Upscale AI Reportedly in Talks for $2 Billion Valuation

April 16, 2026
Upscale AI is reportedly negotiating a new funding round that could value the company at about $2 billion, marking its third raise in seven months. The startup is developing specialized chips and networking technology for AI data centers.

Upscale AI is reportedly in talks to raise between $180 million and $200 million in new funding, which would value the company at around $2 billion, according to Bloomberg.

The Santa Clara-based startup has already completed two funding rounds since launching seven months ago: a $100 million seed round in September and a $200 million Series A in January, backed by Tiger Global Management, Premji Invest, and Xora Innovation.

Upscale AI is developing specialized chips, networking equipment, and software designed to improve the efficiency of AI data centers. The company, which spun out of Bitcoin mining firm Auradine, aims to release its first product later this year.

The firm competes with other AI infrastructure startups such as Nexthop AI, as well as established networking companies like Cisco, Broadcom, and Arista Networks that are adapting their systems for AI workloads.

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