Sadana noted that improving power efficiency is crucial, as the energy demands of AI have skyrocketed since the release of ChatGPT in late 2022.

Nexthop AI officially launched on March 25, 2025, securing $110 million in funding led by Lightspeed Ventures to develop next-generation AI infrastructure tailored for major cloud companies.

The funding round also attracted participation from notable investors including Kleiner Perkins, WestBridge Capital, Battery Ventures, and Emergent Ventures, aimed at enhancing networking solutions for cloud and hyperscale AI clusters.

Based in Silicon Valley, Nexthop AI is strategically positioned in a competitive landscape that thrives on technology and innovation.

Nexthop AI leverages its expertise in hardware, software, photonics, and network architecture to develop optimized platforms for AI infrastructure.

It is projected that hyperscalers will add one to two gigawatts of capacity annually, with future capacities expected to exceed 10 gigawatts per company.

The demand for compute power to train and deploy AI models has surged, necessitating increased data center capacity, with modern hyperscalers requiring up to 200 megawatts.

Hyperscalers are investing billions in GPU and networking infrastructures, which require customized hardware and software to meet the growing demands of AI training and inference.

The company specializes in creating custom networking solutions that seamlessly integrate into existing cloud stacks, including tailored networking hardware and operating systems.

CEO Anshul Sadana emphasized that Nexthop AI functions as a partner and extension to cloud companies' engineering teams, facilitating cost-effective and power-efficient AI solutions.

With the new funding, Nexthop AI plans to expand its talent pool and accelerate product development to keep pace with rapid advancements in AI technology.

Guru Chahal from Lightspeed highlighted the need for a new generation of networking capabilities to support AI workloads, positioning Nexthop AI as a key player in a $35 billion market.