Teramount secures $50 million for optical connectivity for AI

The company is developing scalable fibre-to-chip interconnect solutions to address growing data transmission demands, and plans to use the funding to grow its team and scale to volume production, ahead of the market adoption of co-packaged optics

Teramount, a company developing scalable fibre-to-chip interconnect solutions for AI, datacentres and advanced computing, has announced it has raised $50 million in financing led by new investor Koch Disruptive Technologies (KDT). Existing investors Grove Ventures and several new strategic investors, including AMD Ventures, Hitachi Ventures, Samsung Catalyst Fund and Wistron, joined the round.

AI is driving exponential infrastructure growth, pushing the limits of data movement speed and efficiency. To meet these escalating performance and power demands, the industry must adopt advanced optical interconnects to pass data between compute and networking components. Teramount aims to make this possible with its TeraVerse solution: a detachable, serviceable connector that links optical fibres coming from outside the rack to the silicon photonics chips inside co-packaged optics (CPO) systems.

The company says it is rapidly emerging as the de facto industry standard for optical fibre to silicon interconnect solutions, partnering with companies in the ecosystem, including foundries, silicon and photonics companies, and outsourced assembly and test (OSAT) vendors.

“This investment, which brings together strong financial and strategic investors, representing important parts of the optical connectivity ecosystem, is a testament to the potential of our technology in AI infrastructure and other high-performance applications,” said Hesham Taha, CEO and co-founder of Teramount. “We are grateful to our new and existing investors for their support.”

Isaac Sigron, managing director at KDT Israel, who will join Teramount’s board of directors, added: “Optical interconnects are critical components of the future of AI infrastructure, and Teramount is poised to be a leading supplier of these solutions. We are very impressed with the position Teramount has established in the market and its partnerships with key industry players.”

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