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Relativity Networks raises $22 million for faster data center fiber

Created at 19 Aug · 10:20 AM1 source↑ Market-relevant
IN SHORT

Relativity Networks has secured $22 million in SAFE note funding to develop hollow-core fiber technology, which transmits data 30% faster than conventional fiber. The company also received a $40 million follow-on order from an unnamed hyperscaler.

Key Numbers

$22 millionfunding raised by Relativity Networks
$4 trillionexpected data center spending by 2030
$40 millionfollow-on order from hyperscaler
30%speed increase with hollow-core fiber
five microsecondssignal travel time per kilometer in conventional fiber
three and a half microsecondssignal travel time per kilometer in hollow-core fiber

Who's Involved

Relativity Networks
company developing faster fiber technology
Rhapsody Venture Partners
investor in Relativity Networks
Bell Ventures Inc.
investor in Relativity Networks
Faster Than Glass LLC
investor in Relativity Networks
Jason Eisenholz
CEO of Relativity Networks
Relativity Networks raises $22 million for faster data center fiber

↳ Why This Matters

This funding and technology could significantly impact the scalability and geographical distribution of data centers, particularly for AI workloads, by addressing critical latency issues and potentially altering the economics of data center construction.

Key facts

  • Relativity Networks raised $22 million in SAFE note funding.
  • The funding round included Rhapsody Venture Partners, Bell Ventures Inc., and Faster Than Glass LLC.
  • The company also secured a $40 million follow-on order from a major hyperscaler.
  • Relativity Networks utilizes hollow-core fiber technology for data transmission.
  • Hollow-core fiber allows data to travel 30% faster than conventional fiber optics.

Relativity Networks has announced $22 million in SAFE note funding, with participation from Rhapsody Venture Partners, Bell Ventures Inc., and Faster Than Glass LLC, to advance its hollow-core fiber technology. The company also secured a $40 million follow-on order from an unnamed hyperscaler.

Hollow-core fiber transmits data through a vacuum chamber, enabling speeds approximately 30% faster than traditional fiber-optic glass. CEO Jason Eisenholz estimates this reduces signal travel time per kilometer from five microseconds to three and a half microseconds. This speed improvement is particularly relevant for large-scale AI compute operations that span multiple data center buildings or campuses, where minimizing latency is critical for synchronized operation.

Eisenholz believes this technology can alter the geographical considerations for data center buildouts, allowing for larger physical distances between facilities before latency becomes a significant issue. He views this as a key development for the third era of AI, which focuses on optimizing geography, following eras focused on compute and internal networking.

Frequently asked questions

A SAFE (Simple Agreement for Future Equity) note is a type of investment agreement where an investor provides capital that converts into a specific number of shares once the company raises its first priced funding round.

Hollow-core fiber transmits light through a vacuum chamber in the center of the fiber, allowing data to travel closer to the speed of light compared to conventional fiber-optic glass.

Faster fiber reduces latency, which is crucial for large-scale AI computations that may be distributed across multiple buildings or campuses, ensuring these systems can operate as a single synchronized unit.

What Happens Next

01Relativity Networks will use the funding to further develop its hollow-core fiber technology.
02The company will likely pursue its first priced funding round to convert the SAFE notes.

How It Developed

Relativity Networks announced $22 million in SAFE note funding.
The funding was drawn by Rhapsody Venture Partners, Bell Ventures Inc., and Faster Than Glass LLC.
The company also secured a $40 million follow-on order from a leading hyperscaler.
Relativity Networks deals in hollow-core fiber, which allows data to be transmitted 30% faster than conventional fiber.

Sources

T1
Relativity Networks raises $22 million to bring a faster kind of fiber to data centersTechCrunch

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