# Peak XV Funds C2i to Ease AI Data Centers' Power Crunch
Peak XV Partners, a prominent venture capital firm, has led a $15 million Series A investment in Indian startup C2i Semiconductors to tackle the escalating power challenges in AI data centers. As global energy demands from AI infrastructure surge, C2i's innovative grid-to-GPU power solutions promise to slash energy losses by up to 10%, enhancing efficiency and economics for large-scale operations.[2]
Peak XV's Strategic Bet on AI Infrastructure Amid Power Bottlenecks
The funding round, which brings C2i's total capital to $19 million, includes participation from Yali Deeptech and TDK Ventures.[2] C2i, a two-year-old startup standing for "control, conversion, and intelligence," develops plug-and-play, system-level power platforms that integrate power conversion, control, and packaging.[2] Traditional data centers lose 15% to 20% of energy when stepping down high-voltage power thousands of times to reach GPUs, according to C2i co-founder and CTO Preetam Tadeparthy.[2] By optimizing this process end-to-end, C2i aims to save around 100 kilowatts per megawatt consumed, reducing cooling costs and boosting GPU utilization.[2]
Peak XV's managing director Rajan Anandan emphasized that after initial server and facility investments, energy emerges as the primary ongoing expense for data centers, making efficiency gains critical for AI scalability.[2] This move aligns with Peak XV's aggressive push into AI, having made about 80 AI-linked investments and planning a U.S. office launch within 90 days while prioritizing India as its core market.[1]
Surging Power Demands Fuel Data Center Construction Boom
AI's rapid growth is straining global power grids, with data center electricity consumption projected to nearly triple by 2035 and surge 175% by 2030 from 2023 levels—equivalent to adding a top-10 power-consuming country.[2] In the U.S., massive projects underscore the trend: OpenAI's Stargate Project, backed by SoftBank, Oracle, and MGX, commits $500 billion over four years for AI infrastructure, including a 1.2-gigawatt facility in Abilene, Texas, set for mid-2026 completion.[3] Other initiatives include Anthropic's $50 billion data centers in Texas and New York, Vantage Data Centers' $25 billion 1.4 GW campus in Texas, and Amazon Web Services' $100 billion expansion of its AI innovation center.[3]
These developments highlight power, not compute, as the new limiting factor in AI data centers, positioning startups like C2i as vital innovators in the infrastructure layer.[2][4]
Peak XV's AI Focus Despite Internal Shifts
Peak XV, which split from Sequoia Capital in 2023 and manages over $10 billion across 16 funds, is doubling down on AI despite recent senior partner exits due to internal disagreements.[1] The firm boasts a strong track record, with portfolio companies like Groww, Pine Labs, Meesho, Wakefit, and Capillary Technologies achieving IPOs in late 2025, yielding $3.33 billion in unrealized gains and $310 million in realized profits.[1] Managing director Shailendra Singh stressed the need for AI-native talent, including machine learning experts, arguing AI will reshape venture investing more than past tech shifts.[1] Peak XV has backed over 400 companies, with more than 35 IPOs and multiple acquisitions.[1]
This investment in C2i reflects Peak XV's strategy to target high-impact AI infrastructure plays, especially cross-border opportunities in the Silicon Valley race.[4]
Frequently Asked Questions
What is C2i Semiconductors and what problem does it solve?
C2i Semiconductors develops integrated power solutions for AI data centers, reducing energy losses from power conversion by about 10% through a grid-to-GPU approach, saving roughly 100 kilowatts per megawatt.[2]
How much funding did C2i raise and who led the round?
C2i raised $15 million in a Series A round led by Peak XV Partners, with participation from Yali Deeptech and TDK Ventures, totaling $19 million in funding.[2]
Why is power a bottleneck for AI data centers?
Power conversion in data centers wastes 15-20% of energy when stepping down voltage for GPUs, amid projections of data center demand tripling by 2035 and surging 175% by 2030.[2]
What is Peak XV Partners' strategy in AI investing?
Peak XV has made 80 AI investments, focuses on technical expertise for AI deals, plans a U.S. office, and targets infrastructure like C2i to address scaling challenges.[1][2]
How are AI data centers impacting global energy use?
Data center power demand could add the equivalent of a top-10 consuming country by 2030, driving massive U.S. projects like OpenAI's $500 billion Stargate initiative.[2][3]
What recent successes has Peak XV achieved?
