Xsight Labs, a fabless semiconductor company providing connectivity solutions for hyperscale, edge, and AI data center networks, has closed a $300 million-plus funding round. The round establishes a $2.8 billion post-money valuation. Fidelity Management & Research Company led the round with participation from new and existing investors.
The funding follows expanding commercial traction. The company’s E1 Data Processing Unit and X2 switch have been selected by multiple global network operators. Xsight Labs’ silicon is also under evaluation at Tier-1 hyperscalers, alongside a growing roster of design wins across service providers and OEMs.
The E1 processes millions of connections per second at full 800 Gbps line rate with zero packet drops. It is the first 800G DPU to ship. It is also the first to complete SONiC-DASH Hero 800G validation, sustaining more than 14 million connections per second in benchmark testing. The E1 operates at a sub-75W footprint, delivering 4x the performance per watt of previous-generation designs.
The X2 switch operates at 12.8 Tbps and can be reprogrammed after deployment through Xsight’s instruction set architecture. It runs under 200W with sub-700ns latency and a 40% lower power profile than legacy 12.8 Tbps switches. The new capital will accelerate the company’s multi-generational switch and DPU roadmap, including support for emerging Ultra Ethernet Consortium standards. It will also grow engineering and customer support teams across the US, Israel, Europe, and Asia, and scale manufacturing and supply chain operations.
Additional investors in the round include Aliya Capital Partners, Atreides Management, Artisan Partners, Battery Ventures, Diagonal Capital, Intel Capital, Key1 Capital, Maverick Capital, Sienna, T. Rowe Price, Union Group, and Valor Equity Partners. Xsight Labs was founded in 2017 and is headquartered in Tel Aviv, Israel, with additional offices in Kiryat Gat, Haifa, Boston, Raleigh, San Jose, and Yerevan, Armenia.
KEY QUOTE:
“This valuation is a testament to the team’s relentless execution and reflects the market need for a high-performance alternative to closed, legacy architectures. We are grateful to our investors, new and longstanding, for the confidence they continue to place in this team.”
Yossi Meyouhas, CEO, Xsight Labs
