Ayar Labs Blog

At Ayar Labs, we believe that the future of AI infrastructure will be shaped not by any single company, but by a robust ecosystem of partners working together to push the boundaries of what’s possible.

The TeraPHY optical engine is the industry’s first Universal Chiplet Interconnect Express (UCIe) optical interconnect chiplet that can deliver 8 Tbps of bandwidth. Built to maximize AI scale-up architecture performance and efficiency, it reduces latency and power consumption while overcoming the bandwidth and reach limitations of traditional copper interconnects.

Optical interconnects in the data center took center stage at NVIDIA’s GTC 2025 conference in March when Jensen Huang announced two network switches incorporating co-packaged optics (CPO), which combine photonics and electronics in a single package for higher performance and efficiency.

The semiconductor industry is buzzing with discussions around the challenges of scaling AI infrastructure. One topic of particular focus is the limitations of copper interconnects and the promising potential of silicon photonics, optical I/O in particular, to meet growing bandwidth demands.

At Ayar Labs, we are deeply driven by the scale of impact that optical connectivity can deliver for the most critical technology challenge of our era: large-scale AI.

UCIe combined with optical I/O enable AI scale-up and memory disaggregation by providing reduced latency, increased bandwidth, and interoperability across different vendors’ chiplets.