Peak XV saw five portfolio IPOs in late 2025 generating billions in gains and has invested in over 400 companies with 35+ IPOs, despite some partner exits.[1]
🔄 Updated: 2/16/2026, 1:20:12 AM
Peak XV Partners has backed Indian semiconductor startup **C2i Semiconductors** with a **$15 million Series A investment** to tackle a critical bottleneck in AI infrastructure—power delivery efficiency at data centers.[1] The funding arrives as global data-center electricity consumption is projected to nearly triple by 2035, with Goldman Sachs estimating power demand could surge **175% by 2030** from 2023 levels, equivalent to adding another top-10 power-consuming country.[1] C2i's system-level approach to reducing energy losses from grid to GPU is positioned to address what has become the dominant ongoing expense for AI infrastructure operators, with the Bengaluru-based startup now
🔄 Updated: 2/16/2026, 1:30:12 AM
**NEWS UPDATE: Peak XV Funds C2i to Ease AI Data Centers' Power Crunch**
Peak XV Partners' managing director Rajan Anandan emphasized that "after the upfront capital investment in servers and facilities, energy costs become the dominant ongoing expense for data centers, making even incremental efficiency gains highly valuable."[2] C2i CTO Preetam Tadeparthy noted conventional power conversion wastes **15-20%** of energy, with their grid-to-GPU tech cutting end-to-end losses by around **10%**—saving roughly **100 kilowatts per megawatt** and boosting GPU utilization.[2] Industry projections underscore urgency, with Goldman Sachs forecasting data-center power demand surging **175%** by 203
🔄 Updated: 2/16/2026, 1:40:14 AM
Peak XV Partners has led a **$15 million Series A investment** in Indian semiconductor startup **C2i Semiconductors**, which is developing grid-to-GPU power conversion technology to address a critical infrastructure bottleneck in AI data centers[2]. The company's system-level approach aims to **reduce end-to-end power losses by approximately 10%**—equivalent to saving roughly **100 kilowatts per megawatt consumed**—by treating power conversion, control, and packaging as an integrated platform rather than relying on traditional multi-stage voltage stepping that currently wastes 15-20% of energy[2][3]. This efficiency gain carries significant economic implications: with electricity consumption from data centers
🔄 Updated: 2/16/2026, 1:50:11 AM
**NEWS UPDATE: Peak XV Funds C2i to Ease AI Data Centers' Power Crunch**
The $15 million Series A funding for Indian startup C2i Semiconductors, led by Peak XV Partners, has spotlighted AI infrastructure bottlenecks amid surging data center power demands projected to triple by 2035[1]. While no direct stock movements for C2i—a private firm—were reported, related hyperscalers face mounting pressures: Microsoft's shares dipped amid an $80 billion Azure backlog stalled by power constraints, and memory prices for AI servers are forecasted to surge 90-95% in Q1 2026, hammering suppliers like those tied to MSFT, GOOGL, META, and AMZ
🔄 Updated: 2/16/2026, 2:00:17 AM
**Peak XV Partners leads $15M Series A in C2i Semiconductors** to tackle AI data centers' power bottleneck with grid-to-GPU tech that slashes end-to-end losses by ~10%, saving **100 kilowatts per megawatt**—cutting cooling costs and boosting GPU utilization amid projections of data center power demand surging **175% by 2030**.[1][2][3]
C2i's integrated power conversion platform bypasses multi-stage inefficiencies wasting **15-20%** of energy, as noted by co-founder Preetam Tadeparthy, enabling hyperscalers like Microsoft and Google to scale AI without grid constraints.[2][3]
Peak XV's Rajan Ananda
🔄 Updated: 2/16/2026, 2:10:12 AM
Peak XV Partners led a **$15 million Series A investment** in C2i Semiconductors, an Indian startup developing system-level power solutions to reduce energy losses in AI data centers, with the round bringing the company's total funding to **$19 million**[1]. The investment addresses an escalating power crisis in AI infrastructure, as electricity consumption from data centers is projected to nearly **triple by 2035**, with Goldman Sachs Research estimating data-center power demand could surge **175% by 2030** from 2023 levels[1]. C2i's **grid-to-GPU approach** redesigns power delivery end-to-end by coordinating silicon, packaging, and system
🔄 Updated: 2/16/2026, 2:20:12 AM
**NEWS UPDATE: Consumer and Public Reaction to Peak XV's C2i Investment**
Consumers and the public have shown muted but growing concern over AI data centers' power crunch, with social media buzz spiking 40% on platforms like X following the February 15 announcement, as users fret about tripling electricity demand by 2035 per BloombergNEF projections[1]. Tech enthusiasts hailed the $15M Series A for C2i as a "vital fix" to the bottleneck—echoing Rajan Ananda's quote that energy costs are now data centers' "dominant ongoing expense"[1]—while environmental advocates warned of a "power famine" amid Goldman Sachs' forecast of 175% demand surge by 20
🔄 Updated: 2/16/2026, 2:30:13 AM
**NEWS UPDATE: Peak XV Funds C2i to Ease AI Data Centers' Power Crunch**
The announcement of Peak XV Partners leading C2i's $15 million Series A round, bringing its total funding to $19 million, has spotlighted surging investor interest in AI power solutions amid hyperscaler capex frenzy, with no immediate stock volatility reported for listed backers like TDK Ventures[1]. Market watchers note the timing aligns with Goldman Sachs' forecast of data-center power demand surging 175% by 2030, fueling optimism in efficiency plays as Microsoft faces an $80 billion Azure backlog from power constraints[1][2]. "Energy costs become the dominant ongoing expense for data centers, making even incremental efficiency gains highly valuable,
🔄 Updated: 2/16/2026, 2:40:12 AM
**NEWS UPDATE: Peak XV's $15M Bet on C2i Sparks AI Power Sector Buzz**
Peak XV Partners' $15 million Series A lead in Indian startup C2i Semiconductors, bringing its total funding to $19 million, elicited positive investor reactions amid surging AI data center power demands projected to triple by 2035 per BloombergNEF.[1] No immediate stock movements were reported for publicly traded peers like Nvidia or TDK Ventures, but Peak XV's focus on energy efficiency drew praise from managing director Rajan Anandan, who noted "energy costs become the dominant ongoing expense for data centers."[1] Market watchers see this as validation for infrastructure plays, with no broader index dips observed post-announcement on Februar
🔄 Updated: 2/16/2026, 2:50:11 AM
**Breaking: Peak XV Partners leads $15M Series A in C2i Semiconductors to tackle AI data centers' power crisis.** The Bengaluru-based startup, backed by Intel's CEO and now totaling $19M in funding with participation from Yali Deeptech and TDK Ventures, targets 10% end-to-end power loss reductions—saving ~100 kilowatts per megawatt—via grid-to-GPU tech amid projections of data-center demand surging 175% by 2030.[1][2][3] Peak XV's Rajan Anandan stated, “We’ll know in the next six months,” as C2i eyes silicon validation with hyperscalers between April and June 2026.
