October 15, 2024 – Xscape Photonics, a pioneer in next-generation data center connectivity, today announced the closing of a $44 million Series A funding round, bringing its total funding to $57 million. The round was led by IAG Capital Partners and included participation from Cisco Systems Inc., Nvidia Corp., Altair Engineering Inc., Fathom Fund, Kyra Ventures, LifeX, and OUP.
Xscape Photonics is developing a novel interconnect technology based on silicon photonics, designed to address the bandwidth limitations of current data center interconnects. Existing solutions struggle to support the demands of powerful AI workloads, with studies indicating that only about 25% of GPU capacity is typically utilized due to networking constraints.
Xscape’s technology leverages the manipulation of light to transmit data, offering significantly higher bandwidth and improved performance compared to traditional electrical interconnects or fiber optic solutions. The company’s programmable laser technology enables the simultaneous transmission of multiple data streams across a single link, dramatically increasing capacity while minimizing heat generation and power consumption.
The investment will accelerate the development of Xscape’s LabriX platform, a programmable, laser-based data center interconnect technology aimed at maximizing GPU bandwidth. The company plans to utilize existing microelectronics manufacturing equipment to scale production of its laser-based devices.
The participation of Cisco and Nvidia, while not yet representing direct customer relationships, signifies strong industry validation of Xscape’s technology and its potential to reshape data center architecture. Xscape’s team includes experienced leaders in silicon photonics, with a proven track record of innovation in the field.
Xscape is operating in a competitive landscape, with several companies pursuing silicon photonics-based solutions. However, the company’s unique approach and strong funding position position it well to become a leader in this rapidly evolving market.
