Why trust Greenbot
Semiconductor startup Retym raised $75 million to make chips that speed up connections between artificial intelligence (AI) data centers. The company announced the funding on Monday, bringing their total to $180 million since they started in 2021.
Spark Capital led the investment with help from previous investors Kleiner Perkins, Mayfield, and Fidelity Investments. The California company revealed itself this week after working quietly for four years.
Retym’s chips use digital signal processing (DSP) to help data move faster between AI data centers. This solves a growing problem in AI – the need for better connections, as AI systems need thousands of processors working together.
“We are focusing on building coherent DSP chips for the next generation deployment of AI infrastructure and cloud,” said Sachin Gandhi, Retym’s co-founder and CEO, in a statement to Reuters.
The company’s first chip will send data over distances from 10 to 120 kilometers, working best at 30 to 40 kilometers. These chips use advanced modulation techniques to keep data from getting corrupted during transfer.
Retym enters a market currently led by Marvell Technology. It offers an alternative as demand for AI hardware grows rapidly.
“As AI workloads continue to scale exponentially, they’re creating unprecedented demands on critical infrastructure,” said James Kuklinski from Spark Capital. “Retym’s exceptional team is uniquely positioned to address these challenges.”
Taiwan Semiconductor Manufacturing Company (TSMC) is making Retym’s chips using its advanced 5-nanometer process. The chips are now being tested, and the company plans to release its first product later this year.
Navin Chaddha from Mayfield explained why they invested: “They took the approach of solving the harder problem with longer distances,” referring to Retym’s focus on both short and long-range data connections.
According to Dell’Oro Group, spending on data centers will exceed $1 trillion yearly within the next decade. This shows how important technologies like Retym’s chips are becoming.
The money will help Retym increase production and keep developing its technology as AI systems require more data and computing power.
