Three former Google and Meta silicon executives have raised $100 million to launch Majestic Labs, a startup developing high-capacity AI servers designed to cut data centre costs for hyperscalers.
Founded by Ofer Shacham, Sha Rabii, and Masumi Reynders, Majestic Labs is building patent-pending silicon architecture that promises up to 1,000 times the memory capacity of conventional enterprise servers. The company says its system can replace up to ten existing server racks, potentially reducing power, cooling, and space requirements for large AI data centers.
Majestic’s $71 million Series A, led by Bow Wave Capital with participation from Lux Capital, closed in September. The company has been quietly operating since late 2023 and now employs fewer than 50 people split between Los Altos, California, and Tel Aviv, Israel. Prototypes are expected in 2027, with pre-orders already under discussion.
“We’re not trying to replace GPUs across the board — we’re solving for memory-intensive AI workloads where the fixed compute-to-memory ratio becomes a constraint,” Shacham, Majestic’s CEO, told CNBC. The startup is targeting hyperscalers and enterprises in data-heavy industries such as finance and pharmaceuticals.
The timing aligns with surging global investment in data centre infrastructure. Tech giants Alphabet, Meta, Microsoft, and Amazon together expect capital expenditures to exceed $380 billion in 2025, much of it driven by AI workloads.
Majestic’s architecture aims to “collapse” multiple racks of hardware into a single server, which the founders say could dramatically increase efficiency. “NVIDIA makes excellent GPUs and has driven incredible AI innovation,” Shacham added, “but our goal is to complement that by solving for memory bottlenecks.”
The trio’s collaboration dates back two decades. Reynders joined Google in 2003 and later became director of product management for silicon. Rabii, who sold his chip design startup Arda Technologies to Google in 201, led the Argos video chip team at YouTube. Shacham, who sold Chip Genesis to Google in 2013, oversaw silicon design for consumer hardware.
In 2018, the three moved to Meta, where they founded the Facebook Agile Silicon Team (FAST). After layoffs at Reality Labs in 2023, they regrouped to start Majestic Labs, focusing on one of AI’s biggest infrastructure bottlenecks — memory.
“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 said.
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