BERKELEY, Calif.--In-Q-Tel, the venture capital arm for the U.S. Central Intelligence Agency (CIA), and others today (February 18, 2004) announced that they have poured $7 million in funds into Dust Inc., a developer of devices for wireless mesh sensor networks.

Other investors in Dust include Foundation Capital, with participation from Institutional Venture Partners.

The funds will be used to propel Dust's sensor network technology in the marketplace. The company's technology is based on more than 10 years of R&D at the University of California at Berkeley.

In 1997, Kris Pister, Dust's chief executive and founder, led an ambitious project at U.C. Berkeley to develop a complete autonomous sensing and communication package in a cubic millimeter-sized device with a sensor, coined "Smart Dust."

Based in Berkeley, Dust develops hardware and software for low-power wireless mesh networks. Dust networks enable reliable, unattended monitoring of critical processes and assets. Its devices can operate with zero maintenance for years at a time on standard AAA or coin cell batteries, according to the company.

Unlike traditional wired control systems, Dust networks require no cable runs for power or data communication -- reducing the cost and complexity of connecting, maintaining and retrofitting installed sensors and actuators.

Dust hopes to bring "Smart Dust" technology into the commercial market. Applications include low-powered, robust wireless sensing networks in building automation, industrial settings, and homeland security.

"Kris Pister is known as the most aggressive technologist in wireless sensor platforms, pushing for extremely low-power and reliable networks," said Gilman Louie, CEO of In-Q-Tel, the venture capital arm of the CIA, in a statement. "Dust's low cost, low energy, miniaturized solution makes possible new applications that were never before feasible. For people who want to know more about the environment, Dust is the indispensable piece of the solution, be it for situational awareness in an office building or a government application."

Last year, the CIA and others also invested $10 million in Bay Microsystems Inc., a developer of packet processing and traffic management chips (see November 27, 2003 story).

Besides Dust, other companies are also attempting to bring similar devices and technologies to the marketplace, including Digital Sun, Ember, Millenial Net, Sensicast, and Sensoria.

Intel Corp. is also working on the technology, of which it calls motes. The company invested in a sensor firm called Crossbow Technology.

And in what could eventually save millions of dollars in chip-production costs, Intel is planning to leverage its wireless sensor technology within its own fabs for a new application: semiconductor-equipment maintenance.

Intel is still in the R&D stages with the technology, but the company one day hopes to deploy wireless sensors or "motes" for what it calls "pre-emptive maintenance applications" in fab gear. The company is also involved in a project that monitors the vibrations at the Golden Gate Bridge in San Francisco (see October 28, 2003 story)..