Salience Labs Raises $125M for Optical AI Switches, Then Expands in California
Salience Labs has secured an oversubscribed $125 million Series B, led by Bullhound Capital, with AMD Ventures, Intel Capital, and the British Business Bank also participating. The Oxfordshire-based company plans to utilize this funding to scale manufacturing and establish a second West Coast office.
Background:
The company's research is rooted in over a decade of collaboration between the University of Oxford and the University of Munster, with some funding provided by the British state. The expansion into California underscores the growing significance of optical circuit switching in AI data centers.
Key Points:
- Technology: Salience Labs focuses on developing all-optical switches, eliminating the need for electrical conversion, thus reducing latency and power consumption.
- Funding Details: The round exceeded expectations, with notable investors including AMD Ventures, Intel Capital, SBI Group, Hudson River Trading, and the British Business Bank.
- Competitors: A British rival, Oriole Networks, is also making strides in this field, with a deployed platform at the UK government’s ARIA lab.
- Market Potential: The global market for AI back-end network switches is projected to reach a staggering $1 trillion between 2026 and 2030, per Dell'Oro.
- Global Trends: Similar to PhotonDelta, which established a Silicon Valley hub in 2024, Salience Labs is expanding its presence in the US, reflecting a growing emphasis on international collaboration in the photonics sector.
As noted by the technology secretary, the UK is actively pursuing measures to support its AI chip industry and prevent talent and technology from flowing abroad.