Unique: Israeli chip firm proteanTecs is presently elevating $50 million at an organization valuation of over $600 million. Sources have instructed “Globes,” that the Haifa-based firm, which was based by veteran Mellanox executives, has signed a number of agreements with a number of the world’s largest chip producers, together with Microsoft and Annapurna Labs, which design graphics processors, and fashioned partnerships with chip manufacturing vegetation like TSMC, Intel and World Foundries.
The funding gives proteanTecs with a comparatively low a number of, round 10 instances the corporate’s annual gross sales, that are estimated at over $60 million – a a number of just like that of different chip corporations. AMD’s income a number of, for instance, is six, TSMC’s is seven, and Nvidia’s determine is 20.
proteanTecs helps Microsoft and Annapurna Labs, Amazon’s processor division, in addition to different chip producers, observe chip efficiency over time, monitor particular issues and repair them remotely. A brand new function attributed to a proteanTecs part solves a important downside for cloud giants, the biggest shoppers of GPUs for working AI companies. The Israeli firm’s monitoring part can scale back the facility consumption of AI servers by as much as 14% – and within the course of save thousands and thousands of {dollars} in AI processing prices.
Based on estimates, proteanTecs is liable for bettering the efficiency of thousands and thousands of GPUs for coaching AI fashions and inference, in addition to core processors in servers within the information facilities of know-how giants. The launch of the part has introduced the corporate quite a few new agreements.
Amongst corporations taking an curiosity in proteanTecs is graphics processor large Nvidia, which is contemplating buying the Israeli firm’s product. Nvidia has been in talks with proteanTecs for a while, however has not but reached an settlement. There’s a historic connection between the 2 corporations. proteanTecs’ founders, together with CEO Shai Cohen and CTO Evelyn Landman, are former founders of Mellanox, which was bought to Nvidia in 2020 for $6.9 billion. Different founders are COO Ron Ashuri, silicon applied sciences principal senior engineer Eyal Fayneh VP software program improvement Yuval Bonen, and machine studying principal engineer Dr. Yahel David. Cohen even served as a senior govt at Mellanox till he was ousted by Starboard, the activist investor that took over the corporate’s board of administrators earlier than its sale. The 2 are mates with the senior group at Nvidia Israel, together with Amit Krig and Michael Kagan, and have maintained shut contact since leaving Mellanox.
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Senior backers
Among the many early traders in proteanTecs was Intel’s new CEO Lip-Bu Tan, who additionally serves as a director. Tan invested within the firm in 2019 alongside together with his former Israeli funding companion, serial chip entrepreneur Avigdor Willenz. Based on the enterprise capital database PitchBook, the Israeli firm was pressured to compromise and scale back its valuation from $558 million in September 2021 to solely $184 million in Might 2022. However this newest $50 million financing spherical boosts the corporate’s valuation to over $600 million. The corporate has raised $250 million thus far.
Along with Tan, the corporate boasts different senior board members together with Lee Fixel, a US investor who beforehand served as a companion at Tiger World and invested in corporations akin to Fb, Stripe and Spotify. proteanTec’s advisory board consists of former Intel SVP and World; Foundries SVP Amir Faintuch, now Volumez CEO; David Perlmutter, additionally a former Intel SVP; Raanan Gewirtzman, former CEO of Broadlight, which was bought to Broadcom; and Veijo Kontas, former head of {hardware} improvement at Nokia chips.
Different proteanTecs board members embody Viola’s Shlomo Dovrat and Zvika Orron, Intel Capital’s Noam Kaiser, and Koch Disruptive Applied sciences (KDT) Isaac Sigron. The corporate has an estimated 200 staff, in improvement facilities in Haifa and Tel Aviv, assist facilities in India, and advertising and marketing and gross sales workplaces within the US, East Asia and Europe.
The corporate declined to touch upon this report.
Printed by Globes, Israel enterprise information – en.globes.co.il – on Might 8, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
