Xsight Labs

Who is behind Xsight Labs

Xsight Labs was founded in 2017 in Tel Aviv, with additional development sites in Kiryat Gat and Haifa and offices in the United States and Armenia. According to the company's official leadership page, its founders include Gal Malach, who serves as CTO, and Erez Shaizaf. Both came from backgrounds at Mellanox and EZchip. The founding investor and chairman of the board is Avigdor Willenz, the same chip entrepreneur who is also behind Annapurna Labs, Habana Labs and Element Labs.

E1 and X2: a data processor and a switch for AI data centers

Training a large model does not happen on a single chip but on thousands of accelerators working in parallel, and they must pass huge amounts of data between them at every computing step. When the network between them is too slow, the expensive accelerators simply wait. Xsight Labs' two main products are meant for this gap: a programmable network switch called X2, and a data processing unit (DPU) called E1. According to the company's official announcement from July 2026, the E1 was the world's first DPU to process 800G (800 gigabits per second) at full line rate, and it passed an industry certification test while supporting more than 14 million connections per second.

The selling point: less power, not only more speed

According to the same announcement, the E1 runs in a power range below 75 watts while keeping 4 times the performance per watt compared with a previous generation, and the X2 runs under 200 watts with latency of less than 700 nanoseconds and 40% lower power use than previous generations. In data centers where power supply and cooling have become a limit in their own right, sometimes more than the availability of chips, this is a key selling point, no less than speed.

The July 2026 round: led by Fidelity, $2.8 billion

In July 2026 the company officially announced that it had completed a round of more than $300 million at a company valuation of $2.8 billion. The round was led by Fidelity Management & Research Company, with new and existing investors including Intel's investment arm. Yossi Meyouhas, the company's CEO, said the funding "reflects the market need for a high-performance alternative to closed, legacy architectures".

The race for AI networking infrastructure

In the Israeli context, the company continues a long tradition of developing high-speed network components, the field in which Mellanox, bought by Nvidia in 2020, also worked. It is one piece of evidence that Israel's edge in hardware is concentrated in communication and connectivity, not only in the computing chips themselves. As of 2026 it is one of the largest private chip companies in Israel.