Point2 Technology – a leading provider of ultra-low-power, low-latency mixed-signal SoC solutions for multi-terabit interconnect – announced a $22.6 million Series B extension from Bosch Ventures and Molex (a global electronics leader and connectivity innovator), with participation from other investors. This Series B extension validates the demand for Point2’s technology in AI/ML data center applications and the potential to disrupt network interconnect in the broad automotive sector.
This funding round comes at a time when the use of AI in data centers is surging. According to a January 2024 report from Dell’Oro Group, the surge in AI infrastructure funding is expected to drive up data center capital expenditure (capex) by 15%, reaching $500 billion by 2027. This capex surge is driven largely by AI infrastructure investment. And a key element of this growth is the anticipated 50% surge in the data center switch market, where the integration of Point2 interconnect chips is set to revolutionize connectivity. This advancement is expected to escalate the demand for interconnect silicon by 50%.
Point2 is also partnering with strategic investor Molex to commercialize its E-Tube technology, a scalable interconnect platform that uses RF data transmission over plastic dielectric waveguide to enable multi-terabit active cables with 80% lower weight and 50% less bulk than copper cables. And compared to optical cables, E-Tube is expected to reduce power consumption and costs by 50%, with picosecond latencies that are three orders of magnitude better. E-Tube breaks the barriers of copper and optical cabling and it is expected to become the next-generation multi-terabit interconnect technology.
Generative AI and large language models (LLMs) such as ChatGPT are transforming industries and businesses, increasing the demand for computing resources and network interconnect capacity in next-generation hyperscale data centers. And advanced driver assistance systems (ADAS) in automotive are adopting a network-centric architecture to connect hundreds of sensors, driving the need for low-power, low-latency, lightweight, and flexible interconnect for future automotive applications. Point2 has gained recognition for its ultra-low-power, low-latency, cloud-optimized mixed-signal SoCs – which are purpose-built for active electrical cables (AECs). And AECs built with Point2’s Cloud Connect Engines can consume 40% less power and be up to 40% less bulky than other AEC solutions.
KEY QUOTES:
“We are thrilled to have support from Bosch, a Tier 1 supplier in the automotive industry, and from Molex as we advance our mission to revolutionize interconnect technology in AI/ML data centers and next-generation automotive applications. Our collaboration with Bosch underlines the importance and high potential of Point2’s low-power, low-latency, scalable interconnect technologies in the expansive automotive sector and further amplifies our impact in connecting AI workloads for the growing data center market.”
- Sean Park, Point2’s Founder and CEO
“Moving forward, interconnect provides critical infrastructure for high-performance and energy-efficient data centers and networked automotive applications. Point2’s unique interconnect SoC solutions deliver the high-bandwidth interconnect required in future data center and automotive sectors while addressing the critical need to reduce energy consumption and minimize carbon footprint. The company and its technologies have high potential to become a disruptor in network interconnect in both markets.”
- Ingo Ramesohl, Managing Director of Bosch Ventures
“Escalating network capacity demand in future AI/ML data center and automotive use cases requires a new approach to cable interconnect. Point2 has developed an E-Tube platform that can scale to the connectivity requirements of data centers and future automotive network architectures. Partnering with Point2 to commercialize E-Tube is a natural fit for Molex’s connectivity business and helps position our company to better respond to growing customer demands.”
- Jairo Guerrero, VP and GM of the Copper Solutions business at Molex
