Eridu Emerges from Stealth with Major Funding
Drew Perkins, a seasoned entrepreneur with a history of innovation in computer networking since the internet's early days, has co-founded a new AI networking startup named Eridu. The company is officially exiting stealth mode today, announcing an oversubscribed $200 million Series A funding round. This significant investment was led by Socratic Partners and included notable venture capitalists like John Doerr and Matter Venture Partners. With this latest round, Eridu has now secured a total of $230 million in funding.
A Legacy of Networking Innovation
Perkins' career began in the 1980s, where he played a crucial role in developing the Point-to-Point Protocol (PPP), a foundational component of the internet's TCP/IP protocol suite. His entrepreneurial journey includes co-founding Lightera Networks, an optical switch company acquired by Ciena for over $500 million in 1999. He also co-founded Infinera, which went public and was later acquired by Nokia for $2.3 billion in 2025. Further ventures include Gainspeed, also acquired by Nokia, and the augmented reality startup Mojo Vision.
The AI Bottleneck and Eridu's Vision
Following the public release of OpenAI's ChatGPT, Perkins experienced an epiphany regarding the future of AI development. A conversation with OpenAI CEO Sam Altman in February 2023 highlighted the critical role of massive compute power, initially requiring thousands and now millions of GPUs. Perkins realized that the primary bottleneck wouldn't just be chip availability but rather how these chips communicate within complex systems. This insight spurred the need for a radical reimagining of network infrastructure, from the fundamental design of networks and equipment to the silicon itself.
Founding Eridu and Redefining AI Networking
By late 2023, Perkins joined forces with Omar Hassen, a co-founder with extensive experience in networking chip design for industry giants like Broadcom and Marvell. Together, they established Eridu in 2024, embarking on a mission to rebuild computer networking from the ground up. Their approach centers on designing new silicon specifically for AI workloads, integrating advanced networking functionalities directly onto the chips.
Eridu's System Architecture and Benefits
Eridu aims to provide complete systems for AI data centers, capable of replacing traditional network equipment providers. Their innovative design will minimize the need for multiple tiered optical connections by enabling more communication directly on the chip. Current networking architectures often require adding more hardware as demand increases, leading to more data 'hops,' increased latency, and slower response times – a direct contributor to the delays users experience when interacting with AI models.
Perkins explained that Eridu's approach places more networking functions directly onto the chip. "So now I'm saving a ton of power, I'm saving a ton of cost, and then my network is much more reliable because the optics are the least reliable part of the network," he stated. He also pointed out the significant disparity in advancement rates between AI compute and traditional networking hardware: "GPU compute and memory bandwidth are improving by roughly 10x per year, while data center switches from Broadcom, Marvell, Cisco, etc. are still only improving 2–3x every 2–3 years."
Investor Confidence and Future Outlook
The founding team leveraged Perkins' existing relationships with venture capitalists, securing Wen Hsieh, founding managing partner of Matter Venture Partners, as an early key investor. Hsieh's involvement led to interest from John Doerr, a legendary investor who had previously backed one of Perkins' startups, further amplifying investor enthusiasm. Perkins described the fundraising process as highly successful, with the round being significantly oversubscribed. While valuation details were not disclosed, Perkins indicated it was competitive for a Series A round, reflecting confidence in Eridu's potential.
With approximately 100 employees, Eridu is positioned to play a critical role in the ongoing massive expansion of data centers, especially those dedicated to AI. The company's strength lies not only in its innovative technology but also in the deep experience of its founding team, a rare and valuable asset in Silicon Valley today. This combination of cutting-edge technology and seasoned leadership bodes well for Eridu's future success. Additional investors in the round include Hudson River Trading, Capricorn Investment Group, SBVA, MediaTek, Bosch Ventures, TDK Ventures, Eclipse, and VentureTech Alliance, an investment arm of TSMC.
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