Astera Labs, a fabless semiconductor company headquartered in Silicon Valley, announced on September 27, 2021, that it raised $50 million funding as part of an oversubscribed Series-C funding round led by Fidelity Management and Research.
The round also saw participation from Atreides Management and Valor Equity Partners, with continued participation from existing investors Avigdor Willenz Group, GlobalLink1 Capital, Intel Capital, Sutter Hill Ventures, and VentureTech Alliance.
“With this investment and increased collaboration with our manufacturing partners, we will rapidly scale our worldwide operations to satisfy incredible customer demand and launch multiple new product lines to solve the industry’s most pressing connectivity challenges,” said CEO Jitendra Mohan.
Demand for complex computing solutions boon for Astera
Astera Labs Inc. is headquartered in the heart of California’s Silicon Valley, was founded in 2017 by Mohan, Casey Morrison, and Gajendra Akkasalamakki to address performance bottlenecks in datacenters with purpose-built “smart” connectivity solutions.
As more enterprises accelerate their adoption of AI and machine learning in 2021 and migrate to cloud-based architectures, during the pandemic, they are also taking on more applications and, as a result of that, more complex workloads and storage needs.
Forbes reports that 76% of enterprises are now prioritizing machine learning in their IT budgets.
As a result, there is a surge in the requirement for the proper infrastructure and Astera as a startup has built technology to make that process move faster and more efficiently.
The cutting-edge semiconductor products company is minting millions
Seventy-employee Astera is already generating “several millions” of dollars in revenue monthly, Mohan claims, and the gross margin profile is at or above competing semiconductor companies. Astera Labs raised only $35M over three years.
It is a leader in purpose-built connectivity solutions for data-centric systems throughout the data center. The company’s product portfolio includes system-aware semiconductor integrated circuits, boards, and services to enable robust CXL/PCIe connectivity.
“CXL has opened a new era of data center system architecture that is critical to realize the vision of AI in the cloud,” said Sanjay Gajendra, Chief Business Officer, Astera Labs.
“We are leading the industry with design wins at the five most powerful CPU/GPU/AI processor platforms in the world and the majority of Cloud customers. This positions us well to capitalize on CXL’s exciting new capabilities for cache-coherent and memory interconnects,” added Gajendra.