Digital signal processor technology for artificial intelligence infrastructure company Celero Communications Inc. announced today that it has raised $140 million in new funding to address a rapidly expanding market for coherent optical connectivity.
Founded in 2024, Celero is focused on solving one of the biggest bottlenecks in modern AI infrastructure: the need for massive, energy-efficient data movement between AI accelerators and across hyperscale data centers.
The problem the company is addressing is one whereby, as AI workloads scale from thousands to millions of interconnected processors, traditional electrical interconnects struggle with bandwidth, latency and power constraints. Celero pitches itself as the company building the connective layer that allows large AI systems to operate as a unified whole.
Celero’s coherent DSP technology is designed specifically for AI-driven optical networking with architecture that is optimized for the extremely high bandwidth, low-latency and power-sensitive needs of AI clusters. The technology lets AI accelerators communicate more efficiently over optical fiber, reducing the energy cost of moving data between racks, clusters and geographically distributed data centers.
Key to the offering is a focus on short-reach and medium-reach optical links, where current networking solutions are hitting physical and cost limits. Celero’s DSPs enable coherent optics to be used at shorter distances, something previously considered impractical due to cost and power requirements.
The DSP architecture is also built to support terabit-scale data rates while keeping power consumption low enough to be viable inside dense AI clusters. Doing so allows Celero’s technology to integrate directly into the hardware that cloud providers, model labs and enterprise AI workloads rely on.
“As AI models and clusters grow exponentially, today’s data centers face severe limits in bandwidth, cost and energy efficiency,” explained co-founder and Chief Executive Nariman Yousefi. “Our coherent DSP technology delivers the optical performance and scalability needed to remove these bottlenecks, establishing the foundation for large-scale, accelerated computing networks.”
Celero’s founders, including Yousefi and Oscar Agazzi, are former senior executives at Marvell Technology Inc., Inphi, Broadcom Inc. and ClariPhy Communications Inc. who have shipped multiple generations of DSPs and networking integrated circuit solutions.
The $140 million in new funding came across two rounds: a Series A round led by Sutter Hill Ventures LP with participation from Valor Equity Partners LP, Atreides Management LP and Maverick Silicon and Series B round that was led by Capital G LP, Alphabet Inc.’s independent growth fund.
“Amid the explosive growth of artificial intelligence, Celero is uniquely positioned to meet the soaring demands of AI infrastructure,” said James Luo, general partner at CapitalG and member of the Celero board. “The experienced leadership and differentiated architecture at Celero position the company to lead in AI-driven network innovation.”
Image: SiliconANGLE/Ideogram
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