Xsight raises $300M as AI data center networking revenue surges toward $150B

An Israeli semiconductor company most people have never heard of just pulled in over $300 million in fresh funding. Xsight Labs, a fabless chipmaker building networking silicon for AI data centers, closed the round at a valuation between $2.5 billion and $2.8 billion post-money. The bet behind the check is straightforward: investors believe AI data center networking will balloon into a $150 billion market by 2028. And Xsight’s chips, which prioritize power efficiency and programmability, are positioned to capture a meaningful slice of that growth. Who’s writing the checks and why Fidelity Investments and Atreides Management led the round, with serial entrepreneur Avigdor Willenz also contributing. Willenz has been instrumental in Xsight’s founding and development. Xsight was valued at roughly $500 million during its 2021 funding round. That means the company’s implied worth has grown roughly 5x in the intervening years, even after navigating management transitions and layoffs that could have derailed the operation entirely. The tech under the hood Xsight builds two main product lines: X-series switch chips and E-series DPUs, both designed specifically for AI data center connectivit...