Silicon Valley Startup CScale Raises $145 Million for Optical Chip Technology

CScale, a Silicon Valley startup previously known as CSpeed, has secured $145 million in funding from investors including Nvidia and Intel. The company is developing technology to connect AI processors using optical links instead of copper wiring.

The raise puts CScale in the midst of an industry push to replace copper cabling with optical alternatives. This effort aims to reduce heat production in data center servers, which can be intense due to processor clustering. Established companies and young ventures are investing billions in this area, but lasers used for optical connections have a failure rate.

CScale's approach involves building lasers directly onto its chips, designed so that data keeps flowing even when a laser breaks down. The company's chief executive, Martin Lund, an ex-Cisco hardware veteran, promises to begin shipments by 2028.