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HomeFunding CA-based Point2 Technology Secures Additional $22.6Million in Series B Round Funding

[Funding alert] CA-based Point2 Technology Secures Additional $22.6Million in Series B Round Funding

CA-based Point2 Technology secures additional $22.6million in series B round funding from Bosch Venture, a leader in deep tech investments, and Molex, a global electronics leader and connectivity innovator, with participation from other investors.

CA-based Point2 Technology secures additional $22.6million in series B round funding from Bosch Venture, a leader in deep tech investments, and Molex, a global electronics leader and connectivity innovator, with participation from other investors.

This Series B extension validates the demand for Point2’s technology in AI/ML data center applications and the potential to disrupt network interconnect in the broad automotive sector.

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The boost in funding comes at a time when the use of AI in data centers is skyrocketing. According to a January 2024 report from Dell’Oro Group, the surge in AI infrastructure investment is expected to drive up data center capital expenditure (capex) by 15 percent, reaching $500 billion by 2027.

This capex spike is driven largely by AI infrastructure investment. A key element of this growth is the anticipated 50% surge in the data center switch market, where the integration of Point2 interconnect chips is set to revolutionize connectivity.

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This advancement is expected to escalate the demand for interconnect silicon by 50%, underscoring AI’s pivotal role in redefining data center technology’s future.

Point2 is also partnering with Molex, a strategic investor, to commercialize 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.

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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 breaks the barriers of copper and optical cabling and is poised to become the next-generation multi-terabit interconnect technology.

Sean Park, Point2’s Founder and CEO said, “We are thrilled to have support from Bosch, a Tier 1 supplier in the automotive industry, and from Molex as we advance our mission to revolutionize interconnect technology in AI/ML data centers and next-generation automotive applications, 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 center market.”

Ingo Ramesohl, Managing Director of Bosch Ventures said, “Moving forward, interconnect provides critical infrastructure for high-performance and energy-efficient data centers and networked automotive applications, Point2’s unique interconnect SoC solutions deliver the high-bandwidth interconnect required in future data center 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.”

Jairo Guerrero, VP and GM of the Copper Solutions business at Molex said, “Escalating network capacity demand in future AI/ML data center and automotive use cases requires a new approach to cable interconnect, Point2 has developed an E-Tube platform that can scale to the connectivity requirements of data centers and future automotive network architectures. Partnering with Point2 to commercialize E-Tube is a natural fit for Molex’s connectivity business and helps position our company to better respond to growing customer demands.”

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 centers.

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About Bosch Ventures

Robert Bosch Venture Capital GmbH (Bosch Ventures) is the corporate venture capital company of the Bosch Group, a leading global supplier of technology and services. Bosch Ventures invests worldwide in innovative start-up companies at all stages of their development.

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Its investment activities focus on technology companies working in areas of business of current and future relevance for Bosch, above all, automation and electrification, energy efficiency, enabling technologies, and healthcare systems.

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