Ayar Labs

Ayar Labs

Optical chiplet interconnects for high-speed data

Overview

Ayar Labs makes advanced interconnects for connecting chips. Its products replace traditional electrical I/O with optical links to move data between chips, enabling much higher bandwidth at lower power. The optical interconnects, including high-density chiplets and lasers, work by guiding light to transfer signals between chips instead of electrical wires, reducing energy per bit and increasing data rates. The company differentiates itself by offering Photons Over Electrons, leveraging light-enabled chip-to-chip communication and high-speed optical interconnects in HPC and AI workloads, including an optically enabled FPGA developed with Intel. Ayar Labs targets AI, HPC, and other demanding compute environments where fast, energy-efficient data transfer matters. Its goal is to scale chip-to-chip communication to meet growing compute demands by delivering high-bandwidth, low-power optical interconnect solutions that replace electrical I/O.

About Ayar Labs

Simplify's Rating
Why Ayar Labs is rated
B-
Rated B on Competitive Edge
Rated B on Growth Potential
Rated C on Differentiation

Industries

Data & Analytics

Hardware

Industrial & Manufacturing

AI & Machine Learning

Company Size

201-500

Company Stage

Series E

Total Funding

$871.7M

Headquarters

Santa Clara, California

Founded

2015

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Simplify's Take

What believers are saying

  • March 2026's $500 million Series E funds production and test expansion through 2026.
  • June 2026 NVLink Fusion entry strengthens credibility with NVIDIA-centered AI infrastructure buyers.
  • May 2026 Computex and OFC demos show deployment-ready racks, liquid cooling, and SuperNova lasers.

What critics are saying

  • Marvell's Celestial AI and NVIDIA-backed laser suppliers compress Ayar's differentiation by 2027.
  • Commercial adoption depends on hyperscaler deployments, but 2026 activity remains demos and partnerships.
  • If TeraPHY misses volume manufacturing targets, Ayar becomes a valuation story without shipments.

What makes Ayar Labs unique

  • TeraPHY chiplets deliver 8 Tbps optical I/O, pairing photonics with UCIe compatibility.
  • Wiwynn integration pushes Ayar from chiplets into rack-scale systems with 1,024+ accelerators.
  • NVIDIA NVLink Fusion compatibility and strategic investors AMD, NVIDIA, MediaTek widen ecosystem access.

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Funding

Total Funding

$871.6M

Above

Industry Average

Funded Over

8 Rounds

Series E funding typically includes additional rounds after Series D if the company needs more capital. The business is usually stable, and these rounds are typically used for further expansion or to address market challenges.
Series E Funding Comparison
Above Average

Industry standards

$100M
$250M
Reddit
$500M
Ayar Labs
$1.3B
Epic Games
$1.5B
Airbnb

Growth & Insights and Company News

Headcount

6 month growth

-4%

1 year growth

-4%

2 year growth

-4%
Xiamen Precise Display
Aug 13th, 2026
Taiwan's packaging and integration ecosystem positions it as the backbone of CPO scaling, Ayar Labs says.

Taiwan's packaging and integration ecosystem positions it as the backbone of CPO scaling, Ayar Labs says. * August 13, 2026 * Posted by jeff The technical feasibility of co-packaged optics (CPO) has been demonstrated repeatedly at major industry conferences in recent years. At the 2026 OCP APAC Summit, however, Ayar Labs CEO Mark Wade shifted the focus from whether CPO works to whether it can scale commercially.

Crypto Briefing
Jul 3rd, 2026
Ayar Labs raises $500M at $3.75B valuation as investors chase AI semiconductor plays beyond Nvidia.

Ayar Labs raises $500M at $3.75B valuation as investors chase AI semiconductor plays beyond Nvidia. The optical interconnect startup's Series E round draws heavyweight backers including AMD, Nvidia, and Qatar's sovereign wealth fund, signaling a massive bet on post-copper computing infrastructure. 6 hours ago Sponsored: Vera - AI-powered prediction market intelligence, built for serious analysts Explore Vera Ayar Labs has raised $500 million in a Series E funding round that values the AI semiconductor startup at $3.75 billion as investors broaden their exposure beyond leading chipmakers such as Nvidia. The round was led by Neuberger Berman and brings Ayar Labs' total funding to $870 million. New investors included ARK Invest, Insight Partners, Qatar Investment Authority, Sequoia Global Equities and 1789 Capital. Strategic investors AMD, MediaTek, Alchip Technologies and Nvidia also participated. Ayar Labs develops co packaged optics technology that uses light rather than electrical signals to move data between AI processors and memory. The company says the approach can address bandwidth and power constraints that emerge as AI systems expand across thousands of chips. The company plans to use the new capital to expand production and testing capacity, grow its global operations and accelerate deployment of its optical interconnect products. The expansion includes its new office in Hsinchu, Taiwan. Ayar Labs has also joined Nvidia's NVLink Fusion ecosystem, allowing its optical technology to work with Nvidia based rack scale systems and custom AI chips. The integration is intended to help data center operators increase bandwidth while reducing power use as AI clusters grow. The funding reflects growing investor interest in companies supplying the networking, memory, cooling and connectivity technology required to support AI infrastructure. Ayar Labs competes with optical networking companies including Celestial AI, Lumentum and Coherent. Disclosure: This article was edited by Editorial Team. For more information on how Crypto Briefing create and review content, see its Editorial Policy.

