tech
February 16, 2026
As AI data centers hit power limits, Peak XV backs Indian startup C2i to fix the bottleneck
C2i has raised $15 million as it tests a grid-to-GPU approach to reducing power losses in AI data centers.
TL;DR
- Power consumption is a growing limiting factor for AI data centers, with electricity demand projected to nearly triple by 2035.
- C2i Semiconductors, an Indian startup, has raised $15 million in a Series A funding round led by Peak XV Partners.
- The startup is developing integrated, plug-and-play power solutions designed to cut energy losses from the data center bus to the GPU.
- C2i estimates its system-level approach can reduce end-to-end power losses by approximately 10%, leading to significant cost savings.
- The company's first silicon designs are expected to return from fabrication between April and June, with validation by data center operators and hyperscalers to follow.
- India's semiconductor design ecosystem is maturing, with increasing engineering talent and government incentives supporting startups like C2i.
Continue reading
the original article