Point2 Tech Secures $23 Million Series B Boost from Bosch Ventures and Molex to Revolutionize Multi-Terabit Interconnect for AI and Automotive
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SAN JOSE, Calif., Feb. 15, 2024 ~ Point2 Technology Secures $22.6 Million in Series B Extension from Bosch Ventures and Molex to Revolutionize Interconnect Technology

Point2 Technology, a leading provider of ultra-low-power, low-latency mixed-signal SoC solutions for multi-terabit interconnect, has announced a significant boost in funding with a $22.6 million Series B extension from Bosch Ventures and Molex. This investment is a testament to the demand for Point2's technology in AI/ML data center applications and its potential to disrupt network interconnect in the automotive sector.

The surge in funding comes at a crucial time as the use of AI in data centers continues to skyrocket. According to a report from Dell'Oro Group, AI infrastructure investment is expected to drive up data center capital expenditure (capex) by 15 percent, reaching $500 billion by 2027. This growth is largely driven by the anticipated 50% surge in the data center switch market, where Point2's interconnect chips are set to revolutionize connectivity.

Point2's partnership with Molex, a global electronics leader and connectivity innovator, will focus on commercializing its E-Tube technology. This scalable interconnect platform uses RF data transmission over plastic dielectric waveguide to enable multi-terabit active cables that are 80% lighter and 50% less bulky than traditional copper cables. Compared to optical cables, E-Tube is expected to reduce power consumption and costs by 50%, with picosecond latencies that are three orders of magnitude better. This breakthrough technology breaks the barriers of copper and optical cabling and is poised to become the next-generation multi-terabit interconnect solution.

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"We are thrilled to have support from Bosch Ventures and Molex as we advance our mission to revolutionize interconnect technology in AI/ML data centers and next-generation automotive applications," said Sean Park, Founder and CEO of Point2. "Our collaboration with Bosch underlines the importance and high potential of Point2's low-power, low-latency, scalable interconnect technologies in the expansive automotive sector and further amplifies our impact in connecting AI workloads for the growing data center market."

Ingo Ramesohl, Managing Director of Bosch Ventures, also expressed excitement about the partnership, stating that "interconnect provides critical infrastructure for high-performance and energy-efficient data centers and networked automotive applications." He believes that Point2's unique interconnect SoC solutions have the potential to become a disruptor in network interconnect in both markets.

Jairo Guerrero, VP and GM of the Copper Solutions business at Molex, highlighted the need for a new approach to cable interconnect as network capacity demand continues to escalate. He stated that partnering with Point2 to commercialize E-Tube is a natural fit for Molex's connectivity business and will help position the company to better respond to growing customer demands.

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The demand for computing resources and network interconnect capacity is increasing with the rise of generative AI and large language models (LLMs) like ChatGPT. These technologies are transforming industries and businesses, further driving the need for advanced data center solutions. Additionally, automotive companies are adopting a network-centric architecture for advanced driver assistance systems (ADAS), which requires low-power, low-latency, lightweight, and flexible interconnect solutions.

Point2 has gained recognition for its ultra-low-power, low-latency mixed-signal SoCs that are purpose-built for active electrical cables (AECs). AECs built with Point2's Cloud Connect Engines can consume 40% less power and be up to 40% less bulky than other AEC solutions.

With this significant investment from Bosch Ventures and Molex, Point2 is well-positioned to continue its mission of revolutionizing interconnect technology in both AI/ML data centers and the automotive sector. The company's innovative solutions have the potential to disrupt the market and drive significant advancements in network interconnect technology.
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