Ayar Labs Raises $650M to Kill Copper Interconnects

Ayar Labs has extended its Series E funding round to $650 million after securing an additional $150 million from an unnamed investor, bringing its total outside funding to over $1 billion. The startup's backers include Nvidia, AMD, MediaTek, and Taiwanese data center firm Wiwynn. The company is developing optical interconnect technology to replace copper cables in AI data centers, which suffer from distance limitations, high power consumption, and overheating. Its TeraPHY product aims to link larger GPU clusters more efficiently, with CEO Mark Wade targeting mass market readiness by early 2028.