AI infrastructure startup Upscale AI has raised a $190 million Series A-1 extension at a $2 billion valuation, bringing its total funding to $500 million less than a year after its launch.
The Santa Clara-based company is focused on one of the most critical challenges in artificial intelligence today: networking infrastructure that can efficiently connect and scale massive AI compute clusters. As AI models grow larger and require tens of thousands of GPUs working together, networking has emerged as a key bottleneck for training and inference performance.
The latest round was led by Premji Invest and attracted participation from NVIDIA, Salesforce Ventures, Temasek, Seligman Ventures, Tiger Global, Mayfield, Prosperity7 Ventures, Maverick Silicon, and StepStone Group.
The investment reflects growing confidence that the next wave of AI winners will not be limited to model developers and chipmakers. Instead, investors are increasingly backing companies building the infrastructure layer that powers large-scale AI systems.
The Funding Round
Less than a year after its launch, Upscale AI has secured another major investment as demand for AI infrastructure continues to accelerate. The company announced a $190 million Series A-1 extension, pushing its valuation to $2 billion and total funding to $500 million.
| Detail | Information |
|---|---|
| Funding Round | Series A-1 Extension |
| Amount Raised | $190 Million |
| Valuation | $2 Billion |
| Total Funding Raised | $500 Million |
| Announcement Date | 22nd June 2026 |
| Headquarters | Santa Clara, California, United States |
| Founded | 2025 |
| Industry | AI Networking Infrastructure |
| Focus Area | AI Networking Fabric, AI Data Center Infrastructure, High-Performance Networking |
| Funding Stage | Series A-1 |
| Company Status | Private |
Current Round Investors
- Premji Invest
- NVIDIA
- Salesforce Ventures
- Temasek
- Seligman Ventures
- Tiger Global
- Mayfield
- Prosperity7 Ventures
- Maverick Silicon
- StepStone Group
Previous Investors
- Lightspeed Venture Partners
- WestBridge Capital
- Presidio Ventures
- Emergent Ventures
- Alpha Wave Global
- Intel Capital
- Dell Technologies Capital
- Samsung Catalyst Fund
Why Investors Are Backing Upscale AI
As AI models grow larger and require thousands of GPUs working together, networking has become one of the most important layers of AI infrastructure. Upscale AI is building technology designed to solve this challenge, making it an attractive bet for investors.
1. Infrastructure Sells to Everyone
Unlike AI model companies that compete directly with OpenAI, Anthropic, or Google, Upscale AI operates at the infrastructure layer. Regardless of which AI model wins the market, companies still need networking systems to connect compute, memory, and storage across large AI clusters.
2. Open Standards Strategy
Upscale AI is focused on open networking standards instead of proprietary ecosystems. This gives hyperscalers, cloud providers, enterprises, and sovereign AI initiatives greater flexibility when building AI infrastructure and helps reduce vendor lock-in.
3. NVIDIA Validation
NVIDIA’s participation in the funding round is a strong signal of confidence. As the global leader in AI chips, NVIDIA understands the infrastructure challenges of scaling AI systems. The company has been expanding its investments across networking, infrastructure software, and AI cloud platforms, making Upscale AI a natural fit within its broader AI ecosystem strategy.
Founders and Leadership
Upscale AI is not being built as a niche networking product or feature company. The founders are aiming to create a category-defining infrastructure business that could become a foundational layer of the AI ecosystem.
The company was founded by Rajiv Khemani and Barun Kar, two technology entrepreneurs with deep experience in semiconductors, enterprise infrastructure, and high-growth startups.
Rajiv Khemani, Co-Founder and Chairman, is a veteran technology executive and investor best known as the founder of Innovium, a cloud networking silicon company that was acquired by Marvell in a deal valued at approximately $1.1 billion in 2021. Prior to Innovium, he held leadership roles at Cavium and has spent decades building networking and semiconductor technologies used by major cloud providers and enterprises.
Barun Kar, Co-Founder and CEO, has extensive experience in networking, data center infrastructure, and enterprise technology. Before launching Upscale AI, he held senior leadership positions across networking and semiconductor companies, working on technologies that power large-scale cloud and data center environments.
Together, the founders bring decades of experience in networking hardware, silicon design, and infrastructure software. Their background in building and scaling networking companies is one of the key reasons investors believe Upscale AI can compete in a market traditionally dominated by industry giants such as Cisco, Arista, Broadcom, and NVIDIA.
