OpenLight, a rising force in the field of custom photonic application-specific integrated circuits (PASICs), has officially closed its oversubscribed $34 million Series A funding round, marking a pivotal moment in its journey from research-driven subsidiary to a high-velocity, venture-backed technology leader. Co-led by Xora Innovation and Capricorn Investment Group, with participation from Mayfield, Juniper Networks (now part of HPE), Lam Capital, New Legacy Ventures, and K2 Access, the round underscores growing investor confidence in the critical role that integrated photonics will play in powering the next generation of artificial intelligence (AI) datacentres, telecommunications, and beyond. The funding represents more than just capital—it signals a transition. OpenLight, formerly a Synopsys subsidiary, is now fully positioned as an independent company designed to capture and shape a market that is rapidly expanding due to the urgent demand for faster, more energy-efficient data movement. As AI workloads surge, traditional electrical interconnects face scalability and power limitations. Optical solutions, particularly those built on heterogeneous integration of indium phosphide and silicon photonics, are increasingly seen as the answer. OpenLight is uniquely positioned to capitalize on this shift with its proprietary Process Design Kit (PDK) and a portfolio of more than 360 patents. Why photonics is gaining traction in AI and datacentre infrastructure The rise of AI and machine learning has fundamentally changed datacentre requirements. Models with billions—or even trillions—of parameters generate unprecedented levels of data that need to be transmitted, processed, and stored with ultra-low latency. Electrical interconnects, while effective in previous generations of computing, struggle to keep up without consuming disproportionate amounts of energy. Optical interconnects, leveraging light instead of electricity, provide orders-of-magnitude improvements in bandwidth and efficiency. This is where OpenLight’s approach shines. By enabling the heterogeneous integration of indium phosphide with silicon photonics, the company can embed active components such as lasers, modulators, amplifiers, and detectors directly into silicon. This eliminates the need for discrete optical components, reduces system complexity, and accelerates time-to-market for customers building advanced photonic solutions. Already, more than 20 companies are using OpenLight’s PDK to design and fabricate PASICs across diverse applications, from AI networking to automotive sensing, IoT, healthcare, and even quantum computing. From PDK to production: a validated foundry pathway One of OpenLight’s strongest differentiators is the validation of its PDK at Tower Semiconductor, a leading photonics foundry. This ensures that designs created with OpenLight’s toolkit are production-ready from day one, reducing costly and time-consuming iterations. The company’s library of passive and active components already includes critical building blocks for high-bandwidth communications, and with the new funding, OpenLight plans to expand its portfolio even further. Among its upcoming priorities are enhancing its 400G modulators and advancing indium phosphide-based on-chip laser technologies. Additionally, OpenLight is ramping up development of standard-based reference photonic integrated circuits (PICs) at 1.6T and 3.2T, aimed at giving customers flexible, high-performance options for scaling their architectures. These efforts are crucial as datacentre operators and AI infrastructure providers look for scalable solutions to keep pace with explosive demand. Strategic significance of the funding round Adam Carter, CEO of OpenLight, emphasized that the round marks the beginning of a new chapter: “With this strong syndicate of investors, we can push the boundaries of innovation and deliver transformative solutions to our customers. This funding will allow us to scale our operations, deepen our R&D efforts, and bring our groundbreaking products to market faster.” Investor sentiment mirrors this conviction. Phil Inagaki, managing partner at Xora, described heterogeneous integration as “one of the foundational capabilities” that will unlock exponential growth for photonics. Dipender Saluja of Capricorn’s Technology Impact Funds underscored the critical role of optical connectivity in AI datacentres, highlighting how OpenLight’s open PDKs, team expertise, and foundry partnerships position it uniquely to meet industry needs. In essence, the Series A funding does not merely extend OpenLight’s runway; it validates the company’s business model, strengthens its ecosystem partnerships, and accelerates the timeline for scaling up production. As AI networks evolve, OpenLight’s ability to enable high-performance, energy-efficient photonic chips could become a cornerstone of the industry. At the heart of OpenLight’s technological promise is heterogeneous integration, a method of combining multiple material systems—most notably indium phosphide (InP) and silicon photonics—onto a single platform. Traditionally, optical systems required separate lasers, modulators, and detectors manufactured on different substrates, which then had to be assembled in a painstaking and expensive process. Heterogeneous integration eliminates much of this overhead by embedding these active components directly into the silicon photonics platform. For datacentre and AI-scale workloads, this approach is a game-changer. Instead of assembling a puzzle of discrete optical components, engineers can design a single photonic application-specific integrated circuit (PASIC) that integrates everything they need. The result is smaller form