Teramount raises $50M to advance optical connectivity solutions for AI

Teramount, an Israel-based provider of scalable fiber-to-chip interconnect solutions for AI, data centers and advanced computing, has raised USD 50 million in financing led by new investor Koch Disruptive Technologies (KDT). Existing investors Grove Ventures and several new strategic investors, including AMD Ventures, Hitachi Ventures, Samsung Catalyst Fund and Wistron, joined the round, Teramount said in a media release.

AI is driving exponential infrastructure growth, pushing the limits of data movement speed and efficiency. To meet these escalating performance and power demands, the industry must adopt advanced optical interconnects to pass data between compute and networking components. Teramount makes this possible with their TeraVerse solution: a detachable, serviceable connector that links optical fibers coming from outside the rack to the silicon photonics chips inside Co-Packaged Optics (CPO) systems, the company said.

“This investment, which brings together strong financial and strategic investors, representing important parts of the optical connectivity ecosystem, is a testament to the potential of our technology in AI infrastructure and other high-performance applications,” said Hesham Taha, CEO and co-founder of Teramount. “We are grateful to our new and existing investors for their support.” 

“Optical interconnects are critical components of the future of AI infrastructure, and Teramount is poised to be a leading supplier of these solutions,” said Isaac Sigron, managing director at KDT Israel, who will join Teramount’s board of directors. “We are very impressed with the position Teramount has established in the market and its partnerships with key industry players.”

The funding will enable Teramount to grow its team and scale to volume production, ahead of the market adoption of CPO (co-packaged optics).