Relativity Networks Raises Funds to Scale Next-Generation Fiber Optics for the AI Economy's Data and Energy Needs
Hollow-Core Fiber technology can transmit data nearly 50% faster and farther than conventional solid-core fiber for hyperscalers and telecommunications providers
ORLANDO, Fla., Feb. 11, 2025 /PRNewswire/ -- Relativity Networks, the leading at-scale provider of next-generation fiber-optic technology, has raised $4.6 million in pre-seed funding to address the growing demand for data centers—and their enormous power requirements. Relativity Networks' technology will help the data industry meet that energy challenge by expanding development beyond urban cores and into locations with more abundant power. By 2026, U.S. data centers will likely consume more than twice their current electricity usage, driven by the AI era's insatiable data-processing needs. Industry forecasts suggest 40% of these facilities could face power shortages by 2027.
Relativity Networks' patent-pending hollow-core fiber (HCF) cable is already being used to expand the number of data centers for cloud-computing hyperscalers. The company's HCF technology helps overcome a major obstacle that is limiting the growth of AI by transmitting data nearly 50% faster than conventional glass fiber.
Hollow-core fiber moves data faster with lower latency—less delay—than conventional fiber. That enables data to travel 1.5 times farther without impacting the latency that can throw intricate multi-location data operations and applications out of sync. While traditional fiber optic cables typically limit data centers to within 60 kilometers (37 miles) of each other due to latency constraints, Relativity Networks' HCF technology extends this range to 90 kilometers (56 miles). This increased geographic flexibility allows organizations to strategically position their data centers closer to existing and emerging power sources.
"Currently, new data centers can't be built fast enough to satisfy the rapidly expanding AI-driven economy and the lack of available power is an existential threat to fueling that growth,'' said Jason Eichenholz, Relativity Networks' Founder and CEO. "By moving data faster with lower latency at nearly the speed of light, we are providing the industry new geographic optionality to address the energy-intensive data needs of today's AI-driven digital economy."
Eichenholz, who has a Ph.D. in optical sciences and engineering, is a trailblazing pioneer in laser and photonics-enabled technologies, holding more than 90 patents in the field. Eichenholz has also led the R&D and commercialization of hundreds of millions of dollars in revolutionary products. He co-founded and took public Luminar, one of the leading providers of the lidar (light detection and ranging) technology that enables autonomous vehicles. Volvo is now among the automakers using Luminar's lidar technology.
Relativity Networks, which Eichenholz founded in 2023 following his time at Luminar, is commercializing patent-pending HCF technology originally developed by co-founder Professor Rodrigo Amezcua at CREOL, the College of Optics and Photonics at the University of Central Florida.
"Hollow core fiber (HCF) represents the next revolution in optical networking, offering unprecedented speeds and lower latency that traditional fiber simply cannot match. This breakthrough demonstrates a decade of dedicated research by our team," said Dr. Winston Schoenfeld, Vice President for Research and Innovation at the University of Central Florida. "The Relativity Networks team has a proven track record in developing and commercializing innovative technology solutions, and we have great confidence that they are the best partner to scale such an operation. UCF strongly values industry partnerships and this is a wonderful example of how collaboration between academia and industry can lead to accelerated innovation that translates into significant societal impact."
Relativity Networks' pre-seed funding was raised by a group of private investors following the initial investment from Eichenholz. The company has already secured multimillion dollar contracts and has deployed its technology in several U.S. field installations, marking an important step in the company's growth trajectory. Relativity Networks' business model is based on bringing in the right partners to scale to high volume production rapidly, ensuring there will be enough supply to support the entire industry.
"We're well positioned to redefine the optical network of the future," Eichenholz said.
For more information, visit www.relativitynetworks.ai.
About Relativity Networks
Relativity Networks is the leading at-scale Hollow Core Fiber provider that has greatly accelerated the speed of light in fiber optics. By replacing glass with air, the company has created technology that allows data to move nearly 50% faster and farther without unacceptable delays, addressing the critical power challenges of today, including the need for higher performing data centers in the age of AI. Hyperscalers rely on Relativity Networks to provide the geographic flexibility to build data centers closer to where power is available while meeting exacting data-transmission latency (time lag) requirements. Relativity Networks' HCF and connectivity solutions integrate seamlessly with existing infrastructure, unlocking immediate expansion options beyond power-constrained urban grids. For more information, visit www.relativitynetworks.ai.
SOURCE Relativity Networks
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