According to reports, chip startup Retym has raised $75 million this year as part of $180 million in total funding the company is using to pursue networking chips for artificial intelligence computing in data centers.

Retym manufactures chips for digital signal processing (DSP), enabling rapid information transfer between large data centers, a function that has gained significance with the rising interest in AI.

Developing the foundational AI models that drive systems like ChatGPT necessitates the connection of thousands of chips with networking gear.

Currently, the market for the DSP chips that Retym is developing is led by Marvell Technology.

The chip Retym - pronounced re-time - that is being developed will assist in addressing a bottleneck that has emerged in data centers, according to chief executive Sachin Gandhi. As many chips need to collaborate on AI computing tasks, their connectivity is becoming more critical.

“We are concentrating on developing cohesive DSP chips for the upcoming generation of AI infrastructure and cloud deployment,” Gandhi says.

Retym's initial chip will be created to transfer data within distances of 10 kilometers to 120 kilometers, but it will be fine-tuned for 30 kilometers to 40 kilometers. The DSP chip being developed by Retym employs a modulation method to guarantee the integrity of the transmitted data.

"They opted for the method of addressing the more challenging issue with greater distances," says Navin Chaddha, managing partner at Mayfield, a venture capital fund that has backed Retym.

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The Series D financing round was spearheaded by Spark Capital. Retym started four years back and aims to introduce its initial product to the market this year.