d-Matrix, a leading developer of generative AI inference compute solutions for data centers, announced the successful closing of a $275 million Series C funding round, valuing the company at $2 billion. This brings the total capital raised to $450 million since its founding in 2019. The new funding will advance the company’s roadmap, accelerate its international expansion, and support large-scale deployments of what d-Matrix describes as the world’s most efficient and highest-performing data center inference platform.
The Series C round was co-led by a global consortium including BullhoundCapital, Triatomic Capital, and Temasek, with participation from Qatar Investment Authority (QIA) and EDBI. Existing investors M12, Microsoft’s Venture Fund, Nautilus Venture Partners, Industry Ventures, and Mirae Asset also joined the round.
The oversubscribed round signals strong investor confidence in d-Matrix’s full-stack inference platform, which integrates compute-memory innovation, high-speed networking, and inference-optimized software. This combination reportedly delivers 10 times faster performance, 3 times lower cost, and up to 5 times greater energy efficiency than GPU-based systems. The company’s Corsair inference accelerators, JetStream NICs, and Aviator software suite enable data centers to produce up to 30,000 tokens per second at 2 milliseconds per token on a Llama 70B model. Its compute-dense design allows customers to run 100B-parameter models efficiently within a single rack.
As AI inference becomes an increasingly critical element of global infrastructure, d-Matrix’s technology addresses key sustainability challenges. The company’s approach enables one data center to perform the work of ten, significantly reducing energy consumption while enhancing cost efficiency and profitability for hyperscalers and enterprises deploying large AI models.
Founded by CEO Sid Sheth and CTO Sudeep Bhoja, d-Matrix has expanded its global footprint with offices in Santa Clara, Toronto, Sydney, Bangalore, and Belgrade. The company employs more than 250 people worldwide and continues to strengthen its partner ecosystem, including recent collaborations with Arista, Broadcom, and Supermicro through the d-Matrix SquadRack™ reference architecture.
The company’s roadmap includes next-generation advancements in 3D memory stacking and inference-optimized compute. With its focus on low-latency, high-throughput workloads, d-Matrix positions itself as a cornerstone of the next-generation AI infrastructure stack serving hyperscale, enterprise, and sovereign customers.
Morgan Stanley served as the exclusive placement agent for the transaction, while Wilson Sonsini Goodrich & Rosati acted as legal counsel to d-Matrix.
KEY QUOTES:
“From day one, d-Matrix has been uniquely focused on inference. When we started d-Matrix six years ago, training was seen as AI’s biggest challenge, but we knew that a new set of challenges would be coming soon. We predicted that when trained models needed to run continuously at scale, the infrastructure wouldn’t be ready. We’ve spent the last six years building the solution: a fundamentally new architecture that enables AI to operate everywhere, all the time. This funding validates that vision as the industry enters the Age of AI Inference.”
Sid Sheth, CEO and Co-Founder, d-Matrix
“As the AI industry’s focus shifts from training to large-scale inference, the winners will be those who anticipated this transition early and built for it. d-Matrix stands out not only for its technical depth but for its clear strategic vision. The team understood before anyone else that inference would define the economics of AI — and they’re executing brilliantly on that insight.”
Per Roman, Founder, BullhoundCapital
“AI inference is becoming the dominant cost in production AI systems, and d-Matrix has cracked the code on delivering both performance and sustainable economics at scale. Their digital in-memory compute architecture is purpose-built for low-latency, high-throughput inference workloads that matter most. With Sid, Sudeep, and their world-class team, plus an exceptional ecosystem of partners, d-Matrix is redefining what’s economically possible in AI infrastructure.”
Jeff Huber, General Partner, Triatomic Capital
“The explosion in AI inference demand shows us that efficiency and scalability can be key contributors to revenue capture and profitability for hyperscalers and AI factories. d-Matrix is the first AI chip startup to address contemporary unit economics in LLM inference for models of a range of sizes that are growing the fastest, with differentiated elements in the in-memory product architecture that will sustain the TCO benefits with leading latency and throughput.”
Michael Stewart, Managing Partner, M12, Microsoft’s Venture Fund
