Xsight Labs Raises More than $300 Million at $2.8 Billion Valuation to Power Next-Generation AI and Cloud Networks

New capital follows the selection of the company's E1 800G DPU and X2 switch by multiple global network operators and accelerating traction across hyperscalers, service providers, and OEMs

Xsight Labs, a fabless semiconductor company providing intelligent connectivity solutions for next-generation hyperscale, edge, and AI data center networks, today announced the closing of a $300+ million funding round establishing a $2.8 billion post-money valuation. The round was led by Fidelity Management & Research Company with participation from new and existing investors.

"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," said Yossi Meyouhas, CEO of Xsight Labs. "We are grateful to our investors, new and longstanding, for the confidence they continue to place in this team."

The funding follows rapidly expanding commercial traction. The company's E1 Data Processing Unit (DPU) and X2 switch have been selected by multiple global network operators to power next-generation edge and network infrastructure. Xsight Labs silicon is also under evaluation in the labs of Tier-1 hyperscalers, alongside a growing roster of design wins across service providers and OEMs.

Why Operators and Vendors Are Choosing the E1 and X2

Network operators and vendors face unprecedented scale, latency, and power constraints at the edge and in the data center. Xsight Labs is the only semiconductor company shipping both high-end DPUs and Ethernet switches that are fully programmable and open. The E1 and X2 architectures address all three constraints:

• Line-rate 800G processing at connection scale. 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 and the first to complete SONiC-DASH Hero 800G validation, sustaining more than 14 million connections per second in industry-standard benchmark testing. Hardware-accelerated inline crypto (AES-GCM/XTS) secures that traffic at the same line rate.
• No "slow path." All 64 Arm Neoverse N2 cores sit directly in the data path, so routing, telemetry, and packet inspection run on every packet at line rate rather than being punted to an underpowered exception handler that slows everything down.
• Fully open, standard Linux environment. The E1 runs native Linux, DPDK, and SONiC out of the box, letting engineering teams deploy existing software stacks without proprietary SDK lock-in, accelerating development and time to market.
• Power efficiency. Operating at an ultra-efficient sub-75W footprint, the E1 delivers 4x the performance per watt of previous-generation designs, reducing the energy footprint of expanding edge and data center infrastructure. The same power-performance profile suits constrained environments including satellite communications and connectivity, mobile data centers, and other space- and power-limited deployments.
• Programmable switching at 12.8 Tbps. The X2 is a fully software-defined Ethernet switch: its data plane can be reprogrammed after deployment through XISA (Xsight Instruction Set Architecture) with full SONiC integration, letting operators and vendors add protocols and features in software instead of waiting for new silicon.
• Switching efficiency. The X2 operates under 200W with deterministic, sub-700ns latency and a 40 percent lower power profile than legacy 12.8 Tbps switches, cutting power and cooling costs at the top of rack.

Use of Capital

The new capital will accelerate the multi-generational switch and DPU roadmap, including support for emerging Ultra Ethernet Consortium (UEC) standards; grow engineering and customer support teams across the US, Israel, Europe, and Asia to support this rapid expansion; and scale manufacturing, supply chain, and customer delivery operations to fulfill high-volume Tier-1 customer orders.

The round was led by Fidelity Management & Research Company with participation from Aliya Capital Partners, Atreides Management, Artisan Partners, Battery Ventures, Diagonal Capital, Intel Capital (NASDAQ: INTC), Key1 Capital, Maverick Capital, Sienna, T. Rowe Price (NASDAQ: TROW), Union Group, and Valor Equity Partners.