Tag: WhiteFiber

  • WhiteFiber’s 83 km, 136 Tbps Link Bets Fiber Can Pool AI Power Across Sites

    WhiteFiber’s 83 km, 136 Tbps Link Bets Fiber Can Pool AI Power Across Sites

    TL;DR · 30-second read

    The Short Version

    WhiteFiber, a company that rents out computing power for artificial intelligence, is now selling a way to make two data centers about 50 miles apart work as one giant computer. The two buildings are joined by a bundle of fiber-optic cables.

    Why it matters: the computers that train artificial intelligence are often limited by how much electricity a single building can get. WhiteFiber’s idea is to combine spare electricity at several existing buildings instead of building one enormous new site.

    The top speed is still being tested, and no customers have been named yet.

    StorageReview reported on September 25 that WhiteFiber (WYFI) has made WhiteFiber Continuum commercially available. Continuum is the productized version of Project Redwood, a two-site GPU supercluster the company first detailed in July. It links two HITRUST-certified QTS data centers 83 kilometers apart over 12 Zayo dark fiber strands, with DriveNets supplying the Ethernet network fabric and WEKA’s NeuralMesh supplying shared storage and memory.

    WhiteFiber rates the architecture at 136 Tbps of aggregate bandwidth, which it describes as 170 wavelength channels of 800 gigabits per second each, with 0.9 milliseconds of guaranteed round-trip latency. The July research result measured 111.2 Tbps on part of the fiber spectrum. Full-spectrum testing to confirm the guaranteed commercial specifications is underway, and the company has submitted patent applications for the implementation.

    Executive Summary

    WhiteFiber is selling a way to make GPUs in two separate buildings behave like a single cluster. GPUs are the chips that train and run AI models, and large training jobs have normally been confined to one building because the chips have to exchange data constantly. Continuum stretches that boundary to 83 kilometers by carrying the traffic over leased, unlit fiber that WhiteFiber lights itself, which the industry calls dark fiber.

    The launch matters because of what WhiteFiber says the design is for. The company pitches Continuum as a way to get past the power and space ceiling of a single campus. Enterprises would pool GPUs across sites, and telecom and metro facilities with spare power could contribute capacity to one logical cluster. If that works at the stated performance, the useful unit of AI capacity is no longer one building with enough electricity. It is any set of buildings connected by enough fiber.

    The headline number still needs confirmation. The 136 Tbps figure is a design rating that depends on additional wavelengths coming online and on full-spectrum testing now in progress. The figure WhiteFiber has actually measured is 111.2 Tbps, taken in July on part of the spectrum.

    Fiber as a Way Around the Single-Site Power Ceiling

    AI capacity is increasingly set by power: how many megawatts a single building or campus can draw. A megawatt is a million watts, and a large GPU campus uses many of them. A company that has filled its power allocation at one site usually faces a choice between waiting for more grid capacity and building a new campus from scratch. WhiteFiber offers a third option. Continuum lets enterprises pool GPUs across sites and add overflow training and inference capacity without a separate greenfield deployment. It also lets telecom and metro facilities with spare power and fiber join the same logical cluster.

    The design choice that makes this plausible is what crosses the link. According to WhiteFiber’s product page, both sites carry live traffic at the same time and only model gradients cross the 83 km connection. Gradients are the incremental updates each group of GPUs computes during training. The bulk of the work and data stays local to each site, and the two halves synchronize their learning over the fiber. A single job can span both sites, or the cluster can be split into independent workloads that burst from one site to the other as demand shifts.

    Fiber does not create power. It lets power that already exists in two places be used by one workload. The groups most affected are operators whose sites have stranded capacity, such as telco central offices and metro facilities with power to spare but too little of it to host a full cluster. Fiber owners like Zayo, whose dark fiber becomes part of the compute fabric, stand to gain as well. Enterprises that have maxed out a campus are the third group. Whether this changes where AI capacity gets built will depend on how much of a real training job’s performance survives the split, and WhiteFiber has not yet published that comparison.

