San Jose, California – Ayar Labs, a trailblazer in optical interconnect solutions for large-scale AI workloads, has announced a successful Series D funding round, raising $155 million led by Advent Global Opportunities and Light Street Capital. This funding brings Ayar Labs’ total capital raised to $370 million and boosts its valuation to over $1 billion.
The investment round saw participation from prominent investors including AMD Ventures, Intel Capital, and Nvidia, as well as new investors 3M Ventures and Autopilot. Existing backers such as Applied Ventures LLC, Axial Partners, Boardman Bay Capital Management, GlobalFoundries, IAG Capital Partners, Lockheed Martin Ventures, Playground Global, and VentureTech Alliance also contributed to the round.
Ayar Labs is at the forefront of developing in-package optical interconnect technology, which aims to replace traditional electrical interconnects with optical ones. This technology is designed to significantly enhance compute efficiency, reduce costs, and lower power consumption for AI infrastructure. The company’s flagship products, the TeraPHY Optical I/O chiplet and the SuperNova multi-port light source, are expected to be ready for high-volume production by mid-2026.
Mark Wade, CEO and co-founder of Ayar Labs, emphasized the importance of this funding, stating, “The backing of Light Street’s deep expertise in technology-specific investments, as well as Advent’s robust private and growth equity background, underscores the potential of our optical I/O technology to redefine the future of AI infrastructure.”
Jordan Katz, partner at Advent Global Opportunities, added, “We believe optical I/O is on the cusp of revolutionizing the future of AI infrastructure, and we recognize the significant growth potential of in-package optical interconnects.”
Optical interconnect technology developed by Ayar Labs has the potential to address some of the most pressing challenges faced by AI and high-performance computing (HPC) sectors today. As AI models grow in complexity and size, the demand for high-bandwidth, low-latency, and energy-efficient data transfer solutions becomes increasingly critical. Optical interconnects offer a promising solution by leveraging light for data transmission, which can significantly outperform traditional electrical interconnects in terms of speed and efficiency.
The use of optical interconnects can lead to dramatic reductions in power consumption and heat generation within data centers, two of the most significant cost drivers in these environments. By enabling more efficient cooling and reducing energy usage, Ayar Labs’ technology can contribute to substantial operational cost savings and a smaller carbon footprint for data centers.
Ayar Labs’ breakthrough innovations, such as the TeraPHY Optical I/O chiplet and the SuperNova multi-port light source, are expected to redefine the landscape of AI infrastructure. The TeraPHY chiplet integrates seamlessly with existing semiconductor processes, allowing for high-bandwidth data transmission with minimal energy loss. Meanwhile, the SuperNova light source provides a scalable and reliable photonic solution for next-generation AI workloads.
The company’s vision extends beyond AI and HPC applications, encompassing sectors such as telecommunications, data communications, and even future automotive technologies. By providing a versatile and scalable optical interconnect platform, Ayar Labs is poised to drive significant advancements across multiple industries.
With this substantial funding, Ayar Labs is well-positioned to scale its breakthrough technology and meet the growing demand for efficient and cost-effective AI infrastructure solutions. The company plans to expand its manufacturing capabilities, accelerate product development, and continue building strategic partnerships to support widespread adoption of its optical interconnect solutions.
Ayar Labs’ successful Series D funding round marks a pivotal moment in the company’s journey to revolutionize AI infrastructure. With strong backing from leading investors and a clear vision for the future, Ayar Labs is set to make a lasting impact on the technology landscape, driving innovation and efficiency in critical areas of AI and beyond.
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