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

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.

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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.