AI networking chip startup nEye Systems gains $58 million funding

16 Apr 2025

Optical switch technology intended to address communication bottlenecks in AI data centers.

nEye Systems, a US-based startup specializing in AI networking chips, has secured $58m in its Series B funding round to advance AI infrastructure with new optical switch technology.

The financing was led by Alphabet’s independent growth fund, CapitalG, with participation from M12, Microsoft’s venture fund, Micron Ventures, NVIDIA, and Socratic Partners.

The latest round brings nEye Systems’ total funding to $72.5m. nEye Systems co-founder Professor Ming Wu said, “We are thrilled to have the support of CapitalG and our other esteemed investors as we scale our optical switch technology.

“Our wafer-scale approach, backed by years of research at UC Berkeley, positions us to transform the AI fabric and enable the next generation of high-performance computing.”

Prof. Wu is Nortel Distinguished Professor of Electrical Engineering and Computer Sciences at University of California, Berkeley, and Co-Director of Berkeley Sensor and Actuator Center and Berkeley Emerging Technologies Research Center. Prof. Wu previously conducted research at AT&T Bell Laboratories in Murray Hill, NJ, and at the University of California, Los Angeles.

Addressing bottlenecks

The startup’s optical switch technology aims to address communication bottlenecks in AI data centers, high-performance computing, and AI and machine learning systems.

Existing infrastructures that depend mainly on electrical switches struggle with high power usage and limited bandwidth capacity. nEye’s wafer-scale optical circuit switch offers a more “cost-effective” solution with direct optical connections, enabling “unlimited” bandwidth.

CapitalG general partner and nEye board member James Luo said: “nEye’s groundbreaking technology has the potential to significantly improve the efficiency and scalability of AI infrastructure.

“Their innovative optical circuit switch addresses critical bottlenecks facing data centers and high-performance computing. We are thrilled to partner with Professor Ming Wu and the entire nEye team on their audacious journey to redefine the landscape of AI computing,” he said.

nEye Systems has developed prototype chips and plans to have production chip samples available next year. Earlier, nEye secured “undisclosed” Series A funds in a financing round led by TEDA Holdings with Innolight Technology and additional seed funds taking part.