Three former Meta and Google silicon executives on Monday announced they’ve raised a total of $100 million to build technology they say will reduce cloud companies’ spend on data center buildouts.

Called Majestic Labs, the startup’s co-founders are Ofer Shacham, Sha Rabii and Masumi Reynders, all of whom spent years working together leading silicon products at Meta and Google. Majestic’s patent-pending silicon design architecture includes 1,000 times the memory of a typical enterprise-grade server, the co-founders told CNBC.

Majestic develops its entire chip system, much like Nvidia, but each of the startup’s servers may replace up to 10 of today’s leading racks, they said.

The company closed its $71 million Series A funding round in September, led by Bow Wave Capital. Among its others investors is Lux Capital. Prior to Monday’s announcement, the co-founders had been quietly working on the startup since late 2023.

Majestic’s funding announcement comes as major tech companies raise their capital expenditures, primarily for data center infrastructure. Alphabet, Meta, Microsoft and Amazon each lifted their guidance for capital expenditures in October, and they collectively expect that number to reach more than $380 billion this year.

While the majority of large language models and AI workloads have relied on Nvidia’s graphics processing units, or GPUs, more companies are entering the fold. Google last week announced Ironwood, its latest tensor processing unit, or TPUs, which artificial intelligence startup Anthropic plans to use for its Claude model.

However, memory capacity remains a challenge for companies that have large amounts of data to process, which the Majestic co-founders said they hope to address.

“Nvidia makes excellent GPUs and has driven incredible AI innovation,” Shacham, Majestic’s CEO, told CNBC. “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”

Majestic is going after hyperscalers and large companies that run AI models, including those from the financial and pharmaceutical industries, the co-founders said.

The technology underpinning the company includes patent-pending architectures that allow Majestic to collapse multiple racks worth of conventional equipment and memory into a single server. Majestic claims that will allow for a smaller footprint and requires less power and cooling, helping the company’s clients reduce their data center costs.

Prototypes of Majestic’s box servers will be available for some customers in 2027, and the startup has already begun discussing pre-orders, the co-founders said. Majestic declined to share its clients.

The company has fewer than 50 employees — half of which are based in Tel Aviv, Israel, while the rest are based in Los Altos, California. Majestic said it plans to grow each location and seek additional funding in the coming year. 

When Meta laid off employees from Reality Labs in 2023, Shacham had to conduct the cuts, he said. At that point, Meta was trying to conserve cash, he said.

“Part of that was layoffs across the organization, and FAST was not excluded from that,” Shacham said. “It’s not a good place to be, not a good feeling to do.”

The three founded Majestic Labs after brainstorming about the biggest bottleneck problems for silicon and 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 said.

As Majestic eyes growth and hiring in 2026, the co-founders said they’re tapping into their collective of rolodex of the more than 1,500 employees they’ve worked with at prior companies, including Meta and Google.

“There’s that trust they already have with us,” Rabii said of the former colleagues.

WATCH: Google opens access to its most powerful AI chip

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All eyes were on Capitol Hill last night when the Senate approved the first step of a deal that could end the federal government shutdown. Effects of the 41-day closure escalated in the last week, as the FAA ordered airlines to cancel some flights and as the Trump administration refused to fund food stamps.

Here’s the latest:

• A group of eight Democratic Senators broke with party leadership to vote yes on the agreement that would fund the government through January. The procedural measure passed with a vote count of 60-40.
• The package doesn’t include an extension for enhanced Affordable Care Act tax credits, which Democrats made a lightning-rod issue during the shutdown. However, it contains a guarantee by Republicans for a vote on the matter next month.
• The measure’s passage sets up more votes on the agreement starting today. The House of Representatives and President Donald Trump will also need to sign off on the deal to officially end the shutdown, which is now the longest in American history.
• Transportation Secretary Sean Duffy warned earlier Sunday that U.S. air travel would be slowed to “a trickle” ahead of Thanksgiving after the Trump administration ordered the cancellation of hundreds of flights amid the shutdown.
• The Department of Agriculture, meanwhile, told states not to issue full SNAP benefits for this month and said it would slap penalties on any that didn’t “undo” full payments already made.
• The Supreme Court on Friday temporarily paused a federal judge’s order directing the Trump administration to fully fund food stamps for November.