American Bazaar, Inc.
Jun 15th, 2026
Sejal Patel Daswani to oversee Ayar Labs' people strategy.

Sejal Patel Daswani to oversee Ayar Labs' people strategy. By Arun Kumar June 15, 2026 3 Mins Read Ayar Labs, a leading co-packaged optics (CPO) solutions for AI scale-up, has named high impact operations Indian American executive Sejal Patel Daswani as Chief People and Operations Officer. In this newly created role, Daswani will oversee Ayar Labs' people strategy as well as operations as the company continues to expand globally and advance its technology to meet hyperscaler deployment requirements, the San Jose, California based company announced. Daswani brings more than 20 years of leadership experience across people, operations and corporate innovation in the technology, cleantech and software industries, according to a company release. She has led large-scale global growth initiatives, built high-performing teams and supported companies through major operational inflection points. At Ayar Labs, Daswani will focus on building the people, systems and operating discipline needed for the company's next stage of growth. Her priorities include scaling global operations, strengthening talent and organizational infrastructure, and integrating AI into business operations as the company prepares to bring its technology to market at scale. "Sejal stood out immediately for her ability to connect company strategy with the people, systems and operating model required to scale," said Mark Wade, CEO and co-founder of Ayar Labs. "That is exactly what Ayar Labs needs as we move from breakthrough innovation to commercial scale and expand our global operations." "Solving the AI infrastructure bottleneck requires a rigorous operating model to match world-class innovation. I am thrilled to join Ayar Labs at this critical inflection point," Daswani said. "I look forward to scaling our global workforce and building the disciplined operational framework needed for our next phase of hyper-growth." Daswani most recently served as Chief People Officer at Deputy, a global HR technology software company, where she led global people strategy and guided future-of-work initiatives. Previously, she served as Chief Human Resources Officer at Sunrun, where she supported the company's rapid growth from 4,000 to 14,000 employees and played a leadership role in the $3.2 billion acquisition of Vivint Solar. She has held senior leadership roles at Visa and Pfizer, and currently serves as an advisor to SemperVirens Venture Capital, PeopleTech Partners and Kindred Minds. Daswani holds a dual MBA/MPA from MIT and Harvard University, as well as degrees in Biology and International Affairs from Columbia University. The appointment comes as momentum accelerates to bring co-packaged optics (CPO) to AI infrastructure, including Ayar Labs recently joining NVIDIA's NVLink Fusion ecosystem and its partnership with Wiwynn to bring CPO to rack-scale AI systems. In her combined people and operations role, Daswani will help scale teams, systems and execution across global markets. Ayar Labs is rapidly expanding its engineering and operations teams to meet the immediate demand for co-packaged optics.

Business Wire
Jun 10th, 2026
Ayar Labs hires Sejal Daswani as chief people and operations officer to scale AI optics tech

Ayar Labs, a leader in co-packaged optics solutions for AI infrastructure, has appointed Sejal Daswani as Chief People and Operations Officer. In this newly created role, Daswani will oversee people strategy and operations as the company expands globally and prepares for hyperscaler deployment. Daswani brings over 20 years of leadership experience across technology, cleantech and software industries. Most recently, she served as Chief People Officer at Deputy and previously held the role of Chief Human Resources Officer at Sunrun, where she supported growth from 4,000 to 14,000 employees and led people strategy during the $3.2 billion acquisition of Vivint Solar. The appointment follows Ayar Labs' recent partnership with Wiwynn and joining NVIDIA's NVLink Fusion ecosystem as the company scales its co-packaged optics technology.

FlipIt Money
May 29th, 2026
Nvidia invests $6.5B in photonics tech to bypass AI bottlenecks

Nvidia has invested at least $6.5 billion in photonics technology companies over three months to address AI deployment bottlenecks. The chipmaker put $2 billion each into Lumentum and Coherent, $500 million into Corning, and participated in Ayer Labs' $500 million funding round. Photonics uses light rather than electricity for data transfer, offering greater efficiency and lower energy consumption. The substantial investment reflects Nvidia's strategy to overcome infrastructure constraints limiting AI system rollout.

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