Celero Communications raises $275M for AI networking chips

Celero Communications, an Irvine, California-based semiconductor startup, has secured significant funding to develop coherent digital signal processor (DSP) chips optimized for artificial intelligence workloads. The company has raised a total of $275 million, including a $100 million Series B round led by Alphabet’s growth fund, CapitalG.

Celero’s technology targets the networking challenges within AI data centers, specifically the movement of data between GPU clusters over fiber optic cables. The company’s coherent DSPs are designed to translate optical signals into electrical signals and back again, managing data transmission over long distances. Celero claims its chips offer lower latency and reduced power consumption compared to existing solutions by filling a gap between overbuilt telecom-grade DSPs and insufficient short-reach alternatives.

Founded in 2024 by industry veterans Nariman Yousefi and Oscar Agazzi, the startup aims to address the growing demand for efficient networking fabrics as AI clusters scale in size and complexity.