Relativity Networks raises $22 million to bring a faster kind of fiber to data centers
Relativity Networks has raised $22 million to develop hollow-core fiber technology, which transmits data faster than traditional glass fiber. This innovation aims to improve connectivity between sprawling data center campuses as AI compute demands grow.
Why it matters
Faster data transmission is critical for the scaling of AI infrastructure and the efficiency of large-scale data center operations.
Data center developers are expected to spend as much as $4 trillion by the end of the decade — and they’re already heavily constrained by both political and power-grid considerations in where they can build. But while most treat the speed of fiber as a given, one company is betting that faster fiber could change the geographical math behind the data center buildout.
On Tuesday, Relativity Networks announced $22 million in SAFE note funding drawn by Rhapsody Venture Partners, Bell Ventures Inc., and Faster Than Glass LLC, among others. A SAFE note, in which an investment transfers into a specific numbers of shares once the company raises its first priced round, is a standard method used for pre-seed and seed rounds. The company also secured a $40 million follow-on order from a leading hyperscaler that declined to be named for this piece.
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