Secretive chipmaker Smooth Stone came out of stealth today with an announcement of $48 million in funding and a vow to virtually eliminate server power use in data centers.
The sheer size of the Austin company’s first venture round provides a useful validation of its business plan. The funding drew investors Battery Ventures, Highland Capital Partners, Flybridge Capital Partners, Texas Instruments, the Advanced Technology Investment Company and ARM, which had already provided money to the company and has a seat on its board. (Smooth Stone had previously raised $3 million of seed capital.)
The company is among a new wave of start-ups aiming to cut data center power use – specifically server energy consumption.
CEO Barry Evans declined to provide details about its development and delivery of an ARM-based chip. But he said the goal is to deliver a “disruptive” technology that will eliminate “almost all” of the power demands of a data-center server. ARM chips are generally used in low-power devices, such as cell phones and handhelds.
“We want to take power out of the equation” for data center managers, he said in an interview. “The problem is becoming so acute” – along with data-center rack space.
Other companies addressing the market include SeaMicro, which promises one-quarter the power and one-quarter the space of a typical Intel-based Xeon server. The company’s SM1000 server uses 512 Atom chips, another Intel chip made for netbooks and other low-power devices.
A third company apparently making high-efficiency processors for servers is Angilux, which Google bought earlier this month.
Smooth Stone’s business model appears to be focused on chip making, leaving the development of servers to partners and customers. The company isn’t offering much detail on its plans other than to say closing the $48 million round required it to have all the important pieces lined up, from technology to market validation.
Smooth Stone has been engaged with the market for some time, says Evans.
He adds that the money will allow it to complete its chip development and double the size of its development team over two to three months. That could hasten its move into the market.
Posted by Mark Boslet 

