Celestial AI Inc., a developer of chip connection technology, has raised $100 million in new capital.
The Santa Clara startup has developed what it calls a Phonic Fabric system, which uses beams of light instead of electrons to transmit data between chips and between chips and memory modules. The system is designed to overcome certain constraints that standard electric-based data connection technologies are placing on the computing performance needed for artificial intelligence models.
"Our technology solutions are lighting the way to the future of accelerated computing," Dave Lazovsky, Celestial AI's CEO, said in a news release.
Celestial, which plans to license its technology to chip and memory makers and data centers operators, plans to use its new capital to continue prepare for producing and marketing its connection technology by expanding its engineering, sales and marketing, TechCrunch reported.
Lazovsky, a former venture partner at Khosla Ventures, co-founded the company in 2020 with Preet Virk, a former executive at MACOM Technology Solutions Inc.
IAG Capital Partners, Koch Disruptive Technologies and Temasek's Xora Innovation fund led the round, a Series B, for the startup. Samsung Catalyst, Smart Global Holdings, Porsche Automobil Holding SE,
The Engine Fund, imec.xpand, M Ventures and Tyche Partners participated in the deal.
With the new investment, Celesital has now raised more than $160 million in venture funding. It's now valued at $340 million, according to PitchBook Data.
The startup is only the latest AI-related company based in the Bay Area to raise a megaround. Earlier this week, chatbot developer Inflection AI Inc. announced a $1.3 billion round, while Typeface Inc., a developer of AI-powered marketing tools, raised $100 million.
