Xsight Labs raises $300M at $2.8B valuation on AI networking demand

Israeli semiconductor company Xsight Labs has raised more than $300 million in a late-stage round at a $2.8 billion valuation. Fidelity Management & Research Company led, with participation from Atreides Management , Artisan Partners , Battery Ventures , Intel Capital , T. Rowe Price , and Valor Equity Partners .

The raise follows rapid commercial growth. Xsight's networking chips have been selected by global network operators, including SpaceX's Starlink , while Tier-1 hyperscalers are evaluating its technology.

Xsight builds high-performance connectivity chips that move data efficiently between servers, memory, and networks inside data centres. Its E1 DPU processes 800 gigabits per second of traffic, while its X2 Ethernet switch delivers 12.8 terabits per second of programmable capacity.

Xsight was founded by Guy Koren, Erez Sheizaf, and Gal Malach, all former employees of EZchip, the Israeli network processor firm acquired by Mellanox in 2016 for $811 million. Serial chip entrepreneur Avigdor Willenz is founding investor and chairman.

At $300 million and a $2.8 billion valuation, Xsight's raise underlines how the AI buildout has turned data-centre networking into a strategic battleground. As hyperscalers race to connect ever-larger clusters, demand for high-throughput, programmable connectivity silicon is drawing crossover investors that once focused on public markets.