Nexthop AI, a next-gen AI infrastructure company focused on supporting hyperscale cloud providers, has launched from stealth with $110 million in funding. The round was led by Lightspeed Venture Partners, with additional participation from Kleiner Perkins, WestBridge Capital, Battery Ventures, and Emergent Ventures. This capital will fuel the development of Nexthop AI’s advanced networking solutions tailored for hyperscale AI clusters.
As AI workloads demand unprecedented computational power, hyperscalers are investing billions in GPU and networking upgrades, scaling their data center capacity by more than two gigawatts annually. Nexthop AI aims to optimize this infrastructure by delivering custom-built networking solutions that enhance efficiency and reduce operational costs.
“The world’s largest cloud providers need next-generation networking capabilities to meet the escalating demands of AI,” said Guru Chahal, partner at Lightspeed Venture Partners. “Nexthop AI is uniquely positioned in this $35 billion market, leveraging its deep technical expertise and innovative solutions to help hyperscalers capitalize on the AI boom.”
Nexthop AI specializes in designing networking hardware customized to each client’s specifications. The company also integrates hardened network operating systems (NOS) and pre-tested optical and electrical interconnects sourced from diverse supply chains, allowing seamless deployment within hyperscaler environments.
“Hyperscalers need partners who can innovate alongside them to accelerate infrastructure rollouts,” said Anshul Sadana, CEO of Nexthop AI. “By working as an extension of cloud providers’ engineering teams, Nexthop AI enables cost-effective and energy-efficient AI infrastructure at scale.”
Networking has been a critical enabler across every technological shift, from mainframes to PCs, and from client-server systems to the cloud. Nexthop AI aims to extend this legacy into the AI era by offering agile, open-source-compatible solutions. The company’s expertise in hardware, software, photonics, and network architecture positions it as a key partner for hyperscalers seeking cutting-edge, AI-optimized infrastructure.
Nexthop AI’s seamless integration with open-source Network Operating Systems, including SONiC, provides the customization and scalability needed to support hyperscalers’ evolving infrastructure requirements, driving the next wave of AI-powered innovation.
