Nvidia, AMD and Intel Invest in Startup Bringing Light to Chips

Ayar Labs Inc., which specializes in using light to transfer data between chips, scored investment from the three biggest US semiconductor designers as the industry pursues more efficient AI processing.

The San Jose, California-based company said it raised $155 million from Nvidia Corp., AMD Ventures and Intel Capital in a funding round led by Advent Global Opportunities and Light Street Capital. With this investment, Ayar Labs’ valuation exceeded $1 billion, co-founder and Chief Executive Officer Mark Wade told Bloomberg News.

The artificial intelligence boom has been a power-hungry and expensive venture to fund. The technology enabling it, primarily ...