Story
Chiplet Startup Eliyan Reaches $1B Valuation with $145M Round to Ease AI Data Bottlenecks
Summary
Eliyan, a startup specializing in chiplet technology to improve data transfer between AI processors, has raised $145 million in a Series C round, achieving a $1 billion valuation. The funding, led by Seligman Ventures and backed by Cisco and Lumentum, targets a critical bottleneck in AI data centers.
Eliyan, a semiconductor startup developing technology to speed up data transfer between artificial intelligence chips, announced Wednesday it has raised $145 million in a funding round that values the company at $1 billion. The investment aims to address a critical data bottleneck that limits the performance of AI systems in modern data centers.
Strategic Investment
The Series C funding was led by Seligman Ventures, with participation from new and existing investors including corporate backers Cisco Systems and Lumentum, according to the Santa Clara, California-based company. As part of the deal, Seligman Managing Partner Umesh Padval will join Eliyan’s board. Padval previously served on the board of networking firm Mellanox before its $6.8 billion acquisition by Nvidia in 2019.
Addressing the AI Bottleneck
Eliyan targets a fundamental challenge in AI computing: processors can often compute data much faster than they can receive it, leaving expensive hardware underutilized. This data transfer problem is a significant drag on efficiency for companies deploying large-scale AI infrastructure.
Ad"Today we are at the point that we are maybe 30-40% of the GPUs is being used, and is being mainly limited by how fast they can receive the data to process," Eliyan CEO and co-founder Ramin Farjadrad told Reuters. "We’re solving that problem."
Market Landscape and Outlook
Eliyan is positioning itself as an independent technology provider in a market where major players have made strategic moves to control connectivity. While Nvidia acquired Mellanox, other tech giants like Google and Amazon work with firms such as Broadcom and Marvell for their custom AI chips. Eliyan offers its solution both through technology licensing and by selling modular chip components known as chiplets.
According to Chief Strategy and Business Officer Patrick Soheili, Eliyan expects to begin initial chiplet shipments this year. The company forecasts revenue in the "low millions" of dollars in 2025, with projections to reach hundreds of millions by the end of 2027.
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