No financials were disclosed, however, the investment will see NTT group deepen its collaboration with Ayar Labs to accelerate practical applications of optical I/O solutions.
NTT’s funds will support the startup’s technology development efforts and come directly off the back of its $155 million series D round.
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Based in San Jose, California, Ayar Labs is attempting to develop optical interconnect solutions capable of moving data “at the speed of AI”.
The startup contends that the increased data transmission demands brought on by data centres and AI require faster communication speeds.
Ayar Labs is working to apply photonics — one of Datacloud’s tech trends for 2025 — to solve the solution, integrating optical components directly onto silicon substrates.
By using light to transmit data over electrons to process and transmit data, the startup’s hardware can fully maximise compute efficiency and performance while reducing latency and power consumption.
The startup claims its optical I/O tech increased bandwidth five to 10 times, energy efficiency gains of four to eight times, and latency reductions to one-tenth of current levels.
NTT’s investment in Ayar Labs aligns with its ‘IOWN Initiative’ with the telco attempting to develop next-gen IT infrastructure based on optical technology.
“Together, we aim to drive advancements in optical I/O technologies, accelerate practical applications of innovative solutions, and foster the creation of new value in the field,” an NTT statement reads.
Aside from NTT Docomo, Ayar Labs counts backers including Nvidia, as well as venture arms of AMD, Intel, and 3M joining its recent funding round.
Earlier backers include GlobalFoundries, Applied Ventures, and Lockheed Martin Ventures, among others.
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