AI network startup Eridu emerges from stealth with hefty $200M Series A

Drew Perkins, a veteran in computer networking technology and startup creation, is making headlines as the co-founder and CEO of Eridu, an AI networking startup that has officially emerged from stealth mode. The company has successfully raised an impressive $200 million in its Series A funding round, which was oversubscribed and led by notable investors such as Socratic Partners, John Doerr, and Matter Venture Partners. With this latest funding, Eridu has accumulated a total of $230 million. Perkins’ journey in technology began in the 1980s, where he played a pivotal role in developing the Point-to-Point Protocol (PPP), integral to TCP/IP—the foundational protocol for the internet. His entrepreneurial spirit led to the creation of Lightera Networks, which was sold to Ciena for over $500 million in 1999. He then co-founded Infinera, which went public and was later acquired by Nokia for $2.3 billion in 2025. His track record includes founding Gainspeed, also sold to Nokia, and the AR startup Mojo Vision. Inspired by a conversation with OpenAI’s CEO Sam Altman following the release of ChatGPT, Perkins recognized a significant challenge in AI development. In February 2023, during a conference, Altman highlighted that the backbone of AI and ChatGPT relies on vast computational resources—initially referencing 4,000 GPUs, but now encompassing millions. This insight led Perkins to conclude that the biggest hurdle ahead would not just be the availability of chips but also how they communicate within systems. To address this challenge, Perkins and his co-founder, Omar Hassen—who has extensive experience in networking chip design—set out to revolutionize computer networking. Founded in 2024, Eridu aims to redesign networking from the ground up, starting with silicon-based chips that are tailored for AI applications. These new chips will enhance networking capabilities and replace traditional optical connections with on-chip communications, resulting in reduced latency and increased efficiency in data processing. Perkins envisions Eridu's systems filling the role of conventional network equipment providers in AI data centers. By minimizing the number of required external connections, they hope to streamline the data transfer process, ultimately saving power and costs while enhancing reliability. In Perkins’ view, current data center switches are lagging behind the rapid advancements in GPU computing and memory bandwidth. The funding journey was intense, with Perkins reconnecting with previous venture capital contacts and securing Wen Hsieh, a prominent figure in venture investment, as a key backer. Hsieh’s endorsement led to a surge of interest from other investors, including Hudson River Trading and Capricorn Investment Group, as well as participation from various global firms. While Perkins remains tight-lipped about the startup's valuation, he assures that it aligns well with industry standards for Series A rounds. He is committed to ensuring that his team of around 100 employees benefits from the company's success, particularly through stock options. If Eridu can fulfill its ambitious plans for AI-centric networking technology, it stands to play a crucial role in the most significant data center expansion to date, backed by a team with unparalleled experience in Silicon Valley.