Upscale AI gets $100M for a new kind of AI networking infrastructure built on open standards – News

Artificial intelligence is putting existing networks under immense strain, and they have emerged as one of the major constraints on the development of more powerful large language models and AI algorithms.

To solve this problem, what’s required is an entirely new network infrastructure that’s based on open standards, and a startup called Upscale AI Inc. says it has both the blueprints, and now the funding to build it, after raising over $100 million in seed funding today

The round was co-led by Mayfield and Maverick Silicon and saw participation from a host of other backers, including StepStone Group, Xora, Qualcomm Ventures, Celesta Capital, Cota Capital, MVP Ventures and Stanford University.

It’s rare that a startup is able to raise such a huge amount of seed capital, but Upscale AI has already come a long way, having been successfully incubated by the blockchain and AI-focused infrastructure firm Auradine Inc. During that time, it says it has already laid the foundation for a new kind of high-performance network built entirely on open standards, and says it will enable blazing-fast connectivity for specialized compute.

The startup says it’s targeting an AI networking infrastructure market that’s already valued at more than $20 billion annually, and is quietly confident it will be able to take a huge bite out of that segment. According to Upscale AI Chief Executive Barun Kar, AI networks require a full-stack redesign, and that means developing specialized auxiliary processing units or XPUs, ultra-low latency interconnects and a more power-efficient operating system that’s able to scale and support enormous clusters of thousands of graphics processing units.

Upscale AI is racing to build this, with one of its core components being a new kind of AI Network Fabric that it says is designed to enhance the performance of XPU clusters. XPUs are critical for AI, as they take care of the specialized infrastructure tasks in AI, so that GPUs can be used exclusively for computations.

The startup has also built an all-new unified network operating system based on open standards such as the Switch Abstraction Interface and Software for Open Networking in the Cloud, known as SAI/SONiC, which enables infrastructure to scale with in-service network upgrades that maximize uptime. Another key development is Upscale AI’s novel AI networking rack platform, which gives network operators the freedom to choose networking hardware from any vendor.

Although Upscale AI does not provide any numbers, it’s confident that its redesigned networks will deliver “breakthrough performance” for AI training, inference and edge AI deployments, and its long list of financial backers suggests that many believe its claims.

“We incubated Upscale AI with a bold vision to reimagine networking for the AI era anchored in openness, performance, and scale,” said Auradine CEO Rajiv Khemani, who also serves as Upscale AI’s executive chairman. “As AI transforms every industry, next-generation infrastructure must keep pace. Upscale AI’s world-class team is building the foundational layer that will enable AI to reach its full potential.”

A new frontier for open AI-native networks

The startup’s network brings together a host of different open standards, enabling complete freedom of choice for data center operators. In addition to SAI/SONiC, it’s built on standards such as Ultra Accelerator Link and Ultra Ethernet. It also participates in a number of governing bodies relating to these standards, including the Ultra Ethernet Consortium, the Open Compute Project and the SONiC Foundation.

Alan Weckel, an analyst with 650 Group, said most network experts agree that open and interoperable systems provide the only realistic way to scale AI infrastructure. “Upscale AI is driving exactly the type of innovation we expect to see more of as the market moves beyond monolithic structures,” he said. “Many industry-leading tools remain trapped within closed circuit and vendor-locked systems. Upscale AI is building a level playing field, where innovation, performance and healthy competition can thrive.”

Upscale AI’s founders Kar and Khemani understand the requirements of AI networking, having previously worked at companies including Palo Alto Networks Inc., Innovium Inc. and Cavium Inc. Moreover, its engineering team is staffed by veterans from leading networking players like Cisco Systems Inc., Juniper Networks Inc., Broadcom Inc., Google LLC and Microsoft Corp.

Kar said that his company’s team has been at the center of every major computing shift over the last 20 years, and now it’s determined to shape the next frontier with its open, AI-native infrastructure. “Our deep expertise enables us to architect cohesive AI infrastructure solutions, partnering with leading xPU vendors and AI innovators to meet today’s demands and power what’s next,” he promised.

Image: Upscale AI