Semiconductor co Xsight Labs raises $300m at $2.8b valuation

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Xsight Labs, an Israeli semiconductor company managed from Kiryat Gat that competes with Nvidia in connectivity solutions announced this afternoon that it had raised $300 million at a valuation of $2.8 billion. The round was led by Fidelity Management & Research Company with participation from Aliya Capital Partners, Atreides Management, Artisan Partners, Battery Ventures, Diagonal Capital, Intel Capital, Key1 Capital, Maverick Capital, Sienna, T. Rowe Price, Union Group, and Valor Equity Partners. Serial entrepreneur Avigdor Willenz was one of the initial investors in the company and serves as its chairperson.

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Atreides Management was one of the fist investors in SpaceX, and the connection Is not coincidental: Xsight Labs provides network processors to SpaceX, more precisely the X2 Switch, which competes with Nvidia-Mellanox’s BlueField data processing units. The timing of the announcement of the raise is also not coincidental: it comes a week after a successful joint trial of Xsight processors with SpaceX. The processors were incorporated into SpaceX’s new satellite, the V3. Xsight’s X2 is fully programmable by the customer. This flexibility makes it suitable for use in space, where breakdowns occur that make control of the software a necessity.

Xsight says that the new capital " will accelerate the multi-generational switch and DPU roadmap, including support for emerging Ultra Ethernet Consortium (UEC) standards; grow engineering and customer support teams across the US, Israel, Europe, and Asia to support this rapid expansion; and scale manufacturing, supply chain, and customer delivery operations to fulfill high-volume Tier-1 customer orders."

Published by Globes, Israel business news - en.globes.co.il - on July 30, 2026.