Core Insights - The article discusses the escalating arms race in artificial intelligence (AI) computing capabilities, highlighting a significant wave of global infrastructure investment. However, the AI industry faces a fundamental barrier in data movement between processors due to the limitations of existing copper interconnect technologies, which cannot effectively scale to meet the demands of next-generation AI requiring millions of processors. In this context, photonic chip startups Celestial AI and OpenLight are emerging to provide faster and more energy-efficient solutions to meet the needs of hyperscaler clients like Amazon, Microsoft, and Google [1]. Group 1: Celestial AI Developments - Celestial AI has secured $255 million in investments from TSMC's VentureTech Alliance and Samsung's Catalyst Fund, bringing its total funding to $520 million. The company plans to use this funding to strengthen its supply chain and deepen partnerships with foundries, including TSMC [2]. - Celestial AI expects to begin selling its first chips by mid to late 2026, focusing on server "scale-up" networks that account for 85% of data center traffic. The company anticipates that its scale-up sales will surpass copper-based Ethernet scale-out switches starting in 2025 [5]. - The core technology of Celestial AI, Photonic Fabric, offers optical interconnects from chip-to-chip and server-to-server, significantly outperforming Nvidia's NVLink in terms of power consumption. Celestial AI is positioning its Optical Memory Interface Bridge (OMIB) as an alternative to NVLink [5][7]. Group 2: OpenLight Developments - OpenLight raised $34 million in funding from investors including Juniper Networks and Lam Research. The company plans to use this capital to expand its process design kit (PDK) for active and passive photonic components, with production expected to begin for its first customers by the end of 2025 [4][11]. - OpenLight's competitive advantage lies in its use of indium phosphide technology, which allows for the integration of lasers onto chips. The company has demonstrated a 400 Gbps modulator with low power consumption of approximately 1.5 microjoules per bit [11]. - OpenLight provides a library of components (PDK) to enable customers to design their own chips, collaborating with ASE Holdings' subsidiary, Siliconware Precision Industries [14]. Group 3: Competitive Landscape - The photonic chip sector is becoming increasingly competitive, with players like Ayar Labs, Lightmatter, and Huawei entering the market. Huawei aims to challenge Nvidia's NVLink market with its new SuperPod cluster, which plans to connect up to 15,488 Ascend NPUs by 2026 [15]. - Lightmatter announced the Passage M1000 platform, which offers a total optical bandwidth of 114 Tbps, and is collaborating with GlobalFoundries and Amkor to begin production based on this platform [17][18]. - Quantum computing startup PsiQuantum is also manufacturing photonic chips using standard 45nm silicon nitride processes at GlobalFoundries [21].

Core Insights - OpenLight has transitioned from a Synopsys subsidiary to a venture-backed company, focusing on the demand for faster and energy-efficient data movement in AI data center networks [1] - The company’s technology is positioned to support various applications, including telecom, automotive, industrial sensing, IoT, healthcare, and quantum computing [1] Company Overview - OpenLight specializes in custom Photonic Application-Specific Integrated Circuits (PASICs) that integrate both active and passive components into a single chip [5] - The company holds over 360 patents related to its Process Design Kit (PDK) and the manufacturing of heterogeneously integrated III-V photonics [2][5] Technology and Product Development - OpenLight's PDK allows customers to access a library of components, facilitating the design and fabrication of PASICs [2] - The company plans to expand its PDK library with new components, including a 400Gb/s modulator and indium phosphide on-chip laser technology [3] - OpenLight aims to scale its standard-based reference Photonic Integrated Circuits (PICs) to 1.6Tb/s and 3.2Tb/s [3] Investment and Growth Strategy - The recent capital injection will enable OpenLight to enhance its R&D efforts and accelerate the market introduction of its products [4] - The company is supported by a strong syndicate of investors with expertise in the semiconductor and photonics industry, which will aid in scaling operations [4] Market Position and Future Outlook - OpenLight is positioned as a technology leader in the photonics field, with a focus on achieving scale in manufacturing to meet the growing demand for optical connectivity in data centers [4] - The company’s heterogeneous integration technology is expected to transform data processing and transmission, particularly for next-generation AI architectures [4]

Core Insights - OpenLight and Tower Semiconductor have successfully demonstrated a 400G/lane modulator on Tower's silicon photonics platform, achieving a better than 3.5dB extinction ratio using PAM-4 modulation at a drive voltage of 0.6 volts peak-to-peak [2][3] - The integrated silicon photonics solution supports scalable optical communication architectures from 100G to 400G, addressing the increasing demand for high-speed data transfer in cloud computing, AI, and machine learning applications [3][4] - The collaboration between OpenLight and Tower Semiconductor aims to provide a cost-effective and reliable solution for next-generation optical communication technology, minimizing design complexity and time to market for customers [5][8] Company Overview - OpenLight is a leader in custom PASIC chip design, integrating active and passive components of silicon photonics devices into a single chip, with over 350 patents [7] - Tower Semiconductor specializes in high-value analog semiconductor solutions, offering customizable process platforms across various markets, including consumer, industrial, and automotive sectors [8]