Upscale AI targets $2 billion valuation in third funding round since September launch

Upscale AI in talks to raise at $2B valuation, says report | TechCrunch

AI infrastructure company Upscale AI is reportedly in talks to nab its third funding round since launching just seven months ago, according to Bloomberg. This latest round -- which aims to raise around $180 million to $200 million -- would value the company at about $2 billion. The company announced a $200 million Series A in January and a $100 million seed round in September, when it first launched. Investors in the company include Tiger Global Management, Xora Innovation, and Premji Invest. Notably, Upscale AI has yet to release a product. However, it's said to focus on building custom chips and on the infrastructure to enable them to communicate effectively. The company is betting on a full-stack solution and open standards as being the future of scalable AI infrastructure. The rumored valuation and raise are part of the startup playbook in this age of AI, where companies grow fast, valuations grow faster, but the hope for the next big thing outpaces it all.

Tiger Global-Backed Upscale AI in Talks for $2 Billion Valuation

Artificial intelligence startup Upscale AI is in talks to raise a new round of funding at a valuation of about $2 billion, according to people with knowledge of the efforts. The company, which is building infrastructure to connect AI computing clusters, has had discussions to bring in $180 million to $200 million in the deal, said the people, who asked not to be identified discussing private information. The funding round would mark Upscale AI's third funding event in seven months. The Santa Clara, California-based company emerged from stealth in September with more than $100 million in seed financing, before raising a $200 million Series A in January led by Tiger Global Management, Premji Invest and Xora Innovation. The talks are ongoing, and the details could change. Upscale AI declined to comment. The startup has said it's building specialized chips, networking equipment and software to help AI data centers run more efficiently. As research-driven labs and Big Tech companies clamor for AI computing, it's one of a crop of companies that has emerged with ambitions to improve AI infrastructure with new hardware and software. Upscale AI is competing with startups like Nexthop AI, which hit a $4.2 billion valuation in March with funding from Andreessen Horowitz and Lightspeed Venture Partners. Long-standing networking companies including Cisco Systems Inc., Broadcom Inc. and Arista Networks Inc. are also adapting their systems for the AI era. The startup spun out of Bitcoin mining company Auradine. An Upscale AI executive told Bloomberg in January that the startup planned to have a product available later this year.