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Axiado, a Silicon Valley startup developing a compact chip to reduce space and energy consumption in AI data centres, announced earlier this week that it had secured USD 100 million in fresh investment. The company aims to replace multiple legacy board-management components with a single, smaller chip capable of overseeing server coordination, enhancing security, and reducing cooling needs. With AI server density rising and operators making room for liquid-cooling systems, Axiado's approach comes at a critical moment. The chip's AI-driven capabilities also allow it to detect anomalies and adjust cooling loads, potentially cutting energy use by up to 50%.
Axiado, a Silicon Valley-based startup developing a next-generation management chip for artificial intelligence servers, said earlier this week that it had raised USD 100 million in new funding. The company is focused on creating a compact, power-efficient chip aimed at improving how servers inside AI data centres are coordinated and secured. Advertisement
Modern AI data centres rely on thousands of high-performance servers that must synchronise operations through internal networks. Each server typically contains several legacy board-management chips responsible for handling instructions, overseeing system processes, and safeguarding the machine against cyber intrusions. These components generally use older technologies and occupy significant space on the server motherboard.
Axiado is working to merge these disparate chips into a single, small-footprint alternative. The effort comes at a time when major semiconductor firms, including Nvidia and Advanced Micro Devices, are striving to maximise the number of graphics processing units that can fit inside server racks. Simultaneously, data centre operators are redesigning layouts to accommodate large-scale liquid-cooling systems, increasing the importance of conserving every inch of internal hardware space.
In discussions with Reuters, Andrew Homan, managing partner at Maverick Silicon - the firm that led the funding round - observed that space within AI server infrastructure had become a premium commodity. He added that freeing up physical room represented a significant advantage for companies building large computing systems.
Beyond consolidating hardware, Axiado's chip incorporates its own artificial intelligence engine. The technology is designed to learn and recognise normal server behaviour for different software workloads. With this baseline, the chip can identify deviations that may indicate cybersecurity threats. Additionally, the AI system can independently regulate cooling requirements by adjusting ventilation or liquid-cooling levels, potentially lowering cooling-related energy consumption by up to 50%.
Gopi Sirineni, Axiado's founder and chief executive, explained that the chip's AI model learns behavioural patterns and can assess the GPU capacity required for a specific workload. According to him, this capability helps ensure that systems do not run at full scale unnecessarily, thereby improving efficiency.
Industry observers noted that interest in server-optimisation technologies has been rising alongside the boom in generative AI, as operators face challenges related to power demand, thermal management, and rack density.
Source - Reuters
5th Jun, 2025
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