The quiet infrastructure shift powering the next generation of data centers
Updated
January 30, 2026 11:42 AM
Peripheral Component Interconnect Express (PCIe) port on a motherboard, coloured yellow. PHOTO: UNSPLASH
Modern data centers operate on a simple yet fundamental principle: computers require the ability to share data extremely quickly. As AI and cloud systems grow, servers are no longer confined to a single rack. They are spread across many racks, sometimes across entire rooms. When that happens, moving data quickly and cleanly becomes harder.
Montage Technology, a Shanghai-based semiconductor company, builds the chips and connection systems that help servers exchange data without delays. This week, the company announced a new Active Electrical Cable (AEC) solution based on PCIe 6.x and CXL 3.x — two important standards used to connect CPUs, GPUs, network cards and storage inside modern data centers.
In simple terms, Montage’s new AEC product helps different parts of a data center “talk” to each other faster and more reliably, even when those parts are physically far apart.
As data centers grow to support AI and cloud workloads, their architecture is changing. Instead of everything sitting inside one rack, systems now stretch across multiple racks and even multiple rows. This creates a new problem: the longer the distance between machines, the harder it is to keep data signals clean and fast.
This is where Active Electrical Cables come in. Unlike regular copper cables, AECs include small electronic components inside the cable itself. These components strengthen and clean up the data signal as it travels, so information can move farther without getting distorted or delayed.
Montage’s solution uses its own retimer chip based on PCIe 6.x and CXL 3.x. A “retimer” refreshes the data signal so it arrives accurately at the other end. This allows servers, GPUs, storage devices and network cards to stay tightly connected even across longer distances inside large data centers.
The company also uses high-density cable designs and built-in monitoring tools so operators can track performance and fix issues faster. That makes large data centers easier to deploy and maintain.
According to Montage, the solution has already passed interoperability tests with CPUs, xPUs, PCIe switches and network cards. It has also been jointly developed with cable manufacturers in China and validated at the system level.
What makes this development important is not just speed. It is about scale. AI models, cloud services and real-time applications demand massive amounts of data to move continuously between machines. If that movement slows down, everything else slows with it.
By improving how machines connect across racks, Montage’s AEC solution supports the kind of infrastructure that next-generation AI and cloud systems depend on.
Looking ahead, the company plans to expand its high-speed interconnect products further, including work on PCIe 7.0 and Ethernet retimer technologies.
Quietly, in the background of every AI system and cloud service, there is a network of cables and chips doing the hard work of moving data. Montage’s latest launch focuses on making that hidden layer faster, cleaner and ready for the scale that modern computing now demands.
Keep Reading
Why investors are backing Applied Brain Research’s on-device voice AI approach.
Updated
January 28, 2026 5:53 PM
Plastic model of a human's brain. PHOTO: UNSPLASH
Applied Brain Research (ABR), a Canada-based startup, has closed its seed funding round to advance its work in “on-device voice AI”. The round was led by Two Small Fish Ventures, with its general partner Eva Lau joining ABR’s board, reflecting investor confidence in the company’s technical direction and market focus.
The round was oversubscribed, meaning more investors wanted to participate than the company had planned for. That response reflects growing interest in technologies that reduce reliance on cloud-based AI systems.
ABR is focused on a clear problem in voice-enabled products today. Most voice features depend on cloud servers to process speech, which can cause delays, increase costs, raise privacy concerns and limit performance on devices with small batteries or limited computing power.
ABR’s approach is built around keeping voice AI fully on-device. Instead of relying on cloud connectivity, its technology allows devices to process speech locally, enabling faster responses and more predictable performance while reducing data exposure.
Central to this approach is the company’s TSP1 chip, a processor designed specifically for handling time-based data such as speech. Built for real-time voice processing at the edge, TSP1 allows tasks like speech recognition and text-to-speech to run on smaller, power-constrained devices.
This specialization is particularly relevant as voice interfaces become more common across emerging products. Many edge devices such as wearables or mobile robotics cannot support traditional voice AI systems without compromising battery life or responsiveness. The TSP1 addresses this limitation by enabling these capabilities at significantly lower power levels than conventional alternatives. According to the company, full speech-to-text and text-to-speech can run at under 30 milliwatts of power, which is roughly 10 to 100 times lower than many existing alternatives. This level of efficiency makes advanced voice interaction feasible on devices where power consumption has long been a limiting factor.
That efficiency makes the technology applicable across a wide range of use cases. In augmented reality glasses, it supports responsive, hands-free voice control. In robotics, it enables real-time voice interaction without cloud latency or ongoing service costs. For wearables, it expands voice functionality without severely impacting battery life. In medical devices, it allows on-device inference while keeping sensitive data local. And in automotive systems, it enables consistent voice experiences regardless of network availability.
For investors, this combination of timing and technology is what stands out. Voice interfaces are becoming more common, while reliance on cloud infrastructure is increasingly seen as a limitation rather than a strength. ABR sits at the intersection of those two shifts.
With fresh funding in place, ABR is now working with partners across AR, robotics, healthcare, automotive and wearables to bring that future closer. For startup watchers, it’s a reminder that some of the most meaningful AI advances aren’t about bigger models but about making intelligence fit where it actually needs to live.