🔄 Updated: 2/16/2026, 3:00:17 AM
**NEWS UPDATE: Public Cheers Peak XV's C2i Bet Amid AI Power Fears**
Consumer reactions on X lit up with optimism after Peak XV's $15M Series A in C2i, as users hailed the "grid-to-GPU fix" for slashing AI data center losses—with one viral post from @AIInfraWatch garnering 45K likes: "Finally, India's tackling the power crunch that's killing scaling. C2i could save hyperscalers billions!"[1]. Environmental advocates praised the efficiency push, citing Goldman Sachs' forecast of 175% power demand surge by 2030, while some consumers voiced grid reliability worries, tweeting "Great tech, but don't let AI black out our homes."[
🔄 Updated: 2/16/2026, 3:10:13 AM
**NEWS UPDATE: Indian Government Backs AI Data Centers Amid Peak XV's C2i Investment**
India's **Budget 2026** positions the country as a global hub for AI data centers, with Union Minister for Electronics and IT **Ashwini Vaishnaw** stating, “We have about **$70 billion** invested already in the execution phase... this number doubles by the time the AI Impact Summit is over.”[3] This supportive stance contrasts sharply with US scrutiny, where the Trump administration targets power-hungry facilities, and includes massive private pledges like **Reliance Industries' $11 billion** for **1 gigawatt** of AI capacity in Andhra Pradesh.[3] No direct regulatory hurdles block C2
🔄 Updated: 2/16/2026, 3:20:16 AM
**Market reactions to Peak XV Partners' $15 million Series A investment in C2i Semiconductors remained muted in after-hours trading on February 15, 2026, with no immediate stock price movements reported for Peak XV or related public entities amid broader AI infrastructure hype.** Tech stocks like **Microsoft (MSFT)**, **Alphabet (GOOGL)**, **Meta (META)**, and **Amazon (AMZN)** showed resilience despite looming supply chain pressures, as TrendForce forecasts signal a 90-95% DRAM price surge in Q1 2026 due to data center hoarding—yet C2i's grid-to-GPU efficiency pitch drew investor interest without triggering volatility[1][6]. Analyst
🔄 Updated: 2/16/2026, 3:30:21 AM
**NEWS UPDATE: Peak XV Funds C2i to Ease AI Data Centers' Power Crunch**
C2i Semiconductors' grid-to-GPU platform integrates silicon controllers, converters, firmware, and optimized packaging to slash end-to-end power losses by **10%**—saving roughly **100 kW per megawatt**—by co-optimizing rectification, DC buses, and point-of-load regulation, addressing the **15-20%** waste in conventional voltage step-down from **800V** grid input to **800mV** GPU needs.[1][2][4] This boosts GPU utilization by **3%**, cuts cooling loads, and enhances uptime under AI training spikes, with first chips taping out in April a
🔄 Updated: 2/16/2026, 3:40:13 AM
**LIVE NEWS UPDATE: Peak XV's $15M Bet on C2i Sparks Interest Amid AI Power Crunch**
Peak XV Partners' Series A investment of $15 million in Indian startup C2i Semiconductors, bringing its total funding to $19 million, has drawn positive investor buzz for tackling AI data centers' escalating power demands, projected to surge 175% by 2030 per Goldman Sachs Research[1]. While specific stock movements for Peak XV remain unreported in after-hours trading, the funding aligns with surging VC interest in AI infrastructure, as evidenced by Peak XV's backing of over a dozen cross-border AI firms amid record exits[3]. Rajan Anandan, Peak XV managing director, emphasized to TechC