Nvidia Backs Networking Software Startup Arrcus’s Latest Round

(Bloomberg) -- Networking software startup Arrcus Inc. raised $27 million from investors including Nvidia Corp., gaining funds to build out its platform that lets companies more effectively manage data traffic.

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Saudi Aramco’s venture arm Prosperity7 Ventures, Hitachi Ventures, General Catalyst and others participated in the round, the San Jose, California-based startup said on Thursday. It has 50 customers including SoftBank Corp. and Target Corp., and said it plans use the capital to expand globally and improve its technology.

As the adoption of artificial intelligence picks up pace, the networks that connect enterprises, data centers and users need to evolve to handle the growing traffic. Arrcus’s software plays a role in optimizing the flow of data.

“The funding is an obvious recognition that, as the AI juggernaut rolls on, the network has become a key part of how enterprises are thinking about the evolution of their AI architecture,” Arrcus Chief Executive Officer Shekar Ayyar said in an interview. Companies “are searching for smart ways to use the processors and hardware more efficiently.”

Arrcus collaborates with Nvidia, Broadcom Corp., Intel Corp. and others. The startup has about 150 employees, a third of them in Bangalore. In early 2023, it raised $50 million and later on disclosed an expansion of that Series D round.

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