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    Sources: Undertaking SGLang spins out as RadixArk with $400M valuation as inference market explodes

    Naveed AhmadBy Naveed Ahmad22/01/2026Updated:31/01/2026No Comments3 Mins Read
    GettyImages 1356382582

    **The AI Infrastructure Market is Heating Up with RadixArk’s $400M Valuation**

    You know what’s getting more interesting by the day? The AI infrastructure space! Just recently, SGLang, an open-source software that helps AI models run faster and cheaper, has spun out into a venture-backed startup called RadixArk. This new company has reportedly raised a sweet $400 million valuation in a funding round led by Accel – although I couldn’t find the exact size of the investment.

    For those who are new to the game, SGLang was essentially a baby of the University of California, Berkeley lab where Databricks co-founder Ion Stoica is based. And let’s just say it’s been making waves in the AI community. This software optimizes inference processing, which is basically the engine that powers AI models to run faster and more efficiently on the same hardware. Think of it like turbo-boosting your favorite sports car – it gets the job done a whole lot faster!

    Now, you might be wondering why this is such a big deal. Well, inference processing is where all the AI action happens, and companies that can optimize it can save a pretty penny. We’re talking tens of thousands of dollars per server, per year. So, it’s no surprise that companies like Baseten and Fireworks AI are already making waves in the space, with huge funding rounds to prove it. Baseten raised $300 million at a $5 billion valuation, and Fireworks AI secured $250 million at a $4 billion valuation just last October.

    Meet RadixArk’s CEO, Ying Sheng, who’s a former engineer at xAI and a key contributor to SGLang. She left Elon’s AI startup to co-found RadixArk, according to her recent LinkedIn announcement. And did I mention they’re building Miles, a framework designed specifically for reinforcement learning? Yep, this thing can train AI models to get smarter over time.

    But RadixArk isn’t alone in this open-source project spin-out party. Another project called vLLM is also making moves, and Forbes reported that they’re in talks to raise at least $160 million at a valuation of around $1 billion. Andreessen Horowitz is reportedly leading the charge, although the final numbers are still up in the air.

    It’s clear that the inference market is heating up, and several startups are vying for dominance. As AI becomes more important in industries like healthcare, finance, and transportation, the demand for efficient and cost-effective inference solutions is only going to grow. So, keep an eye on RadixArk and its competitors as they shake things up in the AI infrastructure space!

    Naveed Ahmad

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