Smooth-Stone, a startup developing ultra low-power microprocessors, has received $48 million in funding from a group of chip companies and venture capitalists. The move by companies like ARM and Texas Instruments emphasizes the importance of technologies that reduce power consumption of microprocessors and the fact that both ARM and TI - the two leading providers of technology and chips for mobile phones - are looking forward further improvements.

The capital will be applied directly to the final development and market delivery of high performance, low power chips that will change the server market and the makeup of data centers. Smooth-Stone funding partners include ARM, Advanced Technology Investment Company (ATIC), Battery Ventures, Flybridge Capital Partners, Highland Capital Partners and Texas Instruments.

“This kind of investment, the amount, and the strength of this syndicate is a strong endorsement for the innovation we are bringing to market. We look forward to taking advantage of the insights and know-how of these industry-leading investors” said Barry Evans, chief executive officer of Smooth-Creation.

Smooth-Stone promises to bring the low-power virtues of mobile phone technology to servers and data centers. Its semiconductors and software promise provide a solution for companies where energy consumption by servers has become a constraining and expensive issue by increasing the density of computer resources while significantly conserving energy, cooling and space in the data center. Smooth-Stone customers are projected to have new, unseen options as they plan their future server deployments.

“Our goal is to completely remove power consumption as an issue for the data center. Imagine that change for companies with a large presence on the Internet. They all deal with the reality that as the mass of information grows daily, so does their power consumption,” added Mr. Evans.

With this investment, ARM continues its seat on the Smooth-Stone board of directors, along with Evans and an independent, Howard Bubb. The three VCs, Battery Ventures, Flybridge Capital Partners and Highland Capital Partners, and ATIC, also join the board.

Tags: Smooth-Stone, ATIC, Texas Instruments, Business