Intel and Nvidia are reportedly exploring the acquisition of Israeli startup DustPhotonics. The potential deal is valued in the hundreds of millions of dollars.
DustPhotonics specializes in silicon photonics technology that integrates optical components directly onto chips. These components enable data transmission speeds of up to 1.6 Tbps.
The technology addresses critical data transfer bottlenecks in hyperscale data centers running massive AI workloads. This shift toward optical interconnects occurs as traditional electrical connections reach their physical limits.
An acquisition would secure a strategic advantage in the high-performance AI chip market. Both companies seek to improve power efficiency and scaling for complex AI systems.