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

The article highlights a significant shift in AI data center scaling challenges, where power efficiency, rather than raw compute capacity, is becoming the primary bottleneck. Peak XV Partners has invested $15 million in a Series A round for C2i Semiconductors, an Indian startup developing integrated, plug-and-play power solutions aimed at reducing energy losses in AI infrastructure. C2i’s technology focuses on redesigning power delivery from the data center grid directly to GPUs, addressing inefficiencies in power conversion that currently waste 15-20% of energy. By integrating power conversion, control, and packaging into a unified platform, C2i aims to cut end-to-end energy losses by about 10%, which translates to substantial savings in power consumption, cooling costs, and overall operational expenses. Founded in 2024 by former Texas Instruments executives, C2i is preparing to validate its first silicon designs with major data center operators and hyperscalers by mid-2026. The startup has grown to a team of