Celero Communications Secures $140 Million to Solve AI Data Center Networking Bottlenecks with Optical and DSP Technology

Celero Communications, a startup specializing in cutting-edge coherent digital signal processor (DSP) and optical networking technologies, has secured $140 million in funding to address one of the biggest bottlenecks in AI infrastructure: efficient high-speed data transfer across sprawling AI compute clusters.

The rapid growth of AI models, now running billions to trillions of parameters, demands massive data movement between GPUs and custom AI accelerators. Traditional networking methods face escalating latency, bandwidth, and energy inefficiencies as hardware scales. Celero’s coherent DSP solutions drastically increase bandwidth, reduce latency, and improve power efficiency over optical links, seamlessly connecting AI chips across racks and data centers.

This latest funding round, including a $100 million Series B led by CapitalG, Alphabet’s independent growth fund, alongside investors such as Sutter Hill Ventures and Valor Equity Partners, will enable Celero to accelerate product development, scale manufacturing partnerships, and expand trials with top-tier hyperscale cloud providers.

Celero’s technology effectively tackles the physical and architectural challenges of AI networking, enabling data centers to scale AI clusters without linear increases in costs or complexity. This chip-level innovation is vital for sustaining the relentless growth of AI research and commercialization.

With this capital injection, Celero is positioned to become a key player in the evolving AI hardware ecosystem where compute, cooling, power, and networking integrate tightly to meet future demands.