Fungible raises $200 million led by SoftBank Vision Fund to help companies handle increasingly massive amounts of data

Published June 27, 2019

Fungible, a startup that wants to help data centers cope with the increasingly massive amounts of data produced by new technologies, has raised a $200 million Series C led by SoftBank Vision Fund, with participation from Norwest Venture Partners and its existing investors. As part of the round, SoftBank Investment Advisers senior managing partner Deep Nishar will join Fungible’s board of directors.

Founded in 2015, Fungible now counts about 200 employees and has raised more than $300 million in total funding. Its other investors include Battery Ventures, Mayfield Fund, Redline Capital and Walden Riverwood Ventures. Its new capital will be used to speed up product development. The company’s founders, CEO Pradeep Sindhu and Bertrand Serlet, say Fungible will release more information later this year about when its data processing units will be available and their on-boarding process, which they say will not require clients to change their existing applications, networking or server design.

Sindu previously founded Juniper Networks, where he held roles as chief scientist and CEO. Serlet was senior vice president of software engineering at Apple before leaving in 2011 and founding Upthere, a storage startup that was acquired by Western Digital in 2017. Sindu and Serlet describe Fungible’s objective as pivoting data centers from a “compute-centric” model to a data-centric one. While the company is often asked if they consider Intel and Nvidia competitors, they say Fungible Data Processing Units (DPU) complement tech, including central and graphics processing units, from other chip makers.

Sindhu describes Fungible’s DPUs as a new building block in data center infrastructure, allowing them to handle larger amounts of data more efficiently and also potentially enabling new kinds of applications. Its DPUs are fully programmable and connect with standard IPs over Ethernet local area networks and local buses, like the PCI Express, that in turn connect to CPUs, GPUs and storage. Placed between the two, the DPUs act like a “super-charged data traffic controller,” performing computations offloaded by the CPUs and GPUs, as well as converting the IP connection into high-speed data center fabric.

This better prepares data centers for the enormous amounts of data generated by new technology, including self-driving cars, and industries such as personalized healthcare, financial services, cloud gaming, agriculture, call centers and manufacturing, says Sindu.

In a press statement, Nishar said “As the global data explosion and AI revolution unfold, global computing, storage and networking infrastructure are undergoing a fundamental transformation. Fungible’s products enable data centers to leverage their existing hardware infrastructure and benefit from these new technology paradigms. We look forward to partnering with the company’s visionary and accomplished management team as they power the next generation of data centers.”