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Relativity Networks Raises $22 Million As AI Data Centers Go Bigger

Relativity Networks has raised $22 million as it develops hollow-core fiber technology designed to transmit data faster than conventional fiber and potentially expand where large AI data centers can be built.

The funding, announced Tuesday, was raised through SAFE notes from Rhapsody Venture Partners, Bell Ventures and Faster Than Glass, among others. The company also secured a $40 million follow-on order from an unnamed leading hyperscaler.

Faster Fiber, Lower Latency

Relativity Networks uses hollow-core fiber, a technology that sends light through a hollow chamber rather than traditional glass fiber. The company says this can make data transmission around 30% faster.

According to CEO Jason Eisenholz, a signal takes roughly five microseconds to travel one kilometre through conventional fiber. Hollow-core fiber can reduce that to about 3.5 microseconds.

That difference becomes increasingly important as AI systems grow. Instead of keeping GPUs within a single data center, operators are increasingly spreading computing capacity across multiple buildings or campuses because of power and space constraints.

Extending The Reach Of AI Data Centers

Relativity believes its technology could help connect separate data centers and allow them to function as a single, synchronized system.

Reducing latency by 30% could effectively allow compute infrastructure to span greater distances before network delays become a major limitation.

“The first era of AI optimized for compute,” Eisenholz said. “The second era optimized the networking inside the data center. The third era that we see coming is optimizing the geography.”

Paramount Closes $110 Billion Warner Bros. Discovery Deal, Creating Skydance Entertainment Giant

Paramount has completed its $110 billion acquisition of Warner Bros. Discovery, bringing together two of the most powerful names in media under a new combined company, Skydance. The deal, announced Tuesday, creates one of the largest entertainment mergers ever completed and reshapes the competitive landscape across streaming, film, television and cable.

A New Power Center In Global Entertainment

The combined company unites Paramount+ and HBO Max, alongside a broad portfolio of networks that includes CBS, CNN, MTV, TBS, Comedy Central and Food Network. It also gives Skydance control over some of the industry’s most valuable franchises, including The Lord of the Rings, Game of Thrones, the DC Universe and Yellowstone.

For the industry, the scale of the transaction is as significant as the assets themselves. In an era defined by streaming competition and rising content costs, ownership of established intellectual property has become a strategic advantage akin to controlling a premium distribution network in a previous media cycle.

Ellison Expands His Influence

The merger places one of the world’s largest entertainment studios under the control of David Ellison, who only last year completed the combination of Skydance Media and Paramount. With this latest transaction, Ellison is accelerating his rise as one of Hollywood’s most influential executives.

The Ellison family remains Skydance’s largest shareholder, backed by the financial power of Larry Ellison, the Oracle co-founder and David Ellison’s father. That support gives the company considerable flexibility as it integrates two sprawling media businesses and seeks to compete more aggressively across platforms.

Legal Hurdles Cleared Before Closing

The deal’s completion follows settlements with a coalition of U.S. states and a Hollywood writers’ union, removing the principal legal obstacles that had threatened to delay or derail the merger.

Paramount first announced in February that it would pursue Warner Bros. Discovery after a bidding contest with Netflix, which had earlier struck its own agreement to acquire Warner Bros.’ film and television studios and streaming operations, excluding the cable networks. Paramount strengthened its offer by promising shareholders additional cash if the deal failed to close by a set deadline and by agreeing to cover the breakup fee owed to Netflix.

What Skydance Says Comes Next

“Today is a historic day, not just for Skydance but for our entire industry,” Ellison said in a statement. “From the start, our ambition was to bring these two storied studios together and create a stronger competitor, with the talent, resources, and reach to tell great stories in every genre, on every platform, for audiences everywhere. Our focus now turns to the future: building a company that empowers creatives, entertains audiences and rewards shareholders. We couldn’t be more excited to get to work.”

Skydance said the combined company will generate nearly $70 billion in annual revenue. The company’s Class B shares are set to begin trading on the New York Stock Exchange today under the ticker symbol SKYD.

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