CScale, a startup based in Silicon Valley working on connecting AI chips with fibre-optic cables instead of traditional fiber, announced on Wednesday that it has secured $145 million in venture capital, with support from Nvidia and Intel.

The firm, previously known as CSpeed and that has shared limited information about its tech, is directed by CEO Martin Lund, who departed from his role managing chip and hardware systems at networking leader Cisco Systems earlier this year.

With the funding, CScale is participating in a race in Silicon Valley to swap out the copper cables that connect the chips within AI data center servers for optical cables.

Copper cables offer speed and dependability, yet their range is restricted. These reach limits have compelled chip manufacturers like Nvidia and Advanced Micro Devices to tightly cluster their processors within servers, which subsequently necessitates complex liquid cooling systems due to the heat produced by the chips.

Both public companies and startups are investing billions of dollars to substitute those connections with optical links that utilize bursts of laser light rather than electrons for data transmission. However, those lasers are susceptible to regular malfunctions, leading many companies pursuing technology to maintain the laser separate from the chip for easy replacement.

"Lund stated that we're not employing any unusual technologies." "We're utilizing established technologies, combining them in an innovative manner, while maintaining the same reliable fiber technology that has been present and distributed in the industry for numerous years."

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The financing round was led by Atreides Management, Valor Equity Partners, and Premji Invest. Current investors Sutter Hill Ventures and Maverick Silicon also participated in the funding revealed on Wednesday.