AI-powered Funding News

AI Server Startup Majestic Labs Comes Out of Stealth With $100 Mn Funding

• ByStartupStory     |    November 11, 2025

Majestic Labs, an AI server startup founded by former Google and Meta executives, has come out of stealth mode with a significant funding milestone, having raised $100 million in total. This includes a $10 million seed round in 2024 and a $90 million Series A round led by Bow Wave Capital, with participation from investors such as Lux Capital, SBI, Upfront, Grove Ventures, Hetz Ventures, QP Ventures, Aidenlair Global, and TAL Ventures.

The company is tackling a known bottleneck in AI infrastructure known as the “memory wall,” where the limited memory capacity of current GPU systems restricts AI workloads. Majestic Labs’ breakthrough is an all-in-one server architecture that combines immense memory capacity—claimed to be 1000 times that of a typical enterprise-grade GPU system—with state-of-the-art compute power. This innovation allows one Majestic server to replace up to ten racks of standard servers, delivering significant performance improvements and efficiency gains.

Co-Founder and CEO Ofer Shacham described the innovation as “packing the memory capacity and bandwidth of 10 racks of today’s most advanced servers into a single server.” This consolidation enables over 50 times better computing performance, drastically lower power consumption, smaller data center footprints, and considerable cost savings.

Majestic Labs’ product addresses critical challenges faced by AI model developers, especially those working on large language models with extreme memory demands. By reimagining the memory system integral to AI infrastructure, Majestic promises to unlock new levels of scalability, speed, and affordability for training and deploying complex AI applications.

The startup currently operates between Los Altos, California, and Tel Aviv, Israel, with fewer than 50 employees and plans to scale rapidly. Prototypes of its server technology are expected to reach select customers by 2027, with pre-order discussions already underway.

This strategic entry into the AI hardware ecosystem positions Majestic Labs as a potential challenger to established GPU manufacturers like Nvidia by focusing on the critical yet underserved memory side of AI computing. With $100 million in fresh capital, the company is well-equipped to drive innovation in AI infrastructure to meet growing global demand for more powerful and efficient AI systems.

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