Silicon Valley startup backed by Nvidia and Intel targets 2028 rollout for integrated optical server connectivity.
Silicon Valley startup CScale, formerly known as CSpeed, has raised $145 million in a funding round backed by semiconductor giants Nvidia and Intel. The company is developing technology to connect AI chips using fiber-optic cables rather than traditional copper interconnects inside data center servers. Led by former Cisco executive Martin Lund, CScale has raised $188 million to date, with its latest round led by Atreides Management, Valor Equity Partners, and Premji Invest, alongside existing investors Sutter Hill Ventures and Maverick Silicon.
The investment reflects a broader Silicon Valley push to overcome the physical limitations of copper wiring in AI infrastructure. While fast and reliable, copper cables have limited reach, forcing designers such as Nvidia and AMD to pack processors tightly together. This density generates massive heat, necessitating complex liquid cooling systems. Moving to optical interconnects—which transfer data using laser light rather than electrical signals—enables greater spatial flexibility and efficiency, though current laser technologies remain prone to operational failure.
CScale plans to ship its first chips by 2028, aiming to solve laser reliability issues by integrating lasers directly onto chips without disrupting data flows during component failures. CEO Martin Lund noted that the company is avoiding exotic materials, relying instead on proven, trusted fiber technologies integrated in a novel architecture.
