Xsight Labs Raises $300 Million at $2.8 Billion Valuation to Scale AI-Network Silicon

Xsight Labs, a fabless semiconductor company focused on intelligent connectivity for hyperscale, edge, and AI data center networks, has closed a funding round exceeding $300 million, securing a post-money valuation of $2.8 billion. The round was led by Fidelity Management & Research Company, with participation from a mix of new and existing investors, signaling strong confidence in the company's technology roadmap and commercial momentum.

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

Network operators and vendors are facing unprecedented scale, latency, and power constraints at the edge and within data centers. Xsight Labs positions itself as the only semiconductor company shipping both high-end DPUs and Ethernet switches that are fully programmable and open. The E1 and X2 architectures are designed to address these constraints through several key capabilities. The E1 delivers line-rate 800G processing at connection scale, handling millions of connections per second 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 secures traffic at the same line rate. The architecture also avoids a "slow path," with all 64 Arm Neoverse N2 cores placed directly in the data path, ensuring routing, telemetry, and packet inspection run at line rate on every packet. The E1 runs native Linux, DPDK, and SONiC out of the box, allowing engineering teams to deploy existing software stacks without proprietary SDK lock-in. Power efficiency is another differentiator, with the E1 operating at a sub-75W footprint and delivering four times the performance per watt of previous-generation designs, making it suitable for constrained environments such as satellite communications, mobile data centers, and other space- and power-limited deployments.

On the switching side, the X2 is a fully software-defined Ethernet switch with a reprogrammable data plane enabled by the Xsight Instruction Set Architecture (XISA) and full SONiC integration. It operates under 200W with deterministic sub-700ns latency and a 40 percent lower power profile than legacy 12.8 Tbps switches, reducing power and cooling costs at the top of rack.

The new capital will be used to accelerate the company's multi-generational switch and DPU roadmap, including support for emerging Ultra Ethernet Consortium (UEC) standards. Funds will also support the expansion of engineering and customer support teams across the US, Israel, Europe, and Asia, as well as scaling manufacturing, supply chain, and customer delivery operations to fulfill high-volume Tier-1 orders.

Yossi Meyouhas, CEO of Xsight Labs, said the valuation reflects the market's demand for a high-performance alternative to closed, legacy architectures. He expressed gratitude to investors for their continued confidence in the team.

The round included participation from 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.