    What 136 Tbps Establishes, and What It Does Not Yet

    The internal arithmetic holds together. 170 wavelength channels at 800 gigabits per second each come to 136 terabits per second. Dense wavelength-division multiplexing sends many separate colors of light down the same fiber strands, each carrying its own data stream. Adding wavelengths is how the design scales from the 111.2 Tbps measured in July to the 136 Tbps now rated.

    The status of the number matters to buyers. WhiteFiber says the design reaches 136 Tbps after additional wavelengths come online, and that full-spectrum testing is underway to confirm the guaranteed commercial specifications. Enterprises evaluating Continuum should treat 111.2 Tbps as the demonstrated figure and 136 Tbps as the contracted target until test results are released.

    The latency figure tells a different story. WhiteFiber guarantees 0.9 milliseconds round trip, which it says is within 8% of the physical limit for light in fiber over 83 km. There is little left to optimize, so distance itself is the fixed cost of the architecture. Longer links between sites add latency in proportion to distance. The 83 km result shows the approach works at metro-to-regional range, and it says nothing yet about sites much farther apart.

    Resilience and Data Boundaries as the Enterprise Pitch

    Continuum is also sold as a resilience and compliance product. WhiteFiber says neither site is a single point of failure, so training runs are designed to continue if one location goes down. For regulated industries, it says sensitive workloads can stay within their originating jurisdiction while failover and pooled compute happen across locations. HITRUST is a security and privacy certification framework widely used in healthcare, and the certification of both QTS facilities is aimed at that audience.

    CEO Sam Tabar framed the product around both themes, saying it is for enterprises that need AI compute to “hold up under compliance requirements, and not break when a single site has a problem.” These are credible goals for a two-site design. They are also claims about behavior under failure, and no failure test results have been released.

    A Partner Stack With a Patent Claim on Top

    Continuum is assembled from named partners. QTS provides the facilities, Zayo the fiber, DriveNets the Ethernet-based network fabric, and WEKA the shared storage and memory layer. WEKA CEO Liran Zvibel said NeuralMesh lets GPUs that sit many kilometers apart “operate as if the data were local.” DriveNets said its fabric is built to maximize GPU utilization across scale-across superclusters. Using Ethernet rather than proprietary interconnects for the inter-site fabric keeps the design within a widely supported networking standard.

    WhiteFiber calls Continuum the first commercially available distributed GPU supercluster architecture and has submitted patent applications for the implementation. Submitted applications are not granted patents. Because most of the stack comes from third-party vendors, WhiteFiber’s lasting advantage will likely come from its integration and operating know-how, and from customer contracts once it signs them.

    Background

    WhiteFiber, which trades under the ticker WYFI, provides AI infrastructure. In July it detailed Project Redwood, a research effort that connected GPUs in two data centers 83 km apart and measured 111.2 Tbps across the link. Its partners are well-established infrastructure suppliers. QTS operates data centers, Zayo owns and leases fiber networks, DriveNets builds Ethernet networking for AI clusters, and WEKA makes high-performance data storage software.

    Large AI models have traditionally been trained inside a single building. The GPUs doing the work exchange data constantly, and longer distances add delay. As single campuses run up against limits on how much power and space they can secure, operators have looked for ways to spread one workload across several sites. Continuum is WhiteFiber’s commercial answer to that problem.

    Sources

    Source: WhiteFiber Continuum Goes Commercial, Scaling Its 83 km Two-Site GPU Supercluster Design to 136 Tbps (StorageReview.com): WhiteFiber makes its two-site, 83 km GPU supercluster architecture commercially available with a rated 136 Tbps of inter-site bandwidth.

  • WhiteFiber Buys 2 North Carolina Sites as $865M Nscale Lease Begins

    WhiteFiber Buys 2 North Carolina Sites as $865M Nscale Lease Begins

    TL;DR · 30-second read

    The Short Version

    WhiteFiber, a company that rents out computing power for artificial intelligence, is spending $60 million on two properties in North Carolina to build more data centers, which are warehouses full of computers. The sites are expected to come with enough electricity for tens of thousands of homes, and that much power is increasingly hard to get.

