SARATOGA, Calif.--(BUSINESS WIRE)--Mar 10, 2026--
Eridu, the pioneer advancing the frontier in AI networking, today announced that it has raised more than $200M in funding to disrupt the $200B AI networking market.
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Eridu’s funding includes a new oversubscribed Series A round led by Socratic Partners, John Doerr, Hudson River Trading, Capricorn Investment Group and Matter Venture Partners, with participation by Bosch Ventures, Eclipse Capital, Fusion Fund, MediaTek, Osage University Partners, SBVA, TDK Ventures, VentureTech Alliance, and Zelda Ventures among others.
“The disruptive demands of AI create an urgent need for completely re-thinking high-speed interconnect and packet switching,” said Gregory Waters, managing partner at Socratic Partners. “Eridu’s novel architecture dramatically improves throughput and is a platform that nearly all next generation AI will depend on. The team's deep expertise, systems engineering skills, and execution track record lend credibility to delivering the first new switching and interconnect platform built specifically for generative AI."
“Billions of dollars of investment in AI data centers are being wasted because of the network wall,” said Drew Perkins, CEO and founder of Eridu. “The plodding pace of improvement promised by the existing industry vendors is simply inadequate to solve the problem. Even new companies and solutions promising higher performance are in fact still subscale. Eridu has taken on and solved the key challenges across silicon, packaging, systems and optics needed to break through that wall.”
The Network Bottleneck Throttling AI
Although AI compute is advancing in performance and scale at breakneck speed, networking is not keeping up. Demands for data movement are growing exponentially as hyperscalers, frontier labs and neoclouds pursue an all-out race to build ever-larger AI data centers. At the same time, new architectural and algorithmic innovations in AI are only making the network bottleneck worse.
Current solutions and the roadmaps promised by incumbent and new providers continue down the path of incremental enhancements to the same architecture. That path only increases latency, power demands, cooling requirements, inefficiency and costs. Networking technology has fallen so far behind that a completely new design is required.
Reengineering Networking for AI
Eridu has developed a clean-sheet design for the demands of AI. Eridu’s network switch delivers the order-of-magnitude advance in performance, radix and efficiency needed to meet current and future AI demands.
With a clean break from the limits and trade-offs of current architectures, Eridu delivers previously impossible capabilities including:
This funding will be used to complete development of Eridu’s solution. For more information, visit eridu.ai.
Supporting Quotes
“AI requires a new generation of infrastructure that Eridu is pioneering,” said John Doerr, venture capitalist and chairman of Kleiner Perkins. “Eridu's team of industry veterans is proven – in prior companies (Lightera, Infinera), they have delivered billions of dollars in networking innovation.”
“We are excited to work with Eridu as it executes its vision to deliver advancements in AI networking, using TSMC’s advanced process and advanced system integration technologies,” said Dr. Lucas Tsai, vice president of business management at TSMC North America. “This partnership reflects TSMC’s commitment to supporting startup innovators like Eridu by combining our semiconductor manufacturing excellence with their expertise in system architecture innovation, driving breakthroughs in high-performance networking for AI datacenter infrastructure.”
“Today’s cloud networking gear is clearly insufficient for the bandwidth demands of accelerated compute,” said Dylan Patel, founder and CEO of SemiAnalysis. “As larger MoE models and trends like disaggregation of prefill and decode emerge, demands for network bandwidth and scale are only accelerating. Eridu’s networking technology is purpose-built for massive AI scale, supporting both scale-out and scale-up, enabling more bandwidth, larger AI clusters and lower costs. Eridu is the first company I’ve seen with the team and vision to deliver the next level of interconnect scale required to meet the insatiable demands of accelerated compute.”
“Our track record of success has been based on investing in teams with a bold vision to disrupt the status quo,” said Dipender Saluja, managing partner for Capricorn Investment Group’s Technology Impact Fund. “The Eridu team has impressed us not only with a bold vision for AI networking that stands out from the market; they have also shown us that they’ve been able to solve the hard technology challenges needed to deliver on that vision.”
“Breaking through the networking bottleneck facing AI data centers is the kind of critical HardTech challenge our firm was built to help founders solve,” said Wen Hsieh, founding managing partner at Matter Venture Partners. “Eridu AI is on a compelling path to overcome this constraint, potentially unlocking billions of dollars in AI infrastructure value while enabling the next phase of more efficient large-scale AI deployment.”
About Eridu
Eridu is the pioneer advancing the frontier in AI networking with a solution built from the ground up to deliver the bandwidth, performance and reliability at scale needed by AI data centers. Eridu’s solutions are designed to address the massive scale demanded by hyperscalers, but the solution is extensible to a broad set of markets including neoclouds, sovereign clouds and large enterprise AI data centers. Founded by a team of accomplished technology and business innovators, Eridu is challenging market incumbents and current AI networking solutions.
Eridu is backed by leading investors including Black Opal Ventures, Bosch Ventures, Capricorn Investment Group, Catapult Ventures, Chamaeleon, Eclipse Capital, Fathom Fund, Friends & Family Capital, Fusion Fund, Godfrey Capital, Hudson River Trading, Hyperlink, John Doerr, Leslie Enterprises, Matter Venture Partners, MediaTek, Modi Ventures, Ohio Innovation, Open Field Capital, Osage University Partners, Perkins Enterprises, Pierre Lamond, Rice Management, SBVA, Socratic Partners, Struck Capital, TDK Ventures, Triple Point Capital, VentureTech Alliance, Zelda Ventures and numerous others.
Eridu’s high-radix switch replaces 30 lower radix switches to increase performance and GPU utilization while massively lowering power and cost.
