As artificial intelligence systems grow more powerful, the chips used in data centres are producing far more heat. It has increased demand for new cooling technologies that can keep high-performance processors running efficiently without overheating.
San Jose-based Frore Systems, a startup developing liquid cooling solutions for AI chips, has raised $143 million in new funding, valuing the company at $1.64 billion, according to Bloomberg.
The funding round was led by MVP Ventures and included investors such as Fidelity Management & Research, Top Tier, Mayfield Fund, and Qualcomm Ventures.
The company plans to use the capital to expand its manufacturing capacity as demand for cooling systems in AI infrastructure continues to rise.
Develops liquid cooling systems
Founded about eight years ago by Madhavapeddy and Suryaprakash Ganti, Frore initially focused on cooling technology for smartphones and other devices that do not use traditional fans.
However, the rapid growth of AI computing, especially systems powered by NVIDIA’s GPUs, has opened new opportunities for advanced cooling solutions.
The company now develops liquid-cooling systems for data centre hardware. Its main product, called the LiquidJet Nexus tray, circulates liquid through specially designed channels that remove heat from chips more efficiently.
Unlike traditional liquid cooling systems that use flat “cold plates,” Frore designs three-dimensional coolant channels customised for each chip type.
According to the company, this approach improves cooling performance and allows the liquid coolant to cycle through the system multiple times.
The company also uses materials that make the cooling system thinner and lighter, allowing more units to be stacked inside servers. This can help data centres increase computing performance while reducing electricity use, water consumption and cooling equipment costs.
Initially, Frore introduced a cooling component called AirJet, which could be integrated into electronic devices to improve performance without using traditional fans.
The company later shifted toward liquid cooling for data centres after discussions with NVIDIA CEO Jensen Huang, who suggested adapting the technology for AI infrastructure.
The company currently manufactures its products in Taiwan. The company said it plans to expand production and add additional manufacturing locations as it grows.
Its customers include large cloud providers, governments developing national computing networks and companies building AI server hardware, though the firm has not publicly disclosed specific clients.
