Leeds-based photonic computing firm Optalysys has successfully secured $30.9 million in a Series A extension funding round to advance its innovative processing technology. The investment, led by Northern Gritstone, will fuel the commercialization of its photonic chips and support a strategic expansion into the United States. This move positions the company to address the escalating computational demands of artificial intelligence and secure cloud infrastructure.
Pioneering a New Era of Computation
Optalysys is developing a novel approach that merges data movement and processing onto a single chip by combining silicon photonics with advanced digital technologies. This integrated design aims to overcome the performance and energy efficiency limitations inherent in conventional electronic computing systems. The company's goal is to deliver a significant leap in computational power for next-generation data centers.
The company's programmable, high-density computing layer is engineered to handle exceptionally demanding workloads, including generative AI and post-quantum algorithms. This technology is intended to become a core component of future cloud infrastructure, providing the necessary power for increasingly complex applications. Optalysys is focused on creating a scalable solution for the industry's most intensive computational challenges.
Enhancing Security with Advanced Encryption
A key application for Optalysys's technology is Fully Homomorphic Encryption (FHE), a groundbreaking security protocol that is gaining relevance in enterprise environments. FHE enables data to be processed and analyzed while remaining fully encrypted, eliminating vulnerabilities during computation. This capability offers a new standard for secure data handling in the cloud and beyond.
Early implementations of this advanced security feature are already deployed in the company's LightLocker™ Node servers. These systems represent the world's first dedicated hardware solution designed specifically for encrypted blockchain applications. The LightLocker platform demonstrates the practical application of Optalysys's technology in securing sensitive digital assets and transactions.
Strategic Investment Fuels Commercialization
The $30.9 million funding round was spearheaded by Northern Gritstone and saw significant participation from imec.xpand, Lingotto Horizon, and the UK government’s National Security Strategic Investment Fund (NSSIF). This diverse group of investors underscores the strategic importance and commercial potential of Optalysys's photonic computing platform. The capital injection provides a strong foundation for the company's next phase of growth.
Dr. Nick New, CEO and co-founder of Optalysys, described the current landscape as a "defining moment in the evolution of computing." He stated that the investment validates the immense opportunity ahead and the company's ability to execute its vision. The funding will enable Optalysys to enter new markets and accelerate its mission to make photonic computing a mainstream part of cloud infrastructure.
Targeting US Expansion and Talent
A significant portion of the new capital is allocated for the company's expansion into the United States. Optalysys plans to establish a presence within the country's vibrant photonics and semiconductor ecosystem to foster wider market adoption. This strategic move is designed to accelerate development and build key partnerships within a major international technology hub.
Co-founder and CTO Robert Todd highlighted that this expansion is a "natural next step" for the company. He noted that recent industry trends emphasize the critical role photonics can play in addressing the power consumption and processing bottlenecks of AI models. By expanding to the US, Optalysys aims to tap into the immense talent pool and established innovation networks, particularly in Silicon Valley.
This substantial $30.9 million investment marks a pivotal milestone for Optalysys, empowering the company to commercialize its groundbreaking photonic computing technology and establish a strategic foothold in the US market. As the demands of AI and large-scale data processing continue to grow, this development positions Optalysys at the forefront of a new wave of energy-efficient, high-performance computing. The backing from prominent investors signals strong confidence in photonics as a key solution for the future of cloud infrastructure.