Nvidia-backed Upscale AI launches platform to connect chips from rival suppliers
NVDA•Upscale AI, valued at $2 billion in June, launched Token Fabric, a platform that connects AI chips from different suppliers in data centers. CEO Barun Kar expects the platform to generate tens of millions of dollars in revenue next year, potentially reaching the low hundreds of millions.
1. Platform connects AI chips
Token Fabric combines hardware and software to connect AI processors across a data center without requiring customers to integrate separate networking systems. It includes Upscale's networking chips, equipment using Nvidia's Spectrum-X technology, and software to identify bottlenecks and flag equipment that may need replacing.
2. Staged rollout planned
Upscale plans to release the first part of Token Fabric, which connects groups of AI chips across a data center, in the fourth quarter. The full platform is set to roll out in stages through 2027.
3. Funding and demand
Upscale is betting on demand from neoclouds and large cloud providers building data centers and seeking chips from multiple suppliers. In June, the startup raised a $190 million extension to its early-stage funding round, bringing its total funding to $500 million.
