New Delhi, March 11 -- As generative AI drives an unprecedented wave of data centre expansion, networking infrastructure is emerging as one of the most critical, and often overlooked, layers of the AI stack. While GPUs and compute clusters dominate headlines, the ability of data centre networks to move data efficiently between thousands of AI accelerators is becoming central to overall system performance.

Against this backdrop, Nexthop AI, a company focused on AI and cloud networking infrastructure, has raised $500 million in a Series B funding round, pushing its valuation to $4.2 billion. The round was led by Lightspeed Venture Partners, with Andreessen Horowitz joining as a major investor, alongside Altimeter and existing backers.

The...