The semiconductor company’s latest financing was led by Fidelity and Atreides, lifting its valuation sharply from 2021 as it pushes power-efficient networking chips for AI data centers and other demanding connectivity markets.
Xsight Labs said it has closed a $300+ million funding round that values the company at between $2.5 billion and $2.8 billion on a post-money basis, with Fidelity Investments and Atreides Management leading the raise and Avigdor Willenz also participating. The fabless semiconductor company is pitching its networking silicon as a power-efficient, programmable option for AI data centers, with two main product lines: X-series switch chips and E-series DPUs, or data processing units that handle networking and infrastructure workloads. The company said its X2 switch offers a programmable 12.8 Tbps Ethernet architecture and that its chips consume under 200 watts for a 12.8 terabit-per-second switch, while its E1 DPU delivers line-rate 800 Gbps processing and has completed SONiC-DASH Hero 800G validation. Xsight Labs also said multiple global network operators have selected its E1 DPU and X2 switch for next-generation infrastructure, Tier-1 hyperscalers are evaluating its silicon, and it has secured a contract to supply network chips for Starlink’s next-generation V3 satellites. The company was valued at roughly $500 million in its 2021 funding round, implying a roughly fivefold increase despite management changes and layoffs, and said it will use the new capital to expand its switch and DPU roadmap, support emerging Ultra Ethernet Consortium standards, grow engineering and customer support teams, and scale manufacturing and delivery operations.