Programmable networking chip startup Xsight Labs raises $300M

Israeli network chip startup Xsight Labs has secured a $300 million funding round, bringing its valuation to $2.8 billion. The funds will be used to expand its programmable Ethernet switches and 800-gigabit data processing units into cloud and AI networks. The funding round was led by Fidelity Management & Research Co. and included participation from several venture capital firms and capital partners.

Xsight Labs develops programmable Ethernet switches and data processing units, designed for AI connectivity and power efficiency. The startup's E1 data processing unit and X2 Ethernet switch are designed specifically for AI connectivity and consume under 200 watts for a 12.8 terabit-per-second switch. Xsight Labs is planning to expand its engineering teams and manufacturing capacity to meet the increasing demand for its products.

The company's most notable customer is SpaceX, which has integrated Xsight's X2 switches into the high-speed networking core of its Starlink V3 satellites. Xsight Labs is also developing new generations of its products to support the latest standards from the Ultra Ethernet Consortium. The startup's E1 chip features 64 Arm-based Neoverse N2 cores built on a 5-nanometer process, PCIe Gen5 connectivity, and encryption engines that run at line rate.

The X2 switch provides 12.8 terabytes of full-duplex bandwidth at under 200-watts, with a reprogrammable data plane that allows it to be reconfigured for different network applications.