HomeRelativity Networks Secures $22M to Deploy High-Speed Fiber for Data Centers
Industry forecasts project data center developers will invest up to $4 trillion by decade’s end, yet site selection remains heavily restricted by political factors and power-grid limitations. While fiber speed is typically taken for granted, one firm is wagering that faster fiber could fundamentally alter the geographic strategy behind data center expansion.
On Tuesday, Relativity Networks announced $22 million in SAFE note funding led by Rhapsody Venture Partners, Bell Ventures Inc., and Faster Than Glass LLC, among other investors. A SAFE note converts into equity during the company’s first priced round, a standard mechanism for pre-seed and seed-stage financing. Additionally, the company secured a $40 million follow-on order from a major hyperscaler, which requested anonymity.
Relativity Networks specializes in hollow-core fiber, a niche technology that transmits data 30% faster than traditional fiber. Unlike conventional fiber, which guides light through glass, hollow-core fiber channels light through a vacuum core, bringing transmission speeds closer to the theoretical limit of light.
This improvement translates to microseconds. CEO Jason Eisenholz notes that signals take approximately five microseconds to travel one kilometer via conventional fiber. Switching to hollow-core technology reduces this latency to just 3.5 microseconds.
When AI workloads were confined to single GPU racks, fiber latency was negligible. However, as scale increases, so does the physical distance between GPUs. Modern data center campuses often span hundreds of acres and multiple buildings. Eisenholz identifies a key opportunity in multi-campus deployments, where existing facilities are interconnected to function as a single unit.
“The largest systems distribute compute across multiple campuses to access available power,” he explains to TechCrunch. “They are moving into existing structures, but they must still operate as one synchronized machine.”
This approach offers a partial solution to the spatial constraints limiting many current data center projects. By reducing latency by 30%, developers can span distances 30% larger before performance degrades. As compute projects grow, Eisenholz believes this represents a significant industry shift.
“The first AI era optimized for raw compute,” he states. “It focused on GPUs. The second era optimized internal data center networking to leverage that compute. The emerging third era is optimizing geography.”
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Industry forecasts project data center developers will invest up to $4 trillion by decade’s end, yet site selection remains heavily restricted by political factors and power-grid limitations. While fiber speed is typically taken for granted, one firm is wagering that faster fiber could fundamentally alter the geographic strategy behind data center expansion.
On Tuesday, Relativity Networks announced $22 million in SAFE note funding led by Rhapsody Venture Partners, Bell Ventures Inc., and Faster Than Glass LLC, among other investors. A SAFE note converts into equity during the company’s first priced round, a standard mechanism for pre-seed and seed-stage financing. Additionally, the company secured a $40 million follow-on order from a major hyperscaler, which requested anonymity.
Relativity Networks specializes in hollow-core fiber, a niche technology that transmits data 30% faster than traditional fiber. Unlike conventional fiber, which guides light through glass, hollow-core fiber channels light through a vacuum core, bringing transmission speeds closer to the theoretical limit of light.
This improvement translates to microseconds. CEO Jason Eisenholz notes that signals take approximately five microseconds to travel one kilometer via conventional fiber. Switching to hollow-core technology reduces this latency to just 3.5 microseconds.
When AI workloads were confined to single GPU racks, fiber latency was negligible. However, as scale increases, so does the physical distance between GPUs. Modern data center campuses often span hundreds of acres and multiple buildings. Eisenholz identifies a key opportunity in multi-campus deployments, where existing facilities are interconnected to function as a single unit.
“The largest systems distribute compute across multiple campuses to access available power,” he explains to TechCrunch. “They are moving into existing structures, but they must still operate as one synchronized machine.”
This approach offers a partial solution to the spatial constraints limiting many current data center projects. By reducing latency by 30%, developers can span distances 30% larger before performance degrades. As compute projects grow, Eisenholz believes this represents a significant industry shift.
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