Celero Communications, a developer of advanced coherent DSP technology for AI infrastructure, has raised $275 million in a Series C funding round. The financing values the company at more than $3 billion and brings its total capital raised to $415 million. The announcement follows the successful validation of what the company describes as the industry's first 2nm coherent DSP silicon.
Series C Funding and Valuation
The Series C round was led by Atreides Management, Valor Equity Partners, and CapitalG, with continued participation from existing investors Sutter Hill Ventures and Maverick Silicon. As part of this investment, Gavin Baker, managing partner and chief investment officer at Atreides Management, will join Celero's board of directors. The new capital will accelerate Celero's product roadmap, research and development, and production readiness as demand grows for higher-bandwidth optical connectivity.
2nm Silicon Validation
Celero has completed validation of the industry's first 2nm coherent DSP silicon, including DSP processing and advanced analog technology. The company states that this milestone establishes a scalable foundation for AI optical interconnects capable of supporting speeds from 1.6T through 3.2T. The 2nm process enables high-speed, low-power coherent transmission while improving fiber efficiency and supporting higher-capacity networking platforms.
Market Demand for Coherent Connectivity
Global data centers are projected to require nearly $7 trillion in investment by 2030, with approximately $5.2 trillion tied to AI workloads, according to McKinsey & Company. AI infrastructure growth is making connectivity a critical bottleneck as traditional PAM4 optical architectures approach their practical limits in bandwidth density and fiber scalability. Coherent connectivity is emerging as the foundational technology for the next generation of scale-up, scale-out, and scale-across AI networks.
Executive and Investor Commentary
Nariman Yousefi, co-founder and chief executive officer of Celero Communications, said AI infrastructure is rapidly outgrowing the capabilities of traditional optical interconnect architectures. He added that the 2nm silicon validation demonstrates the bandwidth density, power efficiency, and scalability required for next-generation AI networks. Gavin Baker of Atreides Management described the transition from PAM4 to coherent as a fundamental shift in how scale-up, scale-out, and scale-across AI systems will be connected.
Strategic Industry Perspective
James Luo, general partner at CapitalG and member of the Celero board of directors, said the next generation of AI compute will depend on scaling connectivity across increasingly large accelerator clusters. He noted that Celero's breakthrough 2nm coherent DSP technology provides the essential optical foundation for AI infrastructure to scale up and across massive data centers. The investment underscores investor confidence in coherent optics as a critical enabler for future AI networking.
Company Background
Celero Communications, founded in 2024 by industry veterans from Marvell, Inphi, Broadcom, and ClariPhy, develops advanced coherent DSP solutions for high-bandwidth, low-power optical connectivity. The company combines deep expertise in analog design, digital signal processing, and system architecture to help data centers scale up and scale across large AI networks. It is headquartered in Irvine, California, with additional design centers in Canada and Argentina.
The Series C investment and the 2nm coherent DSP milestone underscore the accelerating shift toward coherent optics in AI data center infrastructure. Celero's technology targets the bandwidth and power constraints that are becoming critical as hyperscale clusters and cloud networks scale. With new capital and strengthened board leadership, the company is positioned to advance its product roadmap and production readiness for the next generation of AI connectivity.