CPO startup Ayar Labs raises 2026 funding to US$650 million, adds Wiwynn as investor

Ayar Labs’ $650 million funding round underscores the transition of CPO technology from R&D to commercial scale-up. This development accelerates the adoption of optical interconnects in data centers, pressuring upstream sectors like optical modules, packaging substrates, and silicon photonics to evolve rapidly. The company’s manufacturing ramp will intensify competitive pressure on existing players, especially in bandwidth density and power efficiency. From a policy perspective, ongoing U.S. export controls on advanced technologies may hinder supply chain integration with China, raising operational costs. Competitors such as NeoPhotonics and Intel are likely to respond with accelerated in-house development or strategic acquisitions. Over the next 12–24 months, CPO is poised to become a core infrastructure element in AI data centers, driving rapid innovation in silicon photonics and photonic integration, thus establishing new technological moats.