Celestial AI raises $255 million to deploy photonic interconnects for data center AI infrastructure

Celestial AI has announced the final close of its $255 million Series C1 funding round, bringing its total funding to $520 million. The round includes new strategic investors VentureTech Alliance and Samsung Catalyst Fund, alongside partnerships with leading semiconductor foundries such as TSMC. Celestial AI reports that this investment will accelerate the commercial deployment of its Photonic Fabric technology, targeting the needs of modern data center AI infrastructure.

According to Celestial AI, the Photonic Fabric platform enables scalable optical networking, providing data movement from chip-to-chip within processor packages up to server-to-server across datacenter racks. This optical interconnect technology is designed to address bandwidth, latency, and energy efficiency challenges for hyperscale AI deployments, where copper-based interconnects are increasingly seen as a limiting factor.

The company says its Photonic Fabric supports volume manufacturing and aims to strengthen partnerships throughout the semiconductor supply chain as demand increases for next-generation AI computing systems. Celestial AI specifically highlights applications in data center architectures that need to scale processor-to-processor communication while improving power consumption metrics.

David Lazovsky, CEO of Celestial AI, stated, “The largest global infrastructure investment in history is currently underway as companies race to build AI computing capacity. The AI industry is hitting a fundamental wall with data movement between AI processors over copper wires. Today’s copper-based interconnects simply cannot efficiently scale to serve the millions of processors that next-generation AI will require,” said Lazovsky. “We find ourselves uniquely positioned with the right technology, at exactly the right time to partner with hyperscale customers and the greater industry ecosystem to lead this transition to light-speed data transfer. Our Photonic Fabric represents a generational leap in bandwidth, low latency and power efficiency designed to deliver the kind of breakthrough that redefines what’s possible in AI. We are pleased to add VentureTech Alliance as a strategic investor to further strengthen our supply chain partnerships.”

Kai Tsang, Managing Partner at VentureTech Alliance, added, “The AI industry is at a critical inflection point where traditional electrical interconnects simply cannot support the scale and efficiency demands of next-generation models,” said Tsang. “Celestial AI’s Photonic Fabric represents the fundamental infrastructure shift the industry needs to enable system architectures that can scale processors while dramatically reducing power consumption. We are pleased to take part in this shift where Celestial AI will help the semiconductor ecosystem accelerate establishing optical interconnects as the new standard for AI computing.”

Celestial AI reports that existing investors include Fidelity Management & Research Company, BlackRock, Maverick Silicon, Tiger Global Management, Koch Disruptive Technologies, Temasek, Xora Innovation, Porsche Automobil Holding SE, The Engine Ventures, and the United States Innovative Technology Fund, as well as strategic investors AMD Ventures, IMEC XPand, and Penguin Solutions.

Source: Celestial AI

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