Photon Bridge raises €10M to scale lasers for AI data centres

Eindhoven-based Photon Bridge has raised €10 million to scale production of laser sources for optical interconnects in AI data centres. The round was co-led by Amadeus APEX Technology Fund and 360 Capital, with participation from existing backers Innovation Industries, Faber, and Brabant Development Agency.

The startup, formerly known as Photon IP, is targeting a supply chain bottleneck emerging as AI clusters expand. Optical connections, integrated closer to processors, offer faster and more efficient data transfer than electrical alternatives, but the current laser supply chain was built for telecom volumes rather than the millions of units AI infrastructure will soon require.

Photon Bridge’s approach involves distributing optical power across multiple lower-power semiconductor lasers. The company argues this method improves reliability and production efficiency. Its platform targets high optical power per wavelength and compatibility with multiple manufacturing partners.

The €10 million round follows a €4.75 million seed round announced earlier in 2025. Investors have framed the challenge as part of a broader shift in computing infrastructure, where traditional components must adapt to new scale and performance demands.

Photon Bridge was founded in 2020 by Rui Santos and Xaveer Leijtens. In September 2025, the company rebranded and appointed Paul Marchal as CEO. Leadership has emphasized the growing complexity of AI systems, where data transfer between processors is becoming a critical performance constraint. The company aims to use the new funding to advance product development, with plans to begin manufacturing preparations in the coming years.

When StartupReader first covered Photon Bridge in October 2025, the focus was on the technical potential of laser-based interconnects. This latest funding round suggests growing investor confidence in the company’s approach. The push toward co-packaged optics—integrating optical connectivity directly with AI chips—has been a recurring theme in infrastructure discussions, and Photon Bridge’s funding indicates the market may be moving toward practical implementation.

The startup’s focus on production efficiency stands out. As demand for lasers scales beyond traditional telecom volumes, maintaining quality at higher output becomes a key challenge. Photon Bridge’s architecture appears designed to address this, though its success will depend on execution.

The €10 million round also reflects broader investor interest in AI hardware. While much attention has focused on AI models and software, infrastructure bottlenecks like data transfer are increasingly seen as critical constraints. Photon Bridge’s funding follows other large bets in the space, positioning it alongside companies targeting different layers of the AI stack.

How quickly Photon Bridge can move from development to commercialization will be worth watching. The company’s timeline for scaling production will determine its ability to meet industry demand—or whether competitors might fill the gap first. Its progress in balancing volume and quality will be a key factor as the AI infrastructure race continues.

Sources: eu-startups.com