Xsight Labs, the networking-silicon maker co-founded by Gal Malach and now led by CEO Yossi Meyouhas, closed more than $300 million at a $2.8 billion post-money valuation. Fidelity Management & Research Company led the round, according to Xsight Labs' July 30 announcement.
The financing gives an experienced Israeli semiconductor group the capital to move from design wins and customer testing into high-volume delivery. Xsight Labs says network operators have selected its E1 data processing unit and X2 Ethernet switch, while tier-1 hyperscalers are evaluating its silicon. Most of those customers remain unnamed, leaving the $2.8 billion valuation tied to Xsight Labs' ability to turn a technically credible product line into broad production deployments.
A networking team built for the long cycle
Malach, Xsight Labs' co-founder and chief technology officer, has spent much of his career working on programmable network devices, including senior architecture and engineering roles at Mellanox, EZchip and Freescale. His work gives Xsight Labs roots in the group of Israeli chip engineers that helped establish merchant networking silicon as a durable alternative to vertically integrated hardware.
Meyouhas joined Xsight Labs as chief operating officer in May 2021 and later became CEO. He previously ran research and development at Valens Semiconductor and held senior engineering roles at Marvell, including general manager of Marvell Israel. That operating background matters as Xsight Labs shifts its attention toward manufacturing, supply-chain execution and customer support across several regions.
Chairman and founding investor Avigdor Willenz adds another layer of semiconductor history. Willenz founded Galileo Technology, which Marvell acquired for $2.7 billion in 2001, and later backed chip companies including Annapurna Labs and Habana Labs before their acquisitions by Amazon and Intel, respectively. Xsight Labs' board identifies three co-founders, including Malach and Erez Shaizaf, whose earlier work also included Mellanox, EZchip and Freescale.
Xsight Labs was founded in 2017 and emerged from stealth in December 2020. Its March 2021 Series D was led by Valor Equity Partners and Atreides Management, with Fidelity joining at that stage. Xsight Labs' website now lists more than $430 million in total funding and more than 250 employees globally.
The bet on open network silicon
Xsight Labs is building both sides of a networking architecture that chip buyers often source from larger suppliers: programmable Ethernet switching and data processing units that handle networking, security and storage tasks away from host CPUs.
The E1 DPU is designed for 800 Gbps throughput and places 64 Arm Neoverse N2 cores directly in the data path. Xsight Labs says the chip runs standard Linux tools including DPDK and SPDK without requiring a proprietary software development kit. Xsight Labs says the E1 was the first 800G DPU to complete SONiC-DASH Hero 800G validation, sustaining more than 14 million connections per second in industry-standard benchmark testing.
Xsight Labs describes the E1 as operating in a sub-75-watt footprint and claims four times the performance per watt of earlier designs. Those comparisons come from Xsight Labs; the more concrete architectural pitch is that customers can use standard Linux software and put all 64 Arm cores to work on live traffic instead of reserving them for exception handling.
The X2 switch provides 12.8 Tbps of switching capacity, with claimed latency below 700 nanoseconds and typical power consumption below 200 watts. Customers can reprogram the data plane after deployment through XISA, Xsight Labs' documented instruction set for its switch silicon. That approach is meant to let network operators add protocols and traffic-management features through software instead of waiting for a new chip generation.
Meyouhas described the commercial pitch as a "high-performance alternative to closed, legacy architectures." The words reflect the central bet behind Xsight Labs: cloud operators will give a smaller supplier a place in critical infrastructure if its silicon reduces power use and gives engineers more control over packet processing.
What the new capital buys
Xsight Labs plans to spend the financing on several generations of switches and DPUs, including support for Ultra Ethernet Consortium standards. Xsight Labs will also add engineering and customer-support staff in the United States, Israel, Europe and Asia, and expand manufacturing, supply-chain and delivery capacity for what it describes as high-volume tier-1 orders.
The investor group combines large asset managers with semiconductor and infrastructure specialists. Alongside Fidelity, participants included Aliya Capital Partners, Atreides Management, Artisan Partners, Battery Ventures, Diagonal Capital, Intel Capital, Key1 Capital, Maverick Capital, Sienna, T. Rowe Price, Union Group and Valor Equity Partners.
The round size reflects the cost and timing of the next phase. A fabless model removes the expense of owning fabrication plants, though production still requires foundry capacity, packaging, testing, inventory and years of customer qualification. Xsight Labs must support several form factors and software environments while maintaining a roadmap that keeps pace with suppliers whose research budgets and distribution channels are considerably larger.
Named deployments and unnamed hyperscalers
Xsight Labs has started to produce public evidence that its chips work outside a laboratory. In December 2025, Xsight Labs said Starlink had selected the X2 switch for its next-generation V3 satellites. SpaceX engineering executive Michael Nicolls said the chip would form part of Starlink's terabit routing system.
Storage software maker Hammerspace has also selected the E1 for an architecture designed to connect flash storage to AI infrastructure without conventional storage servers. Oxide Computer Company has publicly endorsed Xsight Labs' open switching model as well.
The funding announcement goes further, saying multiple global network operators have selected the E1 and X2, with additional design wins among service providers and equipment makers. Xsight Labs describes tier-1 hyperscalers as evaluating the chips in their labs. Production orders from those customers would carry much more weight than evaluation activity, particularly because cloud operators qualify networking silicon over long cycles and can use competing suppliers to pressure pricing.
Xsight Labs also enters that process against deeply embedded platforms. Nvidia's BlueField-4 targets 800 Gbps DPU workloads and connects directly to Nvidia's AI systems and DOCA software. Broadcom's Tomahawk 6 pushes Ethernet switch capacity to 102.4 Tbps, while AMD's Pensando products combine infrastructure networking with AMD's broader data-center portfolio.
Xsight Labs is betting that openness, programmability and power efficiency can offset the distribution advantage held by those suppliers. The timing gives that strategy room: Dell'Oro Group forecasts spending on switches for AI back-end networks will exceed $100 billion by 2030, with Ethernet expected to lead both scale-up and scale-out deployments.
The $300 million round finances the difficult portion of Malach's original technical thesis. Xsight Labs has built the chips and secured several credible deployments. Its next test is repetition: shipping them in volume, supporting demanding customers and proving that an open networking architecture can become a sustained semiconductor business.