Nvidia-Backed AI Chip Networking Startup Enfabrica Lands $125M Series B

, which designs networking chips to handle AI workloads, closed a $125 million Series B led by , and included an investment from new investor .

The round 鈥� which increased the company鈥檚 valuation more than 5x from its previous round 鈥� also saw participation from existing investor , and included new investors , , , and .

Mountain View, California-based Enfabrica’s chip allows for the consistent flow of data needed for modern AI workloads. The company plans to use the new cash infusion to expand its research and development capabilities and grow production.

鈥淭he fundamental challenge with today鈥檚 AI boom is the scaling of infrastructure,鈥� Enfabrica co-founder and CEO said in a . 鈥淭here鈥檚 no denying the transformative value that AI delivers to a multitude of economic sectors. But there is a critical need to bridge the exploding demand to the overall cost, efficiency and ease of scaling AI compute, across all customers seeking to take control of their distributed AI infrastructure and services.

AI infrastructure draws big investment

The last week-plus has seen investors open their pocketbook not necessarily for generative AI applications but the actual hardware, chips and other infrastructure needed for such modeling.

Last week, locked down a massive $200 million Series B that valued the AI research lab at $1 billion. The round also included an investment from Nvidia 鈥� which has participated in several AI funding deals for the likes of and .

That was followed the next day by generative AI chip designer closing a $110 million Series B led by Singapore-based .听