# Nvidia AI interconnect darling bags $136M funding from Arm, others > Source: > Published: 2026-08-10 15:00:25+00:00 AI data center interconnect specialist Point2 Technology bagged Series B financing to the tune of $136 million. Led by LB Investment, the funding round saw previous investors such as Nvidia, [Molex, and Bosch Ventures](https://www.sdxcentral.com/news/point2-technology-raises-226m-in-extended-funding-round/) joined by Arm and some unnamed participants. Point2 plans to use the new funding to grow its engineering, operations, and commercial teams while accelerating the roll out of its active radio frequency (RF) cable (ARC), near‑packaged e-Tube (NPE), and co‑packaged e‑Tube (CPE) technologies, which are designed to power the next generation of rack-scale AI compute infrastructure. Founded in 2016 and headquartered in San Jose, California, Point2 develops an RF signaling architecture that transmits data over plastic waveguides, as coupled with mixed‑signal interconnect system on chips (SoCs). The firm currently boasts partners such as [Keysight Technologies](https://www.sdxcentral.com/news/keysight-and-point2-testing-multiterabit-rf-interconnects-to-power-ai-scale-up/) and Taiwanese giant [Foxconn.](https://www.sdxcentral.com/news/foxconn-point2-partner-to-take-on-bottlenecks-for-ai-interconnects/) Point2's e‑Tube platform is presented as a connectivity solution to failing lasers and reportedly offers 10-times the reach and two-times lower cable volume than copper at a comparable cost, at three-times lower power and lower cost, with a 1,000-fold lower latency than optics. The offering may provide alternative connectivity amongst an ongoing laser squeeze fueled by AI-hungry hyperscaler demand. McKinsey claims production of 800 Gb/s (800G) transceivers is projected to run up to 60% below demand until 2027, while shortfalls of up to 40% are likely for 1.6 Tb/s (1.6T) devices through 2029. “As AI systems scale and bandwidth demands reach terabit-per-second speeds, interconnect has become the defining bottleneck," Point2 Technology CEO Sean Park noted on the Series B. "The latest investment ... validates that our e‑Tube platform is emerging as a critical interconnect solution for next-generation AI data factories.” “The next generation of AI infrastructure will rely on advances across the entire technology stack, from compute to memory and interconnect,” Paul Williamson, SVP for strategic ventures at Arm, added. “Point2 is addressing an increasingly important challenge as AI systems scale, and we are pleased to support their work in advancing the technologies that will underpin the future of AI infrastructure.”