Xsight Labs

Semiconductors · Networking Chips · AI Infrastructure

Funding

Xsight Labs raises $300M at $2.8B valuation, up 5x since 2021

SpaceX just validated the startup's switches in new V3 satellites, a proof point that could unlock far larger hyperscaler contracts.

• Xsight Labs closed a funding round of more than $300 million at a $2.8 billion post-money valuation, led by Fidelity Management & Research Company.
• Founded in 2017 and based in Kiryat Gat, Israel, Xsight Labs builds fully programmable networking chips for AI and cloud data centers: the E1 data processing unit and the X2 Ethernet switch.
• The raise lands a week after Xsight's X2 switch was successfully tested aboard SpaceX's new V3 satellites, validating its fully software-programmable design in orbit.
• The E1 sustains more than 14 million connections per second at full 800 Gbps line rate with zero packet drops, while the X2 switch moves 12.8 Tbps at under 700 nanoseconds latency.
• The new $2.8 billion valuation is more than 5.6 times Xsight's $500 million mark from its 2021 round, reflecting a jump in demand as AI data centers scale networking needs.
• Chairman and founding investor Avigdor Willenz previously built Galileo Technology, sold to Marvell for $2.7 billion, and backed Annapurna Labs and Habana Labs ahead of their acquisitions by Amazon and Intel.
• The round shows investors betting that power-efficient, open-standard networking silicon can chip away at Nvidia-Mellanox's dominance as AI data centers hit power and cooling limits.