Ayar Labs, the leader in co-packaged optics (CPO) solutions for AI scale-up, announced the closing of $500 million in Series E funding led by Neuberger Berman. The company will use the funds to scale high-volume production and test capacity to accelerate the deployment of its CPO solution. This brings the company’s total funding to $870 million and raises the company’s valuation to $3.75 billion.
The round aligns premier capital investors with industry leaders across the AI and semiconductor ecosystem, reinforcing the market’s support for Ayar Labs’ technology leadership and production-ready CPO solution for AI scale-up. New investors include Alchip Technologies, ARK Invest, Insight Partners, MediaTek, Qatar Investment Authority (QIA), Sequoia Global Equities, and 1789 Capital. They join existing financial institutions such as Advent Global Opportunities, Boardman Bay Capital Management, IAG Capital Partners, Light Street Capital, and Playground Global, and existing strategic investors, AMD Ventures, and NVIDIA.
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Neuberger Berman will take a board observer role, bringing deep experience in scaling category-defining technology companies. In addition, the investment participation of MediaTek and Alchip Technologies further strengthens Ayar Labs’ alignment with key custom ASIC design ecosystem partners.
Ayar Labs will use the new funds to scale high-volume production and test capacity, expand global operations, including at its new Hsinchu, Taiwan, office, strengthen ecosystem partnerships, and accelerate the deployment of its CPO solution. The company’s AI scale-up CPO solution unlocks AI performance and profitability by replacing bandwidth-limited copper interconnects with optical connectivity that provides the performance and efficiency gains required for next-generation AI infrastructure.
At the heart of the solution is the TeraPHY™ optical engine, built on the standard form factor, manufacturing, and packaging flows used by major accelerator and switch vendors for seamless integration into existing customer designs.
Ayar Labs is transforming AI infrastructure with the industry’s first proven co-packaged optics (CPO) solution manufactured in partnership with the world’s leading semiconductor ecosystem. By unlocking performance gains and reducing workload costs in a power-constrained environment, Ayar Labs’ TeraPHY™ optical engines are key to unleashing next-generation AI scale-up. Founded in 2015, Ayar Labs is funded by domestic and international venture capital firms, as well as strategic investors including AMD, Alchip Technologies, MediaTek, NVIDIA, and VentureTech Alliance.
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