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Optical interconnectivity startup raised a $250 million Series C1 round led by at a $2.5 billion valuation.

The fresh cash comes almost exactly a year after the company locked up a $175 million Series C led by 鈥檚 .

The Santa Clara, California-based startup鈥檚 photonic fabric platform helps separate compute and memory, making processing extensive AI faster and providing more energy-efficient computing.

The new round included participation from new investors including funds and accounts managed by , , and , as well as participation from existing investors including , , , Temasek鈥檚 fund, and .

Big dollars

Founded in 2020, Celestial AI has now raised more than $515 million, per the company

The company鈥檚 photonic fabric helps solve one of generative AI鈥檚 biggest issues 鈥� untangling compute power and memory to make the technology more efficient.

鈥淲ith the emergence of complex reasoning models and agentic AI, the requirements on AI infrastructure are compounding,鈥� said CEO in a . 鈥淐luster sizes must scale from a few AI processors in a server to tens of processors in a single rack and thousands of processors across multiple racks, all while relying on high-bandwidth, low-latency network connectivity to handle massive data transfers between processors.鈥�

Thanks to AI, chips seem to be the talk of tech right now. Just last month, 鈥� a startup developing analog in-memory-computing AI chips 鈥� raised a Series B of more than $100 million led by .

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