The new sought-after items are the chips that connect GPUs. Xsight has secured $300 million to offer an open version.
The surge of AI has brought GPUs into the spotlight, but the often-overlooked chips that connect these GPUs are increasingly gaining value. Xsight Labs, an Israeli semiconductor company, announced on Thursday that it has secured over $300 million at a valuation of $2.8 billion, with Fidelity leading the investment round. This valuation is more than five times what the company was worth in 2021, representing a remarkable increase within a single year.
Xsight specializes in the infrastructure of AI data centers. Its two chips, the E1 processor and the X2 switch, facilitate the transfer of data among servers, memory, and networks. As AI models expand, managing the flow of data has become a significant challenge, making the interconnections between GPUs a valuable asset in its own right.
Challenging Nvidia’s other stronghold
Nvidia not only offers GPUs but also controls the networking layer, a position it acquired through its purchase of Mellanox. In contrast, Xsight offers an open and programmable alternative to this proprietary system.
These chips run standard Linux and SONiC, allowing operators to modify the X2 switch software after delivery, rather than having to wait for new hardware. “The market desired a high-performance alternative to closed, legacy architectures,” said CEO Yossi Meyouhas. Xsight is part of a growing number of startups aiming to break Nvidia’s dominance in the AI infrastructure.
Already operational
This is more than a research initiative. Several international network providers have chosen Xsight’s chips, including SpaceX’s Starlink. Recently, its processors successfully passed tests on SpaceX’s latest Starlink V3 satellites, according to Globes. Programmable chips are advantageous in space, where faults can be addressed through software updates instead of hardware replacements.
Efficiency is a key selling point. The E1 is the first 800-gigabit data processor to be released, operating at under 75 watts. The X2 has a data transfer rate of 12.8 terabits per second while consuming 40% less power than previous switches. As the energy costs for AI rise, every watt conserved becomes a significant asset.
A legacy of successful exits
The team behind Xsight boasts impressive credentials. It was founded in 2017 by veterans from EZchip, which was acquired by Mellanox in 2016, as reported by CTech. Avigdor Willenz, a serial entrepreneur in the chip industry who has sold previous companies to Marvell, Amazon, and Intel, serves as its chairman.
Investors followed his lead. The funding round included participants like Fidelity, Intel Capital, T. Rowe Price, Battery Ventures, and Valor Equity Partners, among others. The funds will be used to develop the next generations of chips and to enhance sales efforts with Tier-1 hyperscalers.
The influx of investment into AI infrastructure is now targeting more than just GPUs; it encompasses all aspects surrounding them, from power supplies to the cabling in data racks. Xsight is counting on the idea that the future leaders in networking will be the ones offering open solutions.
Other articles
A $2 sticker breaks the one element that keeps Meta's 'pervert glasses' intact.
Meta's solution to the issue of "pervert glasses" was to include a small light that activates when the camera is recording, serving as a warning to those in proximity. A sticker priced at a few dollars can deactivate this light. Engadget's Karissa Bell experimented with these workarounds.
Google's highly anticipated competitor to AirTag has just been revealed ahead of its launch under a recognizable name.
The Pixel Tag has been revealed before Google's major event, suggesting that it might soon be simpler to locate lost keys and wallets.
Microsoft aims to optimize Windows to perform effectively with only 8GB of RAM. This is something we urgently require.
Optimizing memory usage is the next major objective for Windows. Let's hope Microsoft fulfills this commitment.
The chips that connect GPUs are now the sought-after commodity. Xsight has secured $300 million to offer an open version.
The surge in artificial intelligence has brought GPUs into the spotlight. Meanwhile, the unassuming chips that connect thousands of these GPUs are quietly increasing in value. Xsight Labs, an Israeli semiconductor company, announced on Thursday that it has secured over $300 million at a valuation of $2.8 billion.
The EU approves the $55 billion acquisition of EA by a Saudi-led consortium in accordance with its subsidy regulations.
The European Commission has given its approval for the take-private of Electronic Arts led by PIF, in accordance with its Foreign Subsidies Regulation, eliminating one of the final obstacles to the largest leveraged buyout in history.
The European Union has authorized the $55 billion acquisition of
GM is developing its own in-vehicle AI assistant since Google’s Gemini does not have access to the information available in the car.
TL;DR: GM is set to introduce a proprietary AI assistant later this year, which will surpass Gemini by incorporating OnStar, vehicle telemetry, and predictive maintenance. The specific LLM provider remains unnamed. Gemini will continue to be available. General Motors will roll out its in-vehicle AI assistant.
The new sought-after items are the chips that connect GPUs. Xsight has secured $300 million to offer an open version.
The rise of AI has brought GPUs into the spotlight. Meanwhile, the unassuming chips that connect thousands of these GPUs are steadily gaining significant value. Xsight Labs, an Israeli semiconductor company, announced on Thursday that it has secured over $300 million at a valuation of $2.8 billion.