Akash Systems Deploys Diamond-Cooled GPUs

- The core of the technology lies in using synthetic diamond, which is the most thermally conductive material known, to dissipate heat from semiconductor chips. This approach can reduce GPU hotspot temperatures by 10°-20°C, even in systems that already utilize liquid cooling. - Akash Systems was co-founded in 2016 by CEO Felix Ejeckam and Ty Mitchell. Ejeckam is credited with inventing a material called Gallium Nitride (GaN)-on-Diamond, which forms the basis of the company's technology and was initially developed for satellite applications. - The deal with NxtGen AI Pvt Ltd, valued at $27 million, will see Akash Systems' "Diamond Cooled" servers deployed across NxtGen's data centers in India. NxtGen, a Bangalore-based company established in 2022, aims to become a highly energy-efficient AI compute provider through this partnership. - Performance benefits of the diamond cooling technology include the potential for up to 25% GPU overclocking, a 50% reduction in GPU fan speed, and a 90% decrease in fan energy consumption. Akash Systems also claims the technology can double the operational lifetime of servers. - The company has attracted significant investment from notable venture capital firms, including Khosla Ventures and Founders Fund. It has also been approved for up to $68 million in funding under the U.S. CHIPS and Science Act to bolster domestic semiconductor manufacturing. - The market for data center cooling is expanding rapidly, with a global market size valued at over $26 billion in 2025 and projected to grow significantly. This growth is driven by the increasing heat generated by AI and high-performance computing workloads, which is pushing the limits of traditional air and liquid cooling systems.