Nexthop AI Secures $110M in Funding to Power the Future of AI Networking Nexthop AI's sophisticated networking products, designed to work seamlessly with open-source network operating systems like SONiC, are engineered to offer the agility and customization that modern hyperscalers require.

Nexthop AI, a company pioneering the next generation of AI networking infrastructure, has emerged from stealth with a $110 million in funding. Led by Lightspeed Venture Partners and backed by investors such as Kleiner Perkins, WestBridge Capital, Battery Ventures, and Emergent Ventures, as per a press release.

"The world's largest cloud providers need a new generation of networking capabilities to keep pace with the demands of AI workloads," said Guru Chahal, partner at Lightspeed Venture Partners. "Nexthop AI is filling a critical gap in this $35 billion market with its deep domain expertise, pioneering technology, and customized solutions, positioning the company as the go-to partner for leading cloud providers seeking to seize the AI revolution."

The boom in artificial intelligence has triggered an unprecedented demand for networking solutions capable of handling AI's massive computational loads. With hyperscalers investing billions annually to expand their GPU and networking infrastructure—often exceeding two gigawatts of capacity—there is an urgent need for custom-built, high-efficiency solutions. Nexthop AI is stepping in to meet this demand with its tailored approach to networking hardware and software for cloud giants.

Unlike traditional networking providers, Nexthop AI specializes in bespoke solutions that seamlessly integrate with a customer's cloud stack. This includes purpose-built networking hardware, an optimized network operating system, and pre-tested optical and electrical interconnects sourced from a customer's supply chain. By embedding itself within the engineering teams of hyperscalers, Nexthop AI functions as an extension of their innovation efforts, ensuring the highest levels of performance and efficiency.

"Hyperscalers need the ecosystem to innovate with them to accelerate their infrastructure deployments," said Anshul Sadana, CEO of Nexthop AI. "Nexthop AI is a force-multiplier, as it partners with and works as an extension of the cloud companies' engineering teams. This disruptive model enables cloud companies to build the most cost and power-efficient AI solutions."

Nexthop AI's sophisticated networking products, designed to work seamlessly with open-source network operating systems like SONiC, are engineered to offer the agility and customization that modern hyperscalers require. By leveraging expertise in hardware, software, photonics, and network architecture, Nexthop AI aims to deliver the most optimized AI infrastructure for the next wave of computing.