Xscape Photonics said it has raised $37 million in additional Series A funding and launched FalconX, an External Laser Small Form-factor Pluggable (ELSFP) designed to emit up to eight wavelengths for optical links in AI data center networks. Xscape Photonics said the new funding brings its total Series A to $81 million.
The $37 million round was led by Addition, with participation from existing investors including IAG Capital Partners and NVIDIA, according to the company. Xscape Photonics said the investment builds on a $44 million Series A round it announced in 2024.
On the product side, Xscape Photonics is positioning FalconX as a fully redundant ELSFP “Comb laser module” in a pluggable form factor capable of generating eight wavelengths (colors). The company said FalconX is intended for “ultra-fast, high-capacity and low-power” optical data transmission and targets what it calls an “escape bandwidth” bottleneck in AI clusters.
Xscape Photonics said FalconX uses its proprietary CombX laser technology, which it described as generating multiple wavelengths of light on a single silicon photonics chip to enable multi-color optical interconnects in AI data center networks. The company also said FalconX delivers more than 1 W of optical power from a single pluggable laser module, and that its eight colors “can power multi-terabits-per-second of data bandwidth.”
Reliability is a central part of the FalconX pitch. Xscape Photonics said the failure of a single laser module can significantly impact an AI network, stalling workloads and increasing “token cost,” and it claims hyperscalers now demand “10 times fewer failures” at the laser level because of AI cluster growth. FalconX, the company said, includes built-in redundancy and “more reliable components” to meet those demands.
Xscape Photonics also said FalconX is designed to comply with industry MSA standards for scale-up and scale-out fabric links, and that it can be qualified in existing hyperscaler infrastructure.
CEO and co-founder Vivek Raghunathan framed the announcement around AI interconnect constraints: “Xscape Photonics is accelerating the development of its multi-color wavelength-division multiplexing (WDM) fabric solutions,” adding that FalconX is “capable of generating eight wavelengths of light, powering high-speed data movement to allow the entire data center to function as one giant GPU.”
The company tied FalconX to its ChromX roadmap, which it describes as “the industry’s first programmable multi-wavelength photonics platform” for custom AI data center fabrics. Xscape Photonics said it is targeting emissions of 16, 32, and ultimately 128 colors and beyond, and that in August 2025 it “successfully demonstrated functional, 16-color CombX prototypes” in collaboration with Tower Semiconductor. The company also said it launched the EagleX Laser Evaluation Kit for the ChromX platform in June 2025, and that customers can contact sales@xscapephotonics.com about sampling FalconX.
Source: Xscape Photonics
