As AI data centers hit power limits, Peak XV backs Indian startup C2i to fix the bottleneck

2026-02-16 · Source: AI News & Artificial Intelligence | TechCrunch · Field: Technology & Digital — Artificial Intelligence & Machine Learning, Cloud Computing & IT Infrastructure, Entrepreneurship & Start-ups · Depth: Intermediate, short

Summary

Indian startup C2i Semiconductors has secured $15 million in Series A funding, led by Peak XV Partners, bringing its total funding to $19 million. The company, founded in 2024 by former Texas Instruments executives, aims to address the escalating power consumption bottleneck in AI data centers. C2i is developing plug-and-play, system-level power solutions designed to reduce energy losses, which currently account for 15% to 20% of power in data centers due to voltage conversion. Their integrated "grid-to-GPU" system is projected to cut end-to-end losses by approximately 10%, translating to significant savings in cooling costs and improved GPU utilization. This investment highlights the growing recognition that power, not just compute, is becoming the primary limiting factor for scaling AI infrastructure, with data center energy demand projected to nearly triple by 2035.

Key takeaway

For CTOs and VPs of Engineering building out AI infrastructure, the escalating power demands and associated energy waste represent a critical bottleneck. Your teams should investigate integrated power delivery solutions like C2i's to significantly reduce operational costs and improve GPU utilization, as even incremental efficiency gains can yield tens of billions in savings. Prioritize power efficiency alongside compute capacity in your next-generation data center designs.

Key insights

Efficient power delivery is critical for scaling AI data centers and reducing operational costs.

Principles

• Integrated power delivery reduces energy loss.
• Energy costs dominate data center TCO.
• High-voltage power conversion is inefficient.

Method

C2i redesigns power delivery as a single, plug-and-play "grid-to-GPU" system, integrating conversion, control, and packaging to cut end-to-end energy losses by ~10%.

In practice

• Evaluate integrated power solutions for data centers.
• Prioritize energy efficiency in AI infrastructure planning.

Topics

• AI Data Centers
• Energy Efficiency
• Power Delivery Solutions
• Semiconductor Design
• Peak XV Partners

Best for: CTO, VP of Engineering/Data, Director of AI/ML, Investor, Entrepreneur, AI Operations Specialist

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Editorial summary, takeaway, and curation by AIssential. Original article published by AI News & Artificial Intelligence | TechCrunch.