San Jose-based innovator AYAR Labs, which develops chips that transmit data between chips via light, has raised $155 million from Nvidia (NVDA, Financial), AMD (AMD, Financial) Ventures, and Intel (INTC, Financial) Capital. The latest investment lifts the company’s valuation by over $1 billion as the semiconductor industry strives to find a more efficient way to perform artificial intelligence (AI) workloads.
Advent Global Opportunities and Light Street Capital will lead a round to help YAR Labs scale production of its light-based data transmission tech to overcome server system bottlenecks due to heavy AI demand. AYAR Labs replaces traditional electrical interconnects with photon-based solutions to address problems of power consumption, heat generation, and data transfer speed.
“We aim for the solution to meet the workload placed on current hardware, particularly on interconnects,” said Mark Wade, co-founder and CEO. AYAR Labs hopes to qualify its chips for high-volume manufacturing by mid-2026. Customers are already trialing AYAR Labs’ cutting-edge technology, and the funding will accelerate production.
This article first appeared on GuruFocus.
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