AI data center cooling startup Phononic is in talks for a sale, with an estimated valuation reaching $1.5 billion.

The continued strong demand for AI data centers is radiating to a group of lesser-known companies that provide supporting components for chip servers, such as cooling systems. Phononic, a company with 17 years of development history specializing in semiconductor components that can solve overheating problems in AI data center servers, is now seeking to capitalize on this market demand. According to sources, the company, based in Durham, North Carolina, is in contact with potential acquirers and has initiated discussions on a business valuation of not less than $1.5 billion. One source stated that since the beginning of this year, the company has been working with the investment bank Lazada to evaluate various development plans. The details of the transaction are still under negotiation, and the company may potentially abandon the sale plan and instead proceed with a new round of financing.