AI infrastructure firm Upscale AI is reportedly negotiating its third funding round, just seven months post-launch, as per Bloomberg. The current round seeks to raise $180 million to $200 million, valuing the company at approximately $2 billion. In January, the company disclosed a $200 million Series A and a $100 million seed round in September, coinciding with its inception. Key investors include Tiger Global Management, Xora Innovation, and Premji Invest.
Despite not having launched a product, Upscale AI is focusing on developing custom chips and the communication infrastructure to support them, emphasizing a full-stack solution with open standards as the future of scalable AI infrastructure.
The speculated valuation and fundraising reflect the typical start-up trajectory in the AI era, where rapid company and valuation growth outpace the anticipation of breakthrough innovations.