US-based networking chip startup Celero Communications said on September 8 it raised US$275 million at a valuation of more than US$3 billion for AI data center networking.

The round was co-led by Atreides Management, Valor Equity Partners, and CapitalG, Alphabet’s venture capital arm. Atreides managing partner and CIO Gavin Baker is joining Celero’s board.

Celero makes coherent digital signal processors, optical chips designed to speed data transmission over fiber links between racks and nearby data centers.

The startup said the technology was needed as AI systems moved more data over longer distances.

Its competitors include Marvell, Broadcom, and Cisco Systems.

Celero said it had validated its chip using Taiwan Semiconductor Manufacturing Co.’s 2-nanometer process technology, which it described as the most advanced commercially available.

The company plans to finalize the design and begin production, a transition CEO Nariman Yousefi said he aims to start next year.

🔗 Source: Bloomberg