AI infrastructure startup Majestic Labs announced earlier this month that it had raised $100 million in funding from Bow Wow Wave Capital, which led the Series A round, and Lux Capital.
Founded by former Google and Meta (NASDAQ:META) executives Ofer Shacham and Masumi Reynders, Majestic Labs is developing servers with 1,000 times the memory of a standard server. The co-founders told CNBC that the company develops its entire system, both hardware and software, and that when complete, each server could replace up to 10 racks.
"Majestic is built on a simple and powerful insight: AI’s next leap forward will come from access to more powerful AI infrastructure, and more powerful AI infrastructure requires a reimagination of the memory system," Shacham said in Majestic Labs' funding announcement.
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"Majestic allows for a level of scalability and operational efficiency that simply isn’t possible with traditional GPU-based systems," Rabii said. "Our systems support vastly more users per server and shorten training time, lifting AI workloads to new heights both on-premises and in the cloud. Our customers benefit from tremendous improvements in performance, power consumption, and total cost of ownership."
A deep well of knowledge
Shacham, Rabii, and Reynders have been quietly working on Majestic's servers since 2023. The trio told CNBC that they met while working at Google, before all leaving for Meta in 2018.
They came up with the idea for Majestic Labs after brainstorming about the biggest roadblocks for AI.
"We've been friends and colleagues for a long time, so this notion of working together and doing something exciting has always been in the periphery," Reynders told CNBC.
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As they look towards the future, the co-founders told CNBC that they plan to tap into their network to build out their team. The 1,500 colleagues they've worked with at companies like Meta and Google are top-of-mind.
"There's that trust they already have with us," Rabii said.
The future of Majestic Labs
In addition to building out their team, the co-founders said in their company statement that they plan to use the money they've raised to further develop their software stack and launch a pilot program. They told CNBC they expect prototypes of their servers to be with customers as early as 2027.
The announcement comes as a number of major tech companies have lifted their guidance for capital expenditures and announced that collective costs will reach $380 billion this year. Experts expect expenditures to balloon even more in 2026.
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"AI infrastructure is scaling at unprecedented speed, but the industry has not solved key fundamental architectural inefficiencies," Reynders said in the company's statement. "Majestic addresses this by delivering immediate operational gains on today’s workloads while maintaining full programmability and flexibility to adapt as AI evolves beyond transformer-based models."
"Majestic has engineered a new system for AI from the ground up, encompassing silicon, IO, packaging, and software, that is specifically tailored for the most advanced AI workloads," Lux Capital Partner Shahin Farshchi said in Majestic Labs' announcement. "The team is making the most powerful AI accessible at an unprecedented scale, providing an opportunity to truly reshape how AI is delivered globally."
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