Celero raises $275m to bring coherent optics inside AI data centres

Celero Communications raised $275 million in a Series C funding round led by Atreides Management, Valor Equity Partners, and CapitalG, valuing the chip startup at over $3 billion. The company develops advanced coherent digital signal processors for AI data center fiber optic communications, aiming to replace the current PAM4 technology to support growing AI cluster demands. Celero's chips use TSMC's 2nm process and promise higher data rates, though they are not yet shipping.