California AI firm to unveil advanced networking chip in 2025

Amid growing demand for scalable AI solutions, Enfabrica has raised $115M to develop groundbreaking technology aimed at improving how AI chips communicate within networks.
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California-based AI startup Enfabrica has raised $115M in a funding round to tackle one of the field’s most pressing challenges, enabling vast networks of AI chips to work seamlessly at scale. The company, founded by former engineers from Broadcom and Alphabet, plans to release its new networking chip early next year. This chip aims to enhance efficiency by addressing bottlenecks in how AI computing chips interact with networks, a problem that slows down data processing and wastes resources.

The startup claims its technology can scale AI networks to connect up to 500,000 chips, significantly surpassing the current limit of around 100,000. This breakthrough could speed up the training of larger AI models, reducing time and costs associated with unreliable or inaccurate outcomes. “The attributes of the network, like bandwidth and resiliency, are critical for scaling AI efficiently,” said Enfabrica CEO Rochan Sankar.

Investors in the funding round included Spark Capital, Maverick Silicon, and corporate backers like Arm Holdings and Samsung Ventures. Nvidia, an industry leader in AI chips, also participated, signaling strong support for Enfabrica’s mission to optimise AI infrastructure.