    It already has customers. A 10-year deal worth about $865 million has started paying, and the company has signed more than $550 million in other contracts since May.

    The catch: it still loses money, $15 million last quarter, and it issued new shares, so each existing share now owns a smaller slice of the company.

    WhiteFiber, Inc. (WYFI), an operator of AI data centers and GPU cloud services, attached an investor presentation to an 8-K filed with the SEC on September 14, 2026. Minichart’s summary of the presentation reported that on August 16 the company signed a definitive agreement to buy two North Carolina industrial properties, designated NC-2 and NC-3, for $60 million in cash. The sites are expected to provide at least 60 MW of initial gross electrical capacity, with potential for roughly 198 MW over time. Confirmation of that capacity is a closing condition, and closing is expected in the fourth quarter of 2026.

    The presentation also reported more than $550 million of new cloud contract value booked since May 2026. Billing has begun at the NC-1 campus under Nscale’s 10-year, 40 MW lease, which is worth about $865 million. WhiteFiber described a pipeline of roughly 1.5 GW, completed an August exchange that retired about 86% of its 2031 convertible notes, and reported a second-quarter net loss of $15.0 million.

    Executive Summary

    WhiteFiber’s September investor update shows a company reorganizing around contracted, long-duration revenue. At its core is the Nscale anchor lease at NC-1. That single contract averages about $86.5 million a year over its term, which is close to the company’s entire $94.5 million of combined revenue for the twelve months ended June 30. Around it sit five disclosed cloud contracts and a sixth undisclosed one, spread across Canada, Iceland, Paris and WhiteFiber’s own U.S. fleet.

    The $60 million North Carolina purchase is the physical follow-through. WhiteFiber is using its backlog as the case for buying powered land before it has binding tenants, and it says non-binding letters of intent backed by investment-grade credit are in hand. The strategy is coherent. The open questions are about execution. Revenue depends on construction, GPU deliveries and customer acceptance. Net losses widened year over year, and the note exchange added about 6.3 million shares.

    From GPU Renter to Landlord

    WhiteFiber has two businesses. One rents GPU computing capacity by the hour or by contract, which is its cloud services business. The other leases data center space and power to other AI companies, which is its data center business. Cloud is still the larger segment, with $79.6 million of trailing-twelve-month revenue against $15.0 million from data centers. The data center line, however, grew 10.7 times from FY2024, and the Nscale lease is set to change the mix sharply once it ramps.

    The economics of that shift are the story. A 10-year lease for 40 MW of IT load gives visibility that hourly GPU rental cannot. IT load is the power available to customers’ servers. Gross capacity, by contrast, also covers cooling and other building overhead. WhiteFiber says Phase 1 of NC-1 is fully contracted and that Duke Energy has completed work to deliver the initial 54 gross MW. Management believes the site could eventually reach 200 gross MW. If it does, NC-1’s current tenant would occupy only part of a campus that already has a utility relationship, which is a meaningful advantage when grid connections are the industry’s main bottleneck.

    The presentation says initial billing began in the third quarter and that full revenue contribution is expected in the same quarter as the facility reaches contractual capacity. That timing is still subject to deployment, commissioning and customer acceptance. Whether the ramp lands on schedule is the near-term test investors will watch in the next quarterly report.

    Buying Power, Not Just Buildings

    At $60 million for a minimum of 60 MW of initial gross capacity, WhiteFiber is paying roughly $1 million per initial megawatt for NC-2 and NC-3. That falls to about $300,000 per megawatt if the full 198 MW materializes. The price covers the properties, not the fit-out. Turning industrial buildings into AI-ready halls with high-density power and liquid or advanced cooling costs far more than the land. The acquisition is best read as an option on scarce, electrified sites rather than as the full cost of new capacity.

    Two structural protections stand out. First, the power capacity has to be confirmed as a condition of closing, so WhiteFiber should not end up owning sites without the electricity it is paying for. Second, the sites are about 55 miles from NC-1, which could let the company reuse staff, contractors and regional know-how. The target of initial ready-for-service capacity in the third quarter of 2027 is aggressive for conversions of this kind, and it depends on the deal closing on time in late 2026.