Stocks are coming off a rough week, with the Nasdaq Composite recording its biggest weekly loss since April. Several well-known tech names including Oracle, Advanced Micro Devices and Broadcom weighed down the broader market, raising alarm about the health of the artificial intelligence trade.

But stock futures are higher this morning after the Senate’s vote gave traders hope that the end of the shutdown is in sight. It’s a light week for economic data and corporate earnings, which CNBC’s Sarah Min notes could allow space for some digestion of recent market action.

Follow live markets updates here.

Startup data provider PitchBook announced this morning that it’s launching a new artificial intelligence tool called PitchBook Navigator.

Beginning later this month, subscribers will be able to get insights on market deals and trends by asking the AI assistant questions. PitchBook is also integrating its product with ChatGPT.

As CNBC’s Jaures Yip points out, the new AI-powered tool comes amid a boom of interest in private market deals as the valuations of buzzy startups balloon.

Cleveland Guardians pitchers Emmanuel Clase and Luis Ortiz were indicted for their alleged roles in a sports betting scheme, federal prosecutors said yesterday. Authorities said the pair took bribes to rig bets on pitches thrown during MLB games.

The duo could face up to 20 years in prison if they are found guilty of the highest-offense charges. The MLB placed both players on leave in July as the league conducted an investigation.

It’s the latest betting scandal to rock major league sports after the federal government said in an indictment last month that confidential information about NBA players was leaked to bettors.

Professional network Long Angle found that about 1 in 5 millionaires are planning to axe their wealth advisors, and that only a third use one for financial planning. On the other hand, millionaires reported high satisfaction levels with their personal trainers and therapists, as well as with private schools for their kids.

Click here to read which services this group is most and least satisfied with.

The private tech market has never been hotter, with companies like OpenAI, SpaceX, Anthropic and Stripe climbing to astronomical valuations.

PitchBook, one of the top providers of data on startups, wants to make it easier for users to quickly access information on those companies and many others. On Monday, Pitchbook introduced an artificial intelligence-powered tool that provides market insights based on user prompts.

Rather than having to find a company’s profile page and search for specific information, subscribers will be able to ask questions to the AI assistant, dubbed PitchBook Navigator, and get facts and figures on deals and market trends. The company is also integrating with OpenAI, allowing paid users to access information directly through ChatGPT.

The insights are generated using PitchBook’s data and a combination of AI and human expertise. Navigator will become available to subscribers in late November.

“AI is transforming every corner of business, and after nearly two decades building the foundation of reliable, comprehensive data, PitchBook is uniquely positioned to lead this new era of private market intelligence,” said Thomas Van Buskirk, the company’s executive vice president of technology and engineering, in a press release.

PitchBook is rolling out the AI enhancement at a time when investors are clamoring for access to private market deals and data. OpenAI reached a $500 billion valuation in October to become the world’s most valuable private company, topping SpaceX’s reported $400 billion valuation from a secondary sale. Anthropic announced a funding round in September at a $183 billion valuation.

Traditional financial firms are aggressively buying their way into the private market. Charles Schwab agreed last week to acquire Forge Global, a marketplace for pre-IPO shares, for $660 million. In October, Goldman Sachs bought out $7 billion venture capital firm Industry Ventures, while Morgan Stanley announced that it would acquire private shares platform EquityZen.

For PitchBook, ChatGPT marks the latest addition to its large language model integrations. In late October, the company teamed up with Anthropic to make its private market data available directly within Claude for subscribers.

WATCH: Charles Schwab CEO on $660 million Forge acquisition