Ayar Labs secures $150M in additional funding for AI optical technology

Ayar Labs has secured an additional $150 million in funding, bringing its total primary capital raised in 2026 to $650 million. This extension brings the company’s total outside funding to over $1 billion.

The photonics firm aims to use the capital to transition to high-volume manufacturing of co-packaged optics (CPO) solutions, such as its TeraPHY optical engine. These technologies are designed to replace traditional copper interconnects in AI and GPU clusters, which face limitations regarding distance, power consumption, and heat dissipation as AI systems scale.

Strategic investors include Wiwynn, AMD, Intel, MediaTek, and NVIDIA. The company also announced the opening of a new Bengaluru Design Centre in India to expand its global engineering capacity, complementing existing teams in the United States and Hsinchu, Taiwan.