
Teramount, a startup that builds fiber-to-chip connections for AI infrastructure chips, has raised $50 million in a Series A funding round. The company is working on technology that helps connect fiber optics directly to chips, which is important for faster and more efficient AI systems.
Hesham Taha and Abraham Israel, both PhDs in applied physics and graduates of the Hebrew University founded Teramount. The funding round was led by Koch Disruptive Technologies (KDT) and included support from previous investors like Grove Ventures and new strategic partners such as AMD Ventures, Hitachi Ventures, Samsung Catalyst Fund, and Wistron.
The Series A round includes $41 million in new funding, plus $9 million from a previous SAFE (Simple Agreement for Future Equity) round that was raised about a year ago. That earlier amount has now been converted into equity as part of this round, with support from the same group of investors.
CEO and co-founder Hesham Taha said, “I earned my PhD in applied physics in Jerusalem, where I met Avi Israel. We’ve been friends since school. In 2013, we began our journey, and in 2015, we launched the company with a long-term vision: to connect chips using light, not electricity, for faster and more efficient communication.”
Teramount’s vision is more important than ever in the AI era, where chips need to share data quickly and efficiently. Fast, low-power data transfer is key for AI systems to perform well.
According to Taha, Teramount’s technology can make data transfer 100 times faster and cut power use by 70% compared to older electrical connection methods.
Teramount’s main innovation is in optical chip-to-chip connections. This technology is designed for use in AI processors, data centers, high-performance computers, communication networks, and sensors.
The company has created a special system called “PhotonicPlug” and “PhotonicBump”, which makes it easier to connect optical fibers directly to chips. This technology is protected by multiple patents and allows for smooth, high-speed data transfer.
“We’ve managed to introduce critical building blocks into the semiconductor industry and are now engaged with several top-tier customers,” Taha said. “We’re already shipping in small volumes, and for the first time, AI processors are being connected with optical links using our technology.”
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