Optical Chip Startup Lands $58M to Speed Up AI

A California startup just grabbed $58 million to build chips that use light instead of electricity. The twist? They might solve one of AI's biggest headaches. nEye Systems creates optical circuit switches that shuffle data between AI chips using photons.

Optical Chip Startup Lands $58M to Speed Up AI

The technology slashes energy use and lets data centers reconfigure their setup on the fly. It's like giving a highway system the ability to redraw its roads based on traffic patterns.

Google already proved this works. They built a similar system that outperformed Nvidia's AI computers. But Google kept their toys to themselves. nEye wants everyone to have them.

The startup has working prototypes and plans to ship test chips next year. Their tech isn't just for AI - traditional data centers could benefit too. That's caught the attention of some heavy hitters. Microsoft's M12, Micron, and even Nvidia have thrown money into the pot. Total funding now sits at $72.5 million.

CapitalG, Alphabet's growth fund, led this round. James Luo, their general partner, isn't worried about putting all his chips on AI. "The beauty of it works for both models," he says, referring to AI and traditional computing.

Why this matters:

  • While tech giants hoard their breakthroughs, nEye is democratizing optical computing. It's like Tesla releasing their patents - but for data centers
  • As AI keeps eating electricity like candy, optical chips might be the diet plan we need. Think LED bulbs versus incandescents, but for computing

Read on, my dear:

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