Point2 Technology Secures $136M Series B Led by LB Investment, With Nvidia and Arm Backing

Point2 Technology, a San Jose-based developer of high-speed interconnect solutions for AI data centers, has closed a $136 million Series B funding round. The financing was led by LB Investment, with participation from existing backers including Nvidia, Molex, and Bosch Ventures, alongside new investor Arm and additional unnamed participants. The company plans to channel the capital into expanding its engineering, operations, and commercial teams, while accelerating the deployment of its active RF cable (ARC), near-packaged e-Tube (NPE), and co-packaged e-Tube (CPE) product lines, which are designed to support next-generation rack-scale AI compute infrastructure.

The funding comes at a time when interconnect technology has emerged as a critical bottleneck in scaling AI systems. As hyperscale data center operators push bandwidth demands toward terabit-per-second speeds, traditional copper and optical solutions are struggling to keep pace with power, cost, and latency requirements. Point2's RF signaling architecture, which transmits data over plastic waveguides coupled with mixed-signal interconnect system-on-chips, aims to offer a viable alternative. According to the company, its e-Tube platform delivers ten times the reach and two times lower cable volume than copper at comparable cost, while consuming three times less power and offering a 1,000-fold reduction in latency compared to optics.

The market context underscores the urgency of such innovation. McKinsey projects that production of 800G transceivers will fall up to 60 percent short of demand through 2027, while 1.6T devices could face supply gaps of up to 40 percent through 2029. This laser supply squeeze, driven by surging AI workloads from hyperscalers, has opened the door for alternative connectivity approaches like Point2's e-Tube platform.

“As AI systems scale and bandwidth demands reach terabit-per-second speeds, interconnect has become the defining bottleneck,” said Sean Park, CEO of Point2 Technology, commenting on the Series B. “The latest investment validates that our e-Tube platform is emerging as a critical interconnect solution for next-generation AI data factories.”

Arm's participation in the round signals strategic interest from the broader semiconductor ecosystem. “The next generation of AI infrastructure will rely on advances across the entire technology stack, from compute to memory and interconnect,” said Paul Williamson, senior vice president for strategic ventures at Arm. “Point2 is addressing an increasingly important challenge as AI systems scale, and we are pleased to support their work in advancing the technologies that will underpin the future of AI infrastructure.”

Founded in 2016, Point2 has built a partner network that includes Keysight Technologies and Taiwan's Foxconn. The company's new funding round reflects growing investor confidence in alternative interconnect technologies as the AI data center market expands. With the e-Tube platform positioned as a potential solution to the industry's laser shortage and power constraints, Point2's technology could play a pivotal role in shaping the next wave of AI infrastructure deployment.