TLDR: Upscale AI, a Santa Clara-based company, has officially launched with over $100 million in seed funding. The company aims to introduce an open-standard AI networking platform designed for high-performance connectivity in specialized computing, challenging existing closed, proprietary systems.
Santa Clara, CA – September 17, 2025 – Upscale AI, a new player in the artificial intelligence networking sector, has announced its official launch, backed by a substantial seed funding round exceeding $100 million. The investment was co-led by prominent venture capital firms Mayfield and Maverick Silicon, with additional participation from StepStone Group, Celesta Capital, Xora, Qualcomm Ventures, Cota Capital, MVP Ventures, and Stanford University. This significant capital injection positions Upscale AI to disrupt the rapidly expanding $20+ billion AI networking market.
The company’s core mission is to make AI more accessible by pioneering open-standard networking technology. Upscale AI plans to achieve this through a new suite of networking solutions that provide ultra-low latency and high-performance connectivity, specifically tailored for demanding AI workloads such as training, inference, generative AI, edge computing, and cloud deployments. This approach directly challenges the prevailing closed, proprietary systems that often lock users into specific vendors.
Founded by serial entrepreneurs Barun Kar (CEO) and Rajiv Khemani (Executive Chairman), Upscale AI benefits from the extensive experience of its leadership, who previously founded successful companies like Palo Alto Networks, Innovium, and Cavium (acquired by Marvell). The team comprises over 100 technologists with diverse backgrounds from leading infrastructure companies including Marvell, Broadcom, Intel, Cisco, AWS, Microsoft, Google, Palo Alto Networks, and Juniper Networks.
Upscale AI’s product portfolio is built on a foundation of open-source technologies and open standards, including SONiC, Ultra Accelerator Link (UAL), Ultra Ethernet (UE), and Switch Abstraction Interface (SAI). The company is also an active participant in key industry consortia such as the Ultra Ethernet Consortium (UEC), Ultra Accelerator Link (UAL), Open Compute Project (OCP), and the SONiC Foundation, demonstrating its commitment to advancing open innovation in AI networking.
Alan Weckel, co-founder and Technology Analyst at 650 Group, commented on the development, stating, ‘Open, interoperable systems will become the new standard for scalable AI infrastructure. Upscale AI is driving the exact type of innovation we expect to see more of as the market moves beyond monolithic structures. Many industry-leading tools remain trapped within closed-circuit vendor-locked systems, but Upscale AI is building a level playing field where innovation, performance, and healthy competition can thrive.’
Navin Chaddha, Managing Partner of Mayfield, expressed his enthusiasm for the venture: ‘We’re witnessing a fundamental transformation in networking as traditional approaches cannot keep pace with AI’s exponential demands. Upscale AI is reimagining the entire AI networking stack, starting with open-standard solutions that break free from proprietary systems. We’re excited to continue our partnership with Barun and Rajiv for the third time.’
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The funding will be utilized to expand operations, accelerate development efforts, and build a comprehensive suite of AI networking products. The company’s focus areas include AI Network Fabrics for ultra-low latency and high bandwidth, unified network operating systems based on open standards like SAI/SONiC for enhanced operationality and scalability, and disruptive AI Networking Rack Platforms that promote vendor choice and reduce total cost of ownership (TCO) at the data center level. Upscale AI was initially incubated by Auradine, an infrastructure player in the blockchain and AI compute space.
