Silicon Valley Startup CScale Raises $145M for Fiber-Optic AI Networking

CScale, a Silicon Valley startup, has raised $145 million in venture capital to develop AI networking technology. The company is working on connecting AI chips with fiber-optic cables instead of traditional copper wires.

The funding round was led by Atreides Management, Valor Equity Partners, and Premji Invest, with existing investors Sutter Hill Ventures and Maverick Silicon also participating.

CScale's CEO, Martin Lund, who previously worked at Cisco Systems, declined to give specifics about the company's technology. However, he stated that it will integrate lasers onto chips in a way that does not interrupt data flow when the lasers fail.

Lund said CScale plans to ship its chips by 2028 and is using proven technologies in a novel way to preserve the trusted fiber technology that has been shipping for many years.