Point2 Tech secures Series B funding boost

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Point2 Technology, a provider of ultra-low-power, low-latency mixed-signal SoC solutions for multi-terabit interconnect, has announced a $22.6 million Series B extension from its investors.

Bosch Ventures, a leader in deep tech investments, Molex and other investors were involved in this Series B extension which is seen as validating the demand for Point2’s technology in AI/ML data centre applications and its potential to disrupt network interconnect in the broad automotive sector.

The boost in funding comes at a time when the use of AI in data centre is skyrocketing. According to a recent report from Dell’Oro Group, the surge in AI infrastructure investment is expected to drive up data centre capital expenditure (capex) by 15 percent, reaching $500bn by 2027.

This spike in investment is driven largely by AI infrastructure investment. A key element of this growth is the anticipated 50% surge in the data centre switch market, where the integration of Point2 interconnect chips is set to revolutionise connectivity. This advancement is expected to escalate the demand for interconnect silicon by 50%, underscoring AI's pivotal role in redefining data centre technology's future.

Point2 is also partnering with Molex, a strategic investor, to commercialise its E-Tube technology, a scalable interconnect platform that uses RF data transmission over plastic dielectric waveguide to enable multi-terabit active cables with 80% lower weight and 50% less bulk than copper cables.

Compared to optical cables, E-Tube is expected to reduce power consumption and costs by 50%, with picosecond latencies that are three orders of magnitude better. Shattering the “copper or optics” paradigm for high-speed cable interconnect, E-Tube is seen as becoming the next-generation multi-terabit interconnect technology.

Commenting on the funding Sean Park, Point2's Founder and CEO said, "Our collaboration with Bosch underlines the importance and high potential of Point2’s low-power, low-latency, scalable interconnect technologies in the expansive automotive sector and further amplifies our impact in connecting AI workloads for the growing data centre market.”

“Moving forward, interconnect provides critical infrastructure for high-performance and energy-efficient data centres and networked automotive applications," said Ingo Ramesohl, Managing Director of Bosch Ventures. "Point2’s interconnect SoC solutions deliver the high-bandwidth interconnect required in future data centre and automotive sectors while addressing the critical need to reduce energy consumption and minimize carbon footprint. The company and its technologies have high potential to become a disruptor in network interconnect in both markets.”

Generative AI and large language models (LLMs) like ChatGPT are transforming industries and businesses, increasing the demand for computing resources and network interconnect capacity in next-generation hyperscale data centres. Additionally, advanced driver assistance systems (ADAS) in automotive are adopting a network-centric architecture to connect hundreds of sensors, driving the need for low-power, low-latency, lightweight, and flexible interconnect for future automotive applications.

Point2 has developed ultra-low-power, low-latency, cloud-optimised mixed-signal SoCs, which are purpose-built for active electrical cables (AECs). AECs built with Point2’s Cloud Connect Engines can consume 40% less power and be up to 40% less bulky than other AEC solutions.