Mountain View-based startup Lightmatter, valued at $4.4 billion, has introduced two cutting-edge technologies designed to improve connectivity between artificial intelligence (AI) chips. Unlike conventional electrical signal transmission, Lightmatter's approach relies on optical connections and silicon photonics, enabling data transfer through light. This innovation promises faster and more efficient communication between chips, addressing the growing demand for high-performance computing solutions in AI applications.
The company has unveiled two major products as part of this initiative. The first is the Interposer, a foundational material layer that facilitates seamless connections between AI chips placed on it. Manufactured by GlobalFoundries, this technology is expected to be released in 2025. The second product is the Chiplet, a compact tile that enhances the functionality of AI chips when placed on top of them. The Chiplet is set to be available in 2026.
Lightmatter's ambitious plans are backed by strong financial support. In October 2024, the company secured $400 million in a Series D funding round led by T. Rowe Price, with additional investments from Fidelity and Alphabet’s GV. This brought the company’s total funding to $850 million and significantly boosted its valuation. The funds are being utilized to manufacture and deploy photonic chips in partner data centers and to expand the company's workforce.
The integration of optical technologies in AI chip design has gained momentum across the industry. Major players like Advanced Micro Devices (AMD) have begun experimenting with optical technology alongside their processors. Nvidia has incorporated optical components into some of its networking chips, though CEO Jensen Huang has stated that the technology is not yet mature enough for widespread application across all chips. Meanwhile, STMicroelectronics, in collaboration with Amazon Web Services (AWS), has developed a new photonics chip for AI data centers. This chip, designed to enhance processing speed and reduce power consumption, is set for mass production in France.
Lightmatter's advancements in photonic technology mark a significant step forward in tackling the increasing demands of AI workloads. By leveraging silicon photonics, the company aims to provide solutions that enhance efficiency while lowering power consumption, a crucial factor in the future scalability of AI applications. As the industry continues to explore the potential of optical computing, Lightmatter's innovations position it as a key player in shaping the next generation of AI chip development.