Relativity Networks raises $22 million for faster fiber in data centers

In short: Relativity Networks says it raised $22 million to bring hollow-core fiber, a faster type of internet cable, to data centers.

What happened

Relativity Networks announced $22 million in new funding from investors including Rhapsody Venture Partners, Bell Ventures Inc., and Faster Than Glass LLC. The funding uses a SAFE note, which is a common startup deal where the investment turns into company shares later, when the company raises a bigger round.

The company also said it received a $40 million follow-on order from a large cloud company that it did not name. Large cloud companies run huge data centers and rent computing power to other businesses.

Relativity Networks sells hollow-core fiber. Most fiber-optic cables send light through solid glass to carry data. Hollow-core fiber sends the light through an empty center (think of a straw instead of a glass rod), which can reduce delay and make data move about 30% faster than standard fiber, according to the company.

Why it matters

Data centers are getting bigger, and they are harder to place. Power limits and local politics can restrict where companies build. If data can move faster between buildings and even between separate campuses, a company may be able to spread its computers out more while still keeping them working together, which is important for large AI systems that need many machines to stay in sync.

Source: TechCrunch AI