AI networking chip startup nEye Systems raises $58 million, led by Alphabet's CapitalG fund


AI (Artificial Intelligence) letters are placed on computer motherboard in this illustration taken, June 23, 2023. REUTERS/Dado Ruvic/Illustration

SAN FRANCISCO (Reuters) - NEye Systems, a startup developing a new kind of networking chip for artificialintelligence data centers, on Thursday raised $58 million in venture financing in a round led by CapitalG, a growth-stage fund backed by Alphabet.

Emeryville, California-based nEye is developing a chip that taps optical technology to send information between AI chips in the form of light rather than electrical signals, a field that chip giants such as Nvidia and startups alike are chasing because it could lower energy use for AI data centers.

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