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DG Matrix raises $60M to make data center power smarter

Data centers face a conundrum: how to power increasingly dense server racks using equipment that relies on century-old technology. 

Traditional transformers are bulky and hot, but a new generation of solid-state transformers promises to address both problems while making power management more flexible.

One solid-state transformer startup, DG Matrix, has raised $60 million in a Series A round, TechCrunch has exclusively learned. Engine Ventures led the round with ABB, Cerberus Ventures, Chevron Technology Ventures, Clean Energy Ventures, Fine Structure Ventures, Helios Climate Ventures, MCJ, and Piedmont Capital participating.

The company also recently announced a deal to provide its Interport device to Exowatt, the startup building solar-plus-storage containers to supply data centers with 24/7 electricity.

The Interport device acts as a router for power, Subhashish Bhattacharya, co-founder and CTO of DG Matrix, told TechCrunch. One Interport can handle up to 2.4 megawatts of connections. For example, it could accumulate 600 kilowatts from solar panels and 600 kilowatts from grid-scale batteries to feed power to 12 racks drawing 100 kilowatts each.

Because Interport can integrate electricity from a variety of sources, including large batteries, DG Matrix says it can eliminate uninterruptible power supplies (UPS) and the equipment needed to support them. 

Altogether, one Interport can cut down the amount of space devoted to power conversion in a data center. Two 4-by-30-foot skids laden with power conversion equipment can be replaced by a single four-by-four-foot Interport device, DG Matrix co-founder and CEO Haroon Inam told TechCrunch. 

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By eliminating several devices, the company can boost the system’s overall efficiency. All the legacy devices chained together can achieve about 82% to 90% efficiency, Inam said, while Interport is 95% to 98% efficient. He said that reliability should improve, too. “When you are using only 10%, 15% of the components that legacy is using, you’re going to be far more reliable,” he added.

DG Matrix is in the process of rolling out initial units to customers in June. Its next product will be a sidecar to supply data center racks with power that builds on the technology the company has already developed.

Currently, data centers represent about 90% of DG Matrix’s pipeline, with the remainder devoted to EV charging for fleets. Inam said the next step is to expand into building power and add more capacity to build micro- and mini-grids to support electrification projects in remote communities. There, Interports would orchestrate power from solar, wind, and batteries to provide round-the-clock electricity without a grid connection.

“Nobody’s going to build a $100 million transmission line to a village,” Inam said. “Now you can spend a fraction of that money and help eliminate energy poverty.”

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Tesla dodges 30-day suspension in California after removing ‘Autopilot’

The California Department of Motor Vehicles will not suspend Tesla’s sales and manufacturing licenses for 30 days because the EV maker has stopped using the term “Autopilot” in the marketing of its vehicles in the state.

The decision, issued late Tuesday, means Tesla can continue selling its EVs in California without interruption and officially settles a case that has been dragging on for nearly three years. California is Tesla’s biggest U.S. market.

In November 2023, the DMV filed accusations that Tesla violated state law by using deceptive marketing of Autopilot, its basic advanced driver-assistance system, as well as its more capable Full Self-Driving driver-assistance software. The state regulator argued that the terms misled customers and distorted the capabilities of the advanced driver-assistance systems.

Tesla stopped using the term “Full Self-Driving Capability” and instead used Full Self-Driving (Supervised) to more accurately describe the system and clarify that drivers were still required to monitor it. But Tesla held on to the Autopilot term, prompting the DMV to refer the case to an administrative law judge at the California Office of Administrative Hearings.

In December, the administrative law judge agreed with the DMV’s request to suspend Tesla’s sales and manufacturing licenses in the state for 30 days as a penalty for its actions. The DMV agreed with the ruling but didn’t pounce; instead, the state regulator gave Tesla 60 days to comply.

“Since then, Tesla took corrective action and has stopped using the misleading term ‘Autopilot’ in the marketing of its electric vehicles in California,” the DMV stated in a release posted on its website. “Tesla had previously modified its use of the term ‘Full Self-Driving’ to clarify that driver supervision is required. By taking this prescribed action, Tesla will avoid having its dealer and manufacturer licenses suspended in the state for 30 days by the DMV.”

Tesla didn’t just stop using the term Autopilot, though. In January, the company discontinued Autopilot in the U.S. and Canada altogether. The move not only helped it comply with the DMV but was also viewed as a way to boost adoption of FSD, which, unlike Autopilot, requires the owner to pay for the upgraded system.

