Highlights:

  • Xscape claims that its new interconnects, which are built on silicon photonics technology, may provide significantly more bandwidth and thereby boost GPUs’ performance.
  • The business has developed a novel method of connecting GPUs and other types of semiconductors with computer memory hardware, which it refers to as a “programmable laser.”

Xscape Photonics raised USD 44 million in the initial investment, leading its total amount summing up to USD 57 million till date. The next-generation data center connectivity startup is developing a new kind of laser-based interconnect.

IAG Capital Partners spearheaded Series A round, with support from Altair Engineering Inc., Nvidia Corp., Cisco Systems Inc., Fathom Fund, Kyra Ventures, LifeX, and OUP.

To connect the thousands of graphics processing units and other chips that make up the massive data centers that house the majority of the world’s technology, the startup is creating a new type of connection. Xscape claims that data centers require an improved method of connecting those processors as the bandwidth of the current interconnects is insufficient to support the most potent artificial intelligence workloads that businesses are currently operating.

The issue is serious: according to a 2022 study referenced by Xscape, developers typically utilize only 25% of a GPU’s capabilities due to the constrained networking bandwidth.

Xscape claims that its new interconnects, which are built on silicon photonics technology, may provide significantly more bandwidth and thereby boost those GPUs’ performance. In contrast to conventional interconnects, silicon photonics uses light manipulation as a means of data transmission.

Co-founder and Chief Executive Vivek Raghunathan reported that the company’s latest interconnects depend on “energy-efficient, cost-effective systems that do not exist in the industry yet.”

The startup has created a novel method of using light to transfer terabytes of data, which is very different from conventional interconnects that use metal cables to transfer data between chips as electric signals. Heavy weights are difficult for metal wires to handle because of their high energy requirements and heat production. Fiber optic cables are one often utilized option, however they are inefficient because latency issues arise from the requirement to transfer electrical data from the interconnect to optical signals and back again.

Conversely, silicon photonics-based interconnects need very less power and generate minimal heat.

The business has developed a novel method of connecting GPUs and other types of semiconductors with computer memory hardware, which it refers to as a “programmable laser.” By using different light spectrums, or wavelengths, the laser may send numerous data streams over the same link at the same time, greatly improving capacity.

This technology may someday serve as the foundation for data center interconnects that are substantially quicker. Finding a means to produce its interconnects on a big scale is one of the difficulties Xscape confronts, even though it appears to have been validated in the lab. According to the business, it can assemble its laser-based gadgets with the same machinery used to produce microelectronics for phones, laptops, and other hardware.

The startup claims that Cisco and Nvidia’s support is particularly noteworthy. Although they are not yet “strategic investors,” or clients, Raghunathan stated that their willingness to support the business indicates that they think its technology has potential.

Along with Co-founders Alexander Gaeta, Keren Bergman, and Michal Lipson, who invented the method used in Xscape’s light-based interconnects, Raghunathan is the company’s leader. In the meantime, Raghunathan oversaw the Intel Corp. silicon photonics research team, which is regarded as a pioneer in the developing field.

The funds from this round will be used by the company to quicken the development of its programmable, laser-based data center interconnect technology, known as the LabriX platform. It states that maximizing the bandwidth of GPU connections is its main objective with LabriX.

Competitors in the sector are vying for market share in the silicon photonics space, and Xscape is facing competition from them. In addition to Intel, competitors include Lightium AG, a company based in Switzerland that just raised USD seven million to develop and produce photonic integrated circuits using a novel technology known as Thin-Film Lithium Niobate.

Hewlett Packard Enterprise Co. and newer companies comprising Celestial AI Inc., Ayar Labs Inc., IP Photonics Corp., and Luminous Computing Inc. are among the other competitors. Additionally, IBM Corp. is investigating the potential of silicon photonics.