Ayar Labs, a pioneer in optical interconnect technology for chip-to-chip and system-to-system connections, has recently secured $155 million in Series D funding. This investment round includes contributions from AMD Ventures, Intel Capital, and Nvidia, signaling the significant role optical interconnects play in the advancement of next-gen AI and high-performance computing systems. Ayar Labs anticipates launching its products commercially by mid-2026.
This innovative company has successfully miniaturized fiber-optic communication technology to be integrated within chip packages. This advancement is crucial for major corporations like AMD, Intel, and Nvidia, who are keen on transitioning from traditional electrical interconnects to optical ones, according to Bloomberg. Currently, Ayar Labs is developing two key products: the TeraPHY Optical I/O chiplet and the SuperNova multi-port, multi-wavelength light source.
The TeraPHY Optical I/O chiplet is impressively small, enabling it to fit seamlessly into sophisticated chip packaging. It provides up to 4 Tbps of bidirectional bandwidth and boasts a latency of just 5 ns per chiplet, plus time-of-flight (TOF) latency, making it ideal for package-to-package connections. Despite its speed, the chiplet is energy efficient, consuming only about 10W, or 5 pJ per byte.
The SuperNova remote light source serves as another integral component of Ayar Labs’ optical I/O solution. Capable of delivering up to 16 wavelengths of light to support 16 ports, it can manage light for 256 data channels or 16 Tbps bidirectional. Ayar Labs claims that this device can work in perfect harmony with TeraPHY, offering 5-10 times the bandwidth, a tenfold reduction in latency, and 4-8 times the energy efficiency compared to existing solutions like pluggable optics and electrical SerDes.
“Our technology is backed by leading GPU providers AMD and Nvidia, as well as major semiconductor foundries such as GlobalFoundries, Intel Foundry, and TSMC,” stated Mark Wade, CEO and co-founder of Ayar Labs. “The support from Advent, Light Street, and other investors not only underscores the transformative potential of our optical I/O technology but also solidifies our vision for the future of AI infrastructure,” he added. Wade also acknowledged the valuable expertise and investment background brought by Light Street and Advent in this funding round.
GlobalFoundries is currently responsible for manufacturing Ayar’s chips, although the company is also collaborating with Intel to incorporate its photonic technology into Intel’s manufacturing processes and is in talks with TSMC. Ayar’s chips, including the TeraPHY and SuperNova, are undergoing customer testing and are slated for mass production by mid-2026.
The Series D funding round, led by Advent Global Opportunities and Light Street Capital, also saw participation from new investors such as 3M Ventures and Autopilot. Long-time supporters like GlobalFoundries, Applied Ventures LLC, Lockheed Martin Ventures, and VentureTech Alliance also contributed, bringing Ayar Labs’ total funding to $370 million and pushing its valuation over the $1 billion mark.
