Xsight Labs Raises $300M At $2.8B Valuation
As AI workloads push data centers to their limits, the Israeli chipmaker is racing to solve one of the industry’s biggest infrastructure challenges
Illustration: Brecht Corbeel via unsplash.com
Israeli semiconductor startup Xsight Labs has raised more than $300 million at a valuation of $2.8 billion, as demand for high-performance networking infrastructure grows alongside the expansion of artificial intelligence data centers.
The funding round was led by Fidelity Management & Research Company, with participation from investors including Intel Capital, Battery Ventures, T. Rowe Price, and Valor Equity Partners. The company said the capital will accelerate chip development, expand engineering and customer support teams, and scale manufacturing to support growing demand.
Founded in 2017 and headquartered in Tel Aviv, Xsight Labs develops programmable networking chips designed to address one of the biggest challenges in AI infrastructure: moving massive amounts of data quickly and efficiently between servers.
The company’s E1 Data Processing Unit (DPU) and X2 Ethernet switch have been selected by multiple global network operators and are being evaluated by leading hyperscalers, according to Xsight Labs. The products are also gaining traction among service providers and original equipment manufacturers.
Xsight Labs is targeting a market where AI workloads are pushing demand for faster networks with lower energy consumption. The E1 chip processes data at 800 gigabits per second while handling millions of simultaneous connections, with the company claiming it delivers this performance at under 75 watts of power.
The X2 switch is designed as a fully programmable Ethernet platform, allowing operators to update networking capabilities through software rather than waiting for new hardware. Xsight Labs says this flexibility can help cloud providers adapt infrastructure faster as AI applications evolve.
“AI workloads are fundamentally changing the requirements of modern networks,” said Xsight Labs CEO Yossi Meyouhas. “This investment reflects the market need for high-performance alternatives to closed, legacy architectures.”
The new funding comes as competition intensifies around the infrastructure needed to support AI systems. Xsight Labs said it will use part of the investment to advance its roadmap, including support for emerging networking standards such as those developed by the Ultra Ethernet Consortium.