Optical interconnects lead a new revolution in chip interconnects.
Recently, optical interconnect startup Ayar Labs completed a $155 million Series D funding round, with a valuation exceeding $1 billion. It has been reported that well-known tech companies such as NVIDIA, AMD, and Intel participated in this funding. The company stated that the latest funding will be used to expand production capacity and strengthen customer collaboration.
With the rapid development of artificial intelligence, traditional copper wire interconnect technology has struggled to meet the increasingly complex data transmission demands of AI models. Experts point out that this bottleneck severely restricts the computational performance, energy efficiency, and overall scalability of AI models—making the search for more efficient data transmission solutions particularly urgent.
Ayar Labs is focused on this.
Founded in 2015, Ayar Labs is dedicated to developing optical interconnect technology aimed at replacing traditional electrical I/O and breaking through the limitations of copper wires and pluggable optical components. Analysts indicate that Ayar Labs' optical I/O technology can enhance data transmission speeds, eliminate traditional interconnect bottlenecks, and this technology not only reduces latency and power consumption but also optimizes AI infrastructure, improving efficiency and cost-effectiveness.
Undoubtedly, Ayar Labs' technology has attracted the attention of many industry giants. The company's CEO Mark Wade stated that the support from leading GPU providers AMD, NVIDIA, as well as semiconductor foundries GlobalFoundries, Intel, and TSMC, highlights the potential of its optical I/O technology to reshape AI infrastructure in the future.
Currently, Ayar Labs has delivered approximately 15,000 sets of TeraPHY optical transmission and SuperNova laser source products to some customers. The company expects that by 2028, the annual production of this product will soar to over 100 million sets.
However, some analysts warn that although Ayar Labs' development prospects appear bright, it is premature to draw conclusions. TheNextPlatform points out that the investments from NVIDIA, AMD, and Intel may indicate that these companies intend to deploy Ayar Labs' technology in their computing engines, but it may also simply be to gain internal information and secure a competitive edge for future deployments.

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Optical interconnect startup Ayar Labs has completed a $155 million Series D funding round, with a valuation exceeding $1 billion. The company is dedicated to developing optical interconnect technology aimed at replacing traditional electrical I/O, breaking through the limitations of copper wires and pluggable optical components. Currently, Ayar Labs has delivered approximately 15,000 sets of TeraPHY optical transmission and SuperNova laser source products

- Ayar Labs, an optical interconnect startup, recently raised $155 million in Series D funding, achieving a valuation over $1 billion, with participation from major tech companies like NVIDIA, AMD, and Intel.  
- The funding will enhance production capacity and strengthen customer collaborations, addressing the limitations of traditional copper interconnects in meeting the demands of complex AI models.  
- Analysts highlight that Ayar Labs' optical I/O technology could significantly improve data transmission speeds and efficiency, although some caution that the investments may also serve to provide these companies with strategic insights.

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Rare! NVIDIA, AMD, and Intel jointly invest, this company aims to "end copper interconnects"