How Upscale AI's Token Fabric Works: The Nvidia-Backed Network Built to Mix Rival Chips Without NVLink

By Carlos Montiel | Enterprise AI Specialist
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Published: 2026-10-12 | By: Carlos Montiel | Reading time: ~4 minutes

An Nvidia-funded startup has just unveiled a network designed to let chips from rival manufacturers live in the same cluster — exactly the kind of mix that NVLink, Nvidia's proprietary interconnect, makes difficult.

The Problem: The Network Inside the Rack Is Nvidia's Lock-In

An AI cluster has two networks. The scale-up network connects the GPUs inside a rack so they act as one giant accelerator; at Nvidia, that's NVLink, a proprietary link. The scale-out network connects racks to each other, usually over Ethernet (at Nvidia, Spectrum-X). Mixing accelerators from different manufacturers on the same network is hard because each vendor brings its own interconnect fabric.

What Upscale AI Launched

Upscale AI, an Nvidia-backed startup, introduced Token Fabric, a networking platform that aims to tie together chips from rival vendors in the same data center. According to The Next Web and Network World, it combines:

Hardware SkyFabriX in-house scale-up switch chip, 115.2 Tbps Scale-out systems based on Nvidia Spectrum-X, 400G to 1.6T Software SkyOS network operating system based on SONiC SkyCMD orchestration and observability with a single control plane Open standards: UALink and ESUN (Ethernet for Scale-Up Networking)

The idea is to extend existing protocols rather than replace them: scale-up traffic uses ESUN and scale-out uses standard Ethernet with RoCE, with a single control plane across both layers. Its CEO, Barun Kar, proposes measuring the network with AI metrics — time to first token, tokens per second, tokens per dollar and tokens per watt — instead of packet metrics.

Who's Behind It and When It Arrives

Upscale was founded in 2025 by Barun Kar and Rajiv Khemani, has raised close to US$500 million across three rounds and was valued at US$2 billion in June 2026, with investors including Nvidia, Salesforce Ventures and Temasek. The first part of Token Fabric arrives in the fourth quarter of 2026, with the full platform rolling out in stages through early 2027. Kar expects revenue in the tens of millions of dollars in 2027, possibly up to the low hundreds of millions.

A note of caution: there is no generally available product yet, and no independent benchmarks. That Nvidia is both an investor and the supplier of the Spectrum-X chips inside the solution shows that "open" here doesn't mean "Nvidia-free."

Proprietary Nvidia vs. an Open Ecosystem: What Is Actually Being Compared

NVLink (Nvidia) UALink / ESUN (Token Fabric) Nature proprietary open standards Chip mixing Nvidia only chips from multiple vendors Maturity in mass production product not yet generally available
What this means for a company buying AI: you won't have to choose an interconnect, but it affects you indirectly: if cloud providers and neoclouds can mix accelerators, price competition in compute goes up and dependence on a single manufacturer goes down. In the meantime, when you contract GPU capacity, ask what hardware and what network sit underneath, demand portability for your workloads across providers, and treat 2027 promises as a roadmap, not availability.
Carlos Montiel
Enterprise AI Solutions Architect
Specialist in LLMs, Agents, and Orchestration
guatemalia.com/#contacto · info@guatemalia.com

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