factors, lower costs, higher yields, and greater reliability—all while meeting the staggering bandwidth demands of modern networks. The OpenLight Process Design Kit (PDK) provides the building blocks for this vision. By offering a library of validated active and passive components, from lasers and modulators to detectors and amplifiers, the PDK allows customers to accelerate product development cycles. Designs can move from concept to fabrication more quickly, significantly reducing the barriers to entry for companies that want to leverage photonic integration but lack the deep expertise or resources to build such systems from scratch. Heterogeneous integration also opens the door to new levels of energy efficiency. As the carbon footprint of hyperscale datacentres comes under greater scrutiny, power-hungry interconnects have become a bottleneck. Photonics dramatically reduces power consumption for data transmission, enabling operators to support AI workloads while aligning with sustainability goals. With governments and corporations alike pushing for greener technology, OpenLight’s approach is well timed. The competitive landscape in integrated photonics The integrated photonics market is rapidly becoming one of the most hotly contested spaces in the semiconductor ecosystem. Established giants like Intel, Cisco, and Nvidia are making moves in optical interconnects, while specialized startups and research-driven ventures are racing to carve out niches. The global photonics IC market, estimated at $12 billion in 2024, is projected to grow at a double-digit CAGR through the end of the decade, driven by AI, 5G, and cloud adoption. OpenLight distinguishes itself with its validated PDK and robust patent portfolio. More than 360 patents cover not only the PDK but also the manufacturing of heterogeneously integrated III-V photonics, creating a defensible moat against competitors. While other companies may focus narrowly on either passive silicon photonics or discrete optical modules, OpenLight offers a platform approach that allows customers to design custom PASICs using proven building blocks. The company’s foundry partnership with Tower Semiconductor adds another strategic advantage. Foundry readiness is often the Achilles’ heel of emerging photonic ventures, but OpenLight’s customers benefit from a production-ready environment from the outset. This reduces risk, accelerates prototyping, and increases the likelihood of successful high-volume production—a critical differentiator in a market where time-to-market can define winners and losers. Investor backing also reinforces OpenLight’s positioning. The involvement of Capricorn, Xora, and strategic investors like Juniper Networks provides both financial and ecosystem support. These relationships can help OpenLight scale its operations faster, forge commercial partnerships, and gain early access to key markets in AI networking, telecom, and cloud infrastructure. Beyond datacentres: a spectrum of applications While much of the immediate excitement around OpenLight’s technology comes from its role in enabling AI-scale datacentre networks, the implications of heterogeneous photonic integration extend well beyond. 1. Telecommunications: With 5G rollouts still expanding globally and early work on 6G already underway, the need for higher-capacity, lower-latency optical networks is only intensifying. Integrated photonics could play a pivotal role in cost-effectively scaling network backhaul and core infrastructure. 2. Automotive and mobility: Lidar, advanced driver assistance systems (ADAS), and autonomous vehicle platforms all rely on optical sensing. OpenLight’s PDK components can be adapted to build compact, energy-efficient solutions that meet the rigorous demands of automotive environments. 3. Healthcare: Optical technologies are already used in imaging, diagnostics, and sensing. Integrated photonics could make devices smaller, more affordable, and more accessible for hospitals, clinics, and even consumer healthcare products. 4. Industrial and IoT sensing: The growth of connected devices and industrial automation calls for sensors that are both sensitive and scalable. Photonic integration allows for cost-efficient sensing platforms with wide deployment potential. 5. Quantum computing: Perhaps the most forward-looking application, quantum computing requires precise photonic components for qubit control and error correction. OpenLight’s heterogeneously integrated approach may provide the stability and scalability necessary to advance this emerging field. This breadth of applications gives OpenLight resilience against the cyclicality of any single market segment. By serving datacentre operators, telecom providers, automakers, and healthcare innovators, the company can diversify revenue streams while continuing to scale its technology. Scaling for the next 12 months With its Series A funding secured, OpenLight is not resting on its laurels. Over the next 12 months, the company plans to expand its PDK library, adding new active and passive components to stay ahead of customer needs. The roadmap includes advanced 400G modulators, indium phosphide on-chip lasers, and standard-based reference PICs at 1.6T and 3.2T. These additions are designed to give customers maximum flexibility and performance while simplifying their design processes. Equally important is OpenLight’s commitment to scaling its team. As more customers transition from design to volume production, the company will need to provide hands-on support, engineering expertise, and collaborative partnerships. Talent acquisition will therefore be a major focus, with the goal of ensuring that OpenLight can meet the demands of a growing global customer base.