for AI data-centre infrastructure. The funding round, led by Atreides Management, Valor Equity Partners, and Premji Invest, includes strategic investors Nvidia and Intel.

The company aims to replace copper connections between AI chips with optical links, which can reduce heat generation and increase efficiency. CScale's CEO, Martin Lund, stated that the technology uses proven technologies in a novel way, preserving the same trusted fibre technology that has been shipping in the industry for years.

The startup plans to ship its chips by 2028 and has raised $188 million in total funding to date. The new capital will support the development and commercialisation of CScale's optical interconnect technology.