Nexthop AI Secures $110M to Power AI Networking for Cloud Giants

Nexthop AI, an AI-driven networking solutions company, has officially launched with a massive $110 million in funding. The funding round, led by Lightspeed Venture Partners, also saw participation from Kleiner Perkins, WestBridge Capital, Battery Ventures, and Emergent Ventures. With this capital infusion, Nexthop AI aims to redefine networking infrastructure for the world's largest cloud companies and AI hyperscalers.

Addressing the Growing Demands of AI

As AI training and inference workloads continue to surge, hyperscalers are investing billions into upgrading their GPU and networking infrastructure. These investments require highly efficient hardware and software solutions that can support increasing computational demands with optimal power efficiency.
•    AI hyperscalers are scaling their GPU and networking deployments with over two gigawatts of capacity annually.
•    Datacenter buildouts demand advanced hardware and software infrastructure tailored to high-performance AI workloads.

Strategic Vision and Market Opportunity

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

Custom Solutions for Hyperscalers

Nexthop AI is not just another networking company; it is building tailor-made solutions designed specifically for hyperscalers. The company offers:

•    Custom networking hardware tailored to each customer’s unique requirements.
•    A hardened network operating system, compatible with open-source platforms like SONiC.
•    Pre-tested optical and electrical interconnects sourced from a diverse supply chain.

Enabling the Next Wave of AI Innovation

CEO Anshul Sadana emphasized Nexthop AI’s role as a strategic partner for cloud giants:
“Hyperscalers need the ecosystem to innovate to accelerate their infrastructure deployments. 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.”

Throughout history, networking has played a crucial role in technological evolution—from mainframes to PCs, from client-server models to cloud computing. Now, as AI reshapes the landscape, Nexthop AI is set to become a critical enabler of the next wave of cloud innovation.
By leveraging expertise across hardware, software, photonics, and network architecture, Nexthop AI is poised to deliver cutting-edge, scalable, and highly optimized solutions for world-class AI infrastructure.