Fabless networking semiconductor vendor Xsight Labs raised more than $300 million in a funding round to accelerate its silicon roadmap.

The Israeli-headquartered firm, which features alums from Marvell, Mellanox, and EZchip, saw its value jump to $2.8 billion, with Fidelity Management & Research Company leading its funding round.

Intel’s venture capital arm joined Atreides Management, Maverick Capital, and Valor Equity Partners in also backing Xsight, as the vendor looks to ramp efforts on its multigenerational switch and data processing units (DPUs). It also plans to grow customer support teams in the U.S., Europe, Asia, and its headquarters to fulfill high-volume customer orders.

“This valuation is a testament to the team’s relentless execution and reflects the market need for a high-performance alternative to closed, legacy architectures,” Xsight Labs CEO Yossi Meyouhas noted. “We are grateful to our investors, new and longstanding, for the confidence they continue to place in this team.”

Xsight Labs was founded in 2017 and has offices in Boston; Raleigh, North Carolina; and San Jose, California, in addition to its Tel-Aviv headquarters and other sites in Israel and Armenia.

It’s one of several startups looking to shake up the networking silicon space.

Specifically, Xsight’s X-series Ethernet switch silicon opts against traditional fixed pipelines found in conventional lines in favor of executing instructions in parallel across programmable micro-engines, which can reduce latency as packet loops through the switch chip are severely reduced for high-performance workloads like AI.

The startup’s switch line features Ultra Ethernet (UE)-compliant congestion measurement features, while Xsight claims it provides some 40% lower power consumption than rival 12.8 Tb/s (12.8T) switches.

Its E-series DPUs target incumbents like AMD’s Pensando line with similar pipeline easing, with all 64 of its hardware’s Arm Neoverse N2 cores used directly in the data path instead of employing Arm cores for exception handling. Xsight notes its design results in a four-times central processing unit (CPU) performance gain, which could be a a potential boon for firms running agentic workloads.

Xsight’s E1 DPU is capable of supporting 800 Gb/s (800G) of throughput and is designed on a five-nanometer process. Per the vendor’s website, it typically uses around 70 watts of power, making it ideal for power-conscious customers.

Upon announcing its funding round, Xsight said both its E1 DPU and X2 switch have already been selected by “multiple global network operators” while its silicon is also being evaluated by unnamed tier-one hyperscalers.

The raise follows the launch of Xsight’s Accelerate program, which seeks to entice cloud, telecom, and high-capacity computing infrastructure operators with means to improve on legacy architectures to better handle modern data-heavy tasks.

“We are committed to providing the programmable, power-efficient building blocks required for the next generation of cloud, edge, and infrastructure networks,” Eric Vallone, Xsight’s VP of business development, noted earlier this year. “With Xsight Accelerate, we are ensuring that the future of the data center is built on a foundation of efficiency, agility, and performance.”