Nexthop AI Raises $110 Million to Revolutionize Networking Infrastructure
Nexthop AI, a startup dedicated to creating advanced networking infrastructure for major cloud providers, has raised $110 million in funding to fast-track the implementation of its tailored solutions for hyperscale data centers. The funding round was spearheaded by Lightspeed Venture Partners, with backing from Kleiner Perkins, WestBridge Capital, Battery Ventures, and Emergent Ventures.
Meeting the Demands of the AI Infrastructure Boom
As AI workloads grow exponentially, hyperscalers are investing billions annually to scale their GPU and networking deployments—often requiring over two gigawatts of capacity per year. Nexthop AI aims to meet this unprecedented demand by offering tailored hardware and software platforms optimized for large-scale data center operations.
Guru Chahal, Partner at Lightspeed Venture Partners, said, “The world’s largest cloud providers need a new generation of networking capabilities to keep pace with the demands of AI workloads.
He added, “Nexthop AI is filling a critical gap in this $35 billion market with its deep domain expertise, pioneering technology and customized solutions, positioning the company as the go-to partner for leading cloud providers, seeking to seize the AI revolution.”
Customized Networking Solutions for Hyperscalers
Nexthop AI differentiates itself by working closely with cloud giants to co-design custom networking systems that integrate directly into their cloud stack. This includes customer-specific networking hardware, hardened network operating systems, and pre-tested optical and electrical interconnects sourced from a client’s existing supply chain.
The company’s approach allows hyperscalers to build AI infrastructure that is both power and cost-efficient while also ensuring maximum compatibility and performance.
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Supporting the Next Wave of Technological Innovation
The company’s products are also built to work seamlessly with open-source network operating systems, including SONiC, offering the flexibility and customization required by today’s top cloud providers. Leveraging its expertise in hardware, software, photonics, and network architecture, Nexthop AI is positioned to be a key partner for cloud companies driving the AI revolution.
