Ayar Labs

Ayar Labs develops co-packaged optics (CPO) for AI infrastructure, replacing electrical copper interconnect inside and between systems with optical connectivity. Its CPO solutions are designed to connect thousands of GPUs across multiple racks into a single unified cluster over an optical fabric, targeting the bandwidth density, latency and power-efficiency requirements of hyperscale AI workloads.

The product line centers on two components. The TeraPHY optical engine integrates directly into existing chip package architectures and provides protocol-agnostic, high-bandwidth optical I/O; the company states it uses the standard form factor, manufacturing and packaging flows already used by major XPU and switch vendors to ease integration into customer designs, and that it has been validated across multiple product generations with verification and reliability testing. The SuperNova remote light source is a compact, low-power external laser source in the industry-standard ELSFP form factor that pairs with TeraPHY to form a complete optically connected rack-scale solution.

Business model

Ayar Labs supplies silicon photonics hardware components — optical engines and remote light sources — to be integrated into customers' chip packages, systems and racks, positioning its parts within existing XPU, switch and rack manufacturing flows.

Traction

The company reports its TeraPHY optical engine has passed testing for AI scale-up at volume, is validated across multiple generations, and that its Series E funding is directed at accelerating volume production; it was reported valued at $3.8 billion.

Latest developments

Recent announcements include the close of a $500 million Series E to accelerate volume production of co-packaged optics, joining the NVIDIA NVLink Fusion ecosystem for rack-scale AI infrastructure, the appointment of Sejal Patel Daswani as Chief People and Operations Officer, and planned showcasing of CPO innovations with Wiwynn and ecosystem partners at Computex 2026.