CScale raises $145 million to develop optical links for AI chips

October 3, 2026 at 08:41 PM1 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Silicon Valley startup CScale, formerly CSpeed, has raised $145 million in venture funding with backing from Nvidia and Intel. The company is developing optical links to replace copper wiring inside AI servers, aiming to begin shipments by 2028. The raise places CScale in a crowded race to retire copper connections in AI data centers.

Key Facts

CScale, previously known as CSpeed, secured $145 million in venture funding with Nvidia and Intel among its supporters.
The company aims to ship its optical interconnect chips by 2028, with total funding now at $188 million.
Atreides Management, Valor Equity Partners and Premji Invest led the latest round, joined by existing investors Sutter Hill Ventures and Maverick Silicon.
Chief Executive Martin Lund left a senior role overseeing chip and hardware systems at Cisco earlier this year.

The Optical Interconnect Push

CScale is developing technology to connect AI processors using optical links rather than copper wiring. Copper is quick and dependable but works only across short distances, forcing chip designers such as Nvidia and AMD to cluster processors closely together. That clustering produces intense heat and calls for sophisticated liquid cooling. Established companies and young ventures are investing billions in optical alternatives that carry data as pulses of laser light instead of electrical signals.

CScale's Approach

Lund declined to give technical specifics but said CScale will build lasers directly onto its chips. The design is intended to keep data flowing even when a laser breaks down. Lund described the approach as established components combined in a new way, while retaining the standard fiber technology the industry has relied on for many years.