Key facts
- Upscale AI launched its Token Fabric platform on Thursday.
- The platform connects AI chips from different suppliers within a data center.
- Token Fabric aims to keep AI chips working by reducing data waiting times.
- Upscale AI was valued at $2 billion in June.
- The company raised $190 million in June, bringing its total funding to $500 million.
- Nvidia, Salesforce, and Temasek are among Upscale AI's investors.
Upscale AI, a startup valued at $2 billion in June, launched a new networking platform called Token Fabric on Thursday. The platform is designed to allow customers to build data centers using AI chips from various suppliers, addressing a growing demand from cloud providers and neoclouds seeking to diversify their hardware.
Token Fabric integrates hardware and software to connect AI processors across a data center without requiring separate networking systems. This aims to ensure that expensive AI chips are kept operational by minimizing data waiting times, thereby helping customers maximize their return on investment. The platform incorporates Upscale's own networking chips, equipment utilizing Nvidia's Spectrum-X technology, and software for identifying bottlenecks and flagging equipment for replacement.
Upscale AI expects Token Fabric to generate revenue in the tens of millions of dollars next year, potentially reaching the low hundreds of millions. The company plans to release the first phase of Token Fabric, which connects groups of AI chips, in the fourth quarter, with the full platform rolling out in stages through 2027.
In June, Upscale AI raised $190 million in an extension to its early-stage funding round, bringing its total funding to $500 million. The round was led by Premji Invest, the investment arm of Indian billionaire Azim Premji, and included investors such as Nvidia, Salesforce, and Singapore's state investor Temasek.