Celestial AI Raises $250M to Revolutionize AI Chip Connectivity

Hey geeks! Today’s tech landscape is buzzing with innovation and challenges. Here's a brief summary of everything that happened in tech:

• Celestial AI raises $250M to revolutionize AI chip connectivity

• Meta tests its first in-house AI training chip

• ASUS IoT unveils groundbreaking edge computing solutions.

• Microsoft warns of a cybersecurity crisis in rural hospitals

• India’s startup ecosystem sees major funding and collaborations.

Let’s dive in.

1. Celestial AI Raises $250M to Speed Up AI Chip Connectivity

Celestial AI, a Silicon Valley startup, has secured $250 million in funding, bringing its total to $515 million. The company is leveraging photonics technology to tackle one of AI’s biggest bottlenecks: memory bandwidth between chips. By using light instead of electricity to transfer data, Celestial AI promises faster, more energy-efficient chip connectivity, directly challenging Nvidia’s dominance in the space.

Why it matters: As AI models grow larger and more complex, the need for efficient chip communication becomes critical. Celestial AI’s photonics-based approach could redefine how AI hardware is designed, making it a key player to watch.

2. Meta Tests Its First In-House AI Training Chip

Meta has begun testing its first custom AI training chip, a move aimed at reducing its reliance on external suppliers like Nvidia. This development comes as AI scalability faces growing scrutiny, particularly after Chinese startup DeepSeek introduced cost-effective models prioritizing inference over traditional training methods.

Why it matters: Custom chips could give Meta greater control over its AI infrastructure, potentially lowering costs and improving efficiency. This shift also highlights the broader trend of tech giants designing their own hardware to stay competitive.

(And no, this isn't the same chip used in Zuck's hardware)

3. ASUS IoT Unveils Cutting-Edge AI and Edge Computing Solutions

(They're doing what to the computers now!??)

At Embedded World 2025, ASUS IoT showcased its latest innovations, including the RUC-1000G, the world’s first 19-inch 2U edge AI computer. Supporting a 600W GPU and PCIe® 5.0, this powerhouse is designed for mission-critical industrial applications, offering advanced thermal management, enhanced security, and real-time AI inference capabilities.

Why it matters: As industries increasingly adopt AI at the edge, solutions like the RUC-1000G are critical for enabling real-time decision-making in sectors like manufacturing, healthcare, and logistics.

4. Microsoft Warns of Cybersecurity Crisis in Rural Hospitals

Microsoft’s latest white paper highlights the growing threat of ransomware and phishing attacks targeting rural hospitals. These facilities, often underfunded and lacking robust IT infrastructure, are prime targets for threat groups like Vanilla Tempest and Lemon Sandstorm. The report calls for enhanced cybersecurity measures and government intervention to protect vulnerable healthcare systems.

Me getting a virus after hacking a hospital (It wasn't the computer one 🤒)

Why it matters: Cyberattacks on hospitals can have life-or-death consequences, disrupting patient care and eroding trust in healthcare systems. This crisis underscores the urgent need for investment in cybersecurity, especially in underserved areas.

5. Indian Startup Ecosystem Sees Major Funding and Collaborations

• Uber has partnered with Refex Green Mobility to deploy 1,000 electric vehicles across key Indian cities by 2026, accelerating the country’s transition to sustainable transportation.

  

• Kuhoo Finance, an education fintech startup, received an NBFC license from the RBI, enabling it to offer loans up to Rs 2 crore to students and professionals.

• Felicity Games, a mobile game publisher, raised $3 million in seed funding to expand its publishing infrastructure and partnerships with Indian game studios.

Why it matters: India’s startup ecosystem continues to thrive, with innovations in green mobility, fintech, and gaming. These developments highlight the country’s growing influence as a global tech hub.

Bottom Line

Today’s news underscores the rapid pace of innovation in AI, cybersecurity, and the startup world. From Celestial AI’s photonics breakthrough to Microsoft’s urgent call for healthcare cybersecurity, these stories reflect both the opportunities and challenges shaping the tech landscape.