Ayar Labs raises $500m

Ayar Labs, the co-packaged optics (CPO) specialist, has raised $500 million in Series E funding.

The company will use the funds to scale high-volume production and test capacity to accelerate production.

This brings the company’s total funding to $870 million and raises the company’s valuation to $3.75 billion.


“AI infrastructure is hitting a power wall driven by interconnect inefficiency. As bandwidth demands explode, copper becomes the bottleneck — consuming too much power and limiting AI throughput per watt and per dollar,” says CEO Mark Wade, “Co-packaged optics overcomes these barriers, enabling thousands of GPUs to operate as a unified system. This funding fuels our ability to meet the demands of hyperscale AI.”


New investors include Alchip Technologies, ARK Invest, Insight Partners, MediaTek, Qatar Investment Authority (QIA), Sequoia Global Equities, and 1789 Capital.

Existing investors include Advent Global Opportunities, Boardman Bay Capital Management, IAG Capital Partners, Light Street Capital, and Playground Global, AMD Ventures and NVIDIA.

At the heart of Ayar’s product is the TeraPHY optical engine, built on the standard form factor, manufacturing, and packaging flows used by major accelerator and switch vendors for  integration into existing customer designs.

For more: www.ayarlabs.com.

David Manners

David Manners

David Manners has more than forty-years experience writing about the electronics industry, its major trends and leading players. As well as writing business, components and research news, he is the author of the site's most popular blog, Mannerisms. This features series of posts such as Fables, Markets, Shenanigans, and Memory Lanes, across a wide range of topics.

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