Meter raises $170M to boost networking infrastructure for AI demand

Investment reflects growing focus on networking for AI scalability

As artificial intelligence continues to reshape the digital economy, underlying infrastructure has become a strategic priority—not just advanced chips or machine learning models, but the physical and software layers enabling data flow. One of the latest moves in this direction is from Meter, a networking start-up based in San Francisco, which has raised $170 million in a new funding round backed by General Catalyst, Microsoft, and Sequoia Capital.

Hemant Taneja, CEO of General Catalyst, explained that network infrastructure has long been an underappreciated piece of the broader tech ecosystem. He noted that the exponential growth of AI applications is putting enormous pressure on existing networking systems, which are increasingly seen as barriers to expanding computing capacity.

Legacy players evolve, while start-ups propose new models

While dominant firms like Cisco and Arista Networks continue to upgrade their equipment to handle rising AI-driven traffic—Cisco recently introduced a new generation of switches—emerging companies like Meter are exploring alternative models. Rather than selling standalone hardware, Meter offers bundled, subscription-based solutions that combine networking devices with software integration and ongoing support.

Cisco currently holds a market capitalization of around $254 billion, while Arista Networks is valued at $118 billion. Despite these figures, investors are increasingly showing interest in nimble start-ups that promise flexible, scalable alternatives to traditional infrastructure.

Prominent tech leaders among Meter’s early supporters

Meter’s ability to attract high-profile backers has also contributed to its momentum. Notable early investors include Sam Altman, CEO of OpenAI; Reid Hoffman, co-founder of LinkedIn; and Diane Greene, former CEO of Google Cloud. Their involvement signals broader confidence in the company's vision to rethink how businesses deploy and manage networking systems.

The company’s offerings are particularly aligned with the needs of data-intensive sectors. By providing plug-and-play networking packages that can be rapidly deployed across corporate environments, Meter positions itself as a service provider rather than a conventional hardware vendor.

Strategic use of funds and future direction

With this fresh capital, Meter plans to scale its operations, grow its client base—particularly among data centers and AI-focused enterprises—and further develop its technology stack. The company’s model aims to make network infrastructure more accessible by turning it into a managed service, similar to the cloud computing model adopted by leading platforms.

As AI workloads increase and the demand for bandwidth and reliability continues to grow, investments in smart networking solutions are expected to follow. Meter’s approach reflects a shift toward infrastructure that is not only performant but also adaptive to the evolving landscape of enterprise technology.