    Demand support is real but not yet binding. WhiteFiber cites non-binding letters of intent backed by investment-grade credit from prospective customers. That is a stronger signal than a speculative build. It is still short of a signed lease like Nscale’s at NC-1.

    How Solid Is $550 Million of Cloud Backlog?

    The five disclosed contracts total about $538 million, and the unpresented July win of roughly $16 million brings the figure above $550 million. The contracts differ considerably. Terms run from two years (Hyperbolic / Modal Labs, about $17 million) to five years (the Paris deployment, over $160 million, and a Canada inference contract, about $88 million). Prime Intellect’s roughly $165 million three-year deal is the largest single item. Averaged evenly across their terms, the five contracts would add up to around $150 million a year at full run rate. That figure is simple arithmetic, not company guidance.

    Most of this backlog requires new hardware: NVIDIA B300 systems in Canada and VR200 systems for WhiteFiber’s first Vera Rubin deployment in the U.S. The capital cost of those GPUs is the central economic question. The Paris contract is the most de-risked on the page, with an investment-grade customer, customer prepayments and project-level financing. The Hyperbolic / Modal Labs deal is the least capital-intensive because it uses H200s already in the fleet and needs no new GPU spending.

    Contract length matters because GPU generations turn over quickly. A three-year contract on current-generation hardware can recover a large share of the equipment cost within the term. What the systems earn afterward is harder to predict. The revenue-sharing upside on the Canada inference contract adds potential gains, and it also means that part of that contract’s value depends on the customer’s success.

    The Balance Sheet Behind the Build

    The August note exchange raised about $298.5 million in net proceeds from new $310 million 2032 convertible notes. WhiteFiber spent roughly $118.5 million in cash to retire about 86% of its 2031 notes, leaving around $180 million net. It also issued about 6.3 million shares, roughly 16% of the 38.85 million basic shares outstanding afterward. The conversion price on about 91% of the principal involved is set at a 25% premium to a $27.07 reference price. Separately, WhiteFiber holds a zero-strike call on 5.91 million shares, bought in January 2026 for about $120 million. Arrangements of that kind are generally used to offset dilution.

    The operating picture shows growth ahead of profit. Second-quarter revenue rose about 54% to $28.8 million, and adjusted EBITDA increased to $5.5 million from $3.3 million. Over the same period the net loss widened to $15.0 million from $8.8 million, which included a $5.0 million impairment of capitalized software. That pattern is common for infrastructure companies spending ahead of contracted revenue. It does mean the company’s expansion depends on continued access to capital markets and project financing.

    Background

    WhiteFiber is a New York-headquartered AI infrastructure company that went public in 2025 after being carved out of Bit Digital. It runs two lines of business: GPU cloud services, which rent high-end NVIDIA computing capacity to AI developers, and data center services, which lease powered space to other AI operators. Its footprint spans Canada, Iceland, the United States and a Paris region deployment, with its flagship owned campus, NC-1, in North Carolina.

    WhiteFiber belongs to a group of so-called neoclouds, specialist GPU providers that have grown alongside demand for AI training and inference. Across the sector, the limiting factor has shifted from chips to electricity, because utility grid connections can take years to secure. Companies that control powered sites are therefore increasingly able to sign long-term contracts. WhiteFiber’s 10-K for 2025 was filed on March 26, 2026, and its 10-Q for the second quarter on August 12, 2026.

    Sources

    Source: WhiteFiber Signs $60 Million Deal for Two North Carolina Data Center Sites (Minichart), a summary of WhiteFiber’s September 2026 investor presentation. Related coverage: WhiteFiber unveils $865M Nscale anchor deal, >$550M cloud wins and 1.5GW pipeline (TradingView) and WhiteFiber Updates Investors on AI Data Center Strategy (TipRanks).

    Primary sources: WhiteFiber, Inc. Form 8-K Current Report, filed September 14, 2026; Exhibit 99.1: Investor Presentation of WhiteFiber, Inc. as of September 2026.