Xsight Labs, an Israeli fabless semiconductor company that designs networking chips for data centers, has raised more than US$300 million at a US$2.8 billion valuation in a round led by Fidelity Management & Research Company.

Participants included existing investors and new backers such as Atreides Management, Artisan Partners, Battery Ventures, Intel Capital, T. Rowe Price, and Valor Equity Partners.

Founded in 2017 by Guy Koren, Erez Sheizaf, and Gal Malach, Xsight develops X-Series switch chips and E-Series data processors, including products it positions for data processing unit use cases.

Xsight said demand for AI and cloud connectivity helped drive the funding round.

One example is that its X2 chip is set to be used in SpaceX’s forthcoming Starlink v3 satellites.

The X2 is aimed at top-of-rack Ethernet switching and can run in under 200W, rather than in the highest-capacity AI-cluster spine segment where larger chipmakers are focused.

The company said the funds would go toward future switch and DPU products, hiring across Israel, the US, Europe, and Asia, and scaling manufacturing and supply-chain operations.

🔗 Source: Calcalist