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FSD Supervised, which until February 14 required an $8,000 one-time fee, is now only available through a monthly subscription of $99. That subscription fee is expected to increase as the system becomes more capable, Tesla CEO Elon Musk has said.

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U.S. court bars OpenAI from using ‘Cameo’

A federal district court in Northern California ruled in favor of Cameo, a platform that allows users to get personalized video messages from celebrities and ordered OpenAI to stop using “Cameo” in its products and features.

OpenAI was using the “Cameo” name for its AI-powered video-generation app Sora 2. Users could use that feature to insert digital likenesses of themselves into AI-generated videos. In a ruling filed Saturday, the court said the name was similar enough to cause user confusion and rejected OpenAI’s argument that “Cameo” was merely descriptive, finding that “it suggests rather than describes the feature.”

In November, the court granted a temporary restraining order to Cameo and stopped OpenAI from using the word. The AI company then renamed the feature to “Characters” after that order.

“We have spent nearly a decade building a brand that stands for talent-friendly interactions and genuine connection, and we like to say that ‘every Cameo is a commercial for the next one,” Cameo CEO Steven Galanis said in a statement.

“This ruling is a critical victory not just for our company, but for the integrity of our marketplace and the thousands of creators who trust the Cameo name. We will continue to vigorously defend our intellectual property against any platform that attempts to trade on the goodwill and recognition we have worked so hard to establish,” he noted.

“We disagree with the complaint’s assertion that anyone can claim exclusive ownership over the word ‘cameo,’ and we look forward to continuing to make our case,” an OpenAI spokesperson told Reuters in response to the ruling.

OpenAI has been involved in several intellectual property cases in recent months. Earlier this month, the company ditched “IO” branding around its upcoming hardware products, according to court documents obtained by Wired. In November, digital library app OverDrive sued OpenAI over its use of “Sora” for its video-generation app. The company is also in legal disputes with various artists, creatives, and media groups in various geographies over copyright violations.

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Indian AI lab Sarvam’s new models are a major bet on the viability of open-source AI

Indian AI lab Sarvam on Tuesday unveiled a new generation of large language models, as it bets that smaller, efficient open-source AI models will be able to grab some market share away from more expensive systems offered by its much larger U.S. and Chinese rivals.

The launch, announced at the India AI Impact Summit in New Delhi, aligns with New Delhi’s push to reduce reliance on foreign AI platforms and tailor models to local languages and use cases.

Sarvam said the new lineup includes 30-billion and 105-billion parameter models; a text-to-speech model; a speech-to-text model; and a vision model to parse documents. These mark a sharp upgrade from the company’s 2-billion-parameter Sarvam 1 model that it released in October 2024.

The 30-billion- and 105-billion-parameter models use a mixture-of-experts architecture, which activates only a fraction of their total parameters at a time, significantly reducing computing costs, Sarvam said. The 30B model supports a 32,000-token context window aimed at real-time conversational use, while the larger model offers a 128,000-token window for more complex, multi-step reasoning tasks.

Sarvam’s 30B model is placed against Google’s Gemma 27B and OpenAI’s GPT-OSS-20B, among other models Image Credits:Sarvam

Sarvam said the new AI models were trained from scratch rather than fine-tuned on existing open-source systems. The 30B model was pre-trained on about 16 trillion tokens of text, while the 105B model was trained on trillions of tokens spanning multiple Indian languages, it said.

The models are designed to support real-time applications, the startup said, including voice-based assistants and chat systems in Indian languages.

Sarvam’s 105B is touted to compete against OpenAI’s GPT-OSS-120B and Alibaba’s Qwen-3-Next-80BImage Credits:Sarvam

The startup said the models were trained using computing resources provided under India’s government-backed IndiaAI Mission, with infrastructure support from data center operator Yotta and technical support from Nvidia.

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Sarvam executives said the company plans to take a measured approach to scaling its models, focusing on real-world applications rather than raw size.

“We want to be mindful in how we do the scaling,” Sarvam co-founder Pratyush Kumar said at the launch. “We don’t want to do the scaling mindlessly. We want to understand the tasks which really matter at scale and go and build for them.”

Sarvam said it plans to open-source the 30B and 105B models, though it did not specify whether the training data or full training code would also be made public.

The company also outlined plans to build specialized AI systems, including coding-focused models and enterprise tools under a product it calls Sarvam for Work, and a conversational AI agent platform called Samvaad.

Founded in 2023, Sarvam has raised more than $50 million in funding and counts Lightspeed Venture Partners, Khosla Ventures and Peak XV Partners (formerly Sequoia Capital India) among its investors.

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