AI startup Nexthop AI raises $500 million in funding round led by Lightspeed Venture

On March 11, Bloomberg reported that Nexthop AI—an artificial intelligence (AI) infrastructure startup—has raised $500 million in a funding round led by Lightspeed Venture Partners, part of the ongoing wave of investment in expanding AI computing capabilities. The firm, which supplies network hardware and software for AI data centers, now holds a valuation of $4.2 billion post-funding. Andreessen Horowitz joined the round, alongside all existing investors including Altimeter Capital and Kleiner Perkins. Founded in 2024 by Anshul Sadana (former COO of Arista Networks Inc.), Nexthop is building network systems for both intra-data center and inter-data center connectivity. Sadana noted the technology is designed to handle more network traffic with lower power consumption and latency. The startup is currently partnering with major data center operators to better address their needs.