Astera Labs has opened a new evaluation window for its Leo CXL Smart Memory Controllers on Microsoft Azure’s M‑series virtual machines, offering customers the ability to add up to 2 TB of CXL‑attached memory per controller and increase total server memory by more than 1.5×. The preview release allows data‑center operators to test the technology in a production‑grade cloud environment before a broader rollout.
The Leo controllers run on CXL 2.0, the latest version of the Compute Express Link standard that adds support for persistent memory, switching, and security features. By bridging CXL hosts with DDR5 memory modules, the controllers deliver high‑bandwidth, low‑latency memory that is ideal for AI inference, in‑memory databases, and large‑scale analytics workloads that are limited by traditional CPU‑attached DRAM. The 2 TB per‑controller capacity and 1.5× scaling capability directly address the “memory wall” that has constrained performance in conventional server architectures.
Astera’s partnership with Microsoft marks the first time CXL‑attached memory has been integrated into a hyperscale cloud platform. The collaboration validates the technology at scale and signals that cloud providers are ready to adopt CXL for memory‑intensive workloads. Thad Omura, Chief Business Officer of Astera, said the joint effort “demonstrates our commitment to advancing memory connectivity solutions for cloud infrastructure” and that the new capability “unlocks performance and scalability for a growing list of AI and in‑memory database applications.”
Microsoft’s Vice President of Azure Hardware Systems, Rajesh Sankaran, highlighted the depth of the collaboration: “Astera Labs has been integral to advancing CXL capabilities for Azure through architectural discussions and platform integration.” The partnership underscores the strategic importance of CXL for both companies and positions Astera as a key enabler of cloud‑scale AI infrastructure.
Astera’s financial performance has been strong in the same period, with Q2 FY2025 revenue of $191.9 million and Q3 FY2025 preliminary revenue of $230.6 million, both reflecting year‑over‑year growth of 150% and 104% respectively. The company’s gross margin has consistently hovered around 75 %, indicating efficient operations and pricing power. The new product launch aligns with Astera’s Intelligent Connectivity Platform strategy, which integrates CXL, Ethernet, PCIe, and UALink technologies to deliver purpose‑built connectivity solutions for hyperscalers and enterprise cloud providers.
The broader CXL ecosystem is gaining momentum, and the Azure M‑series preview positions Astera at the forefront of this shift. By moving CXL from laboratory demonstrations to a practical cloud evaluation program, the company is helping to accelerate adoption of high‑capacity, low‑latency memory in AI and data‑intensive workloads. This milestone is expected to broaden Astera’s customer base and reinforce its leadership in the emerging memory‑connectivity market.
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