CScale exits stealth with $145m to stop laser failures stalling AI

CScale, a Palo Alto startup building optical interconnect for AI data centres, has come out of stealth with $145m in Series C funding. The round takes its total funding to $188m, the company said in a statement on Wednesday.

Atreides Management led the round, with Valor Equity Partners and Premji Invest as co-leads. Sutter Hill Ventures, which has backed CScale since it started, and Maverick Silicon also took part. Nvidia and Intel Capital joined as its first strategic investors.

“We’re designing the interconnect for continuity. Lasers will fail. Compute shouldn’t,” chief executive Martin Lund said.

What CScale builds

Optical interconnect is what lets thousands of accelerators work together like one much larger computer. CScale says those links become essential once a single AI system spans dozens of racks. It is building an integrated light engine for that job.

Its pitch is reliability. CScale says it is designing the interconnect to...

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