Nvidia-backed Upscale AI launches platform to connect chips from rival suppliers

Oct 8 (Reuters) - Upscale AI, ‌a startup ​valued ​at $2 billion in June, launched a networking platform on Thursday that allows customers to build data centers using ‌AI chips from different suppliers.

Called Token Fabric, the platform ⁠combines hardware and software to connect AI processors across a data center ‌without requiring customers to integrate ‌separate networking systems.

Here are some more details:

• Upscale is betting that it can tap growing demand from customers such as ​neoclouds and large cloud providers that are building out data centers and seeking to use chips from multiple suppliers.

• ⁠CEO Barun Kar said he expects revenue next year for Token Fabric in the tens ​of millions of dollars, potentially reaching the low hundreds of millions.

• Token Fabric combines Upscale's networking chips, ​equipment using Nvidia's Spectrum-X technology and ‌software to identify bottlenecks and flag equipment that may need replacing, according to the company.

• The ⁠aim of the system is to keep expensive AI chips working rather than waiting for data, helping customers get more from their investment.

• ⁠Upscale plans to release the first part of Token Fabric, which connects groups ​of AI chips across a data center, in the fourth quarter, with the full platform rolling out in stages through 2027.

• Backed by the ‌likes of Nvidia, Salesforce, Singapore state investor Temasek, Upscale AI in June raised a $190 million extension ‌to its early-stage funding round.

• The June financing took the startup's ⁠total funding so far ‌to $500 million and was ​led by Premji Invest, the investment unit of Indian billionaire Azim Premji.

(Reporting by Aditya Soni; Editing by ‌Nivedita Bhattacharjee)

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