The next major bottleneck in artificial intelligence may not be computing power itself but the light required to connect thousands of processors. As AI data centres expand to accommodate increasingly powerful systems, optical communication is becoming essential for moving vast amounts of information between chips. Dutch photonics startup Photon Bridge is positioning itself to meet this demand, raising €10 million to develop laser technology designed for the manufacturing scale required by the AI industry.
€10 Million Funding to Accelerate Growth
Photon Bridge secured the funding in a round co led by new investors Amadeus APEX Technology Fund and 360 Capital. Existing investors Innovation Industries, Faber and Brabant Development Agency, also known as BOM, participated by increasing their investments.
The capital will support product development, customer qualification and preparations for large scale manufacturing. The company plans to deliver its first product samples in 2027 and prepare for volume production from 2028. It will also expand its team in Eindhoven, strengthening its operations as it moves towards commercialisation.
Why AI Needs More Lasers
Modern AI systems depend on large clusters of processors working together to train models and run complex applications. As these clusters grow, transferring data between processors becomes increasingly challenging.
Conventional electrical connections face limitations in bandwidth, energy efficiency and signal transmission over demanding distances. Optical connections use light to transfer information, offering the potential for greater data capacity and improved efficiency in advanced computing infrastructure.
This transition is accelerating with the development of co packaged optics, a technology that brings optical connectivity closer to the chips responsible for processing and transmitting data.
However, wider adoption creates a substantial supply challenge. The industry needs millions of laser sources to support the next generation of AI infrastructure, while traditional high power laser manufacturing has largely served telecommunications and subsea networks, which operate at lower volumes.
Industry forecasts from Omdia cited in the funding announcement suggest that annual shipments of AI accelerators for data centres could exceed 20 million by 2028.
A Different Approach to Laser Manufacturing
Photon Bridge is developing an architecture designed to make laser production more scalable. Instead of relying on a small number of increasingly powerful lasers, its technology combines and multiplexes light from multiple lower power semiconductor lasers.
This approach aims to reduce the manufacturing difficulties associated with high power density. Individual lasers operating at lower power densities can be less sensitive to certain manufacturing defects, potentially improving production yields and making large scale manufacturing more practical.
Manufacturing yield is particularly important when production volumes rise dramatically. Even a small proportion of defective components can become expensive when millions of units are required every year.
The company’s platform is designed to support high wavelength counts and deliver up to 40 milliwatts of optical power per wavelength per fibre. It is also designed to support manufacturing across multiple indium phosphide foundries, giving the company flexibility as demand grows.
Investors Back the Photonics Opportunity
Photon Bridge’s investors see laser manufacturing as an increasingly important part of the AI infrastructure supply chain.
As AI computing clusters become larger, bottlenecks are emerging beyond processors and memory, creating demand for technologies that can move data efficiently between components. Photon Bridge is targeting this opportunity by focusing on a critical component of optical connectivity.
Its strategy combines photonics engineering with an emphasis on manufacturing efficiency, aiming to bridge the gap between specialised laser production and semiconductor scale demand.
The Road to Commercial Production
The new funding marks an important step towards turning Photon Bridge’s technology into commercially deployable products. Its immediate priorities include refining its platform, validating performance with customers and establishing the manufacturing processes needed for higher volumes.
With initial samples planned for 2027 and volume manufacturing targeted for 2028, the company is working towards a market that could expand alongside AI data centre investment.
As the AI industry builds ever larger computing systems, the ability to connect processors efficiently will become increasingly important. Photon Bridge is betting that scalable laser manufacturing can help address this challenge and establish photonics as a core part of next generation AI infrastructure.
