CScale raises $145 million for AI chip networking

CScale, a Silicon Valley startup building fiber-optic connections for AI chips, has raised $145 million in venture capital with backing from Nvidia and Intel. The company, formerly known as CSpeed, is led by CEO Martin Lund, who left Cisco Systems earlier this year after overseeing chip and hardware systems for the networking company.

The funding comes as companies race to replace copper cables that link chips inside AI data center servers with optical connections. Copper links are fast and reliable but have limited reach, pushing chip designers such as Nvidia and Advanced Micro Devices to place processors tightly inside servers and rely on complex liquid cooling to manage heat.

CScale is keeping details of its technology limited, but Lund said the company will integrate lasers onto chips in a way that avoids interrupting data flow when lasers fail. He said CScale is using proven technologies in a new integration approach while preserving trusted fiber technology. CScale has raised $188 million to date and plans to ship its chips by 2028.