Celestial AI, a Silicon Valley startup developing technology to speed up artificial intelligence (AI) systems, has recently raised an additional $250 million in venture capital, bringing the company's total funding to $515 million.

According to Celestial AI, it aims to tackle one of the biggest challenges in AI: the speed of data transfer between computing and memory chips. The startup is leveraging photonics, a technology that uses light instead of electrical signals, to create high-speed connections between chips. 

This technology, according to the company's official website, addresses a critical bottleneck in AI systems known as memory bandwidth, which determines how quickly data can move between components. Memory bandwidth is so crucial that it influences whether chips are subject to US export controls, such as those limiting China's access to advanced AI technology, explains a Reuters article.  

Currently, Nvidia dominates this space with its proprietary NVLink and NVSwitch technologies. However, Celestial AI is developing a "photonic fabric" that acts as a bridge between chips, offering faster data transfer while saving space and power, says the report. CEO Dave Lazovsky explained that the technology provides similar performance to Nvidia's solutions but with greater energy efficiency and lower latency.  

The funding round was led by Fidelity Management & Research and included investments from BlackRock, Maverick Capital, Tiger Global Management, and former Cadence Design Systems CEO Lip-Bu Tan. Existing investors, such as AMD Ventures, Koch Disruptive Technologies, and Singapore's Temasek, also participated.  

Celestial AI is part of a growing wave of startups, including Lightmatter and Ayar Labs, racing to develop alternatives to Nvidia's dominance, adds the Reuters report.