Celero Communications Raises $275M as AI Chip Demand Grows

Celero Communications announced today it has closed a $275 million Series C funding round, which values the networking chip startup at over $3 billion. The investment was spearheaded by Atreides Management, Valor Equity Partners, and CapitalG, with participation from existing backers Sutter Hill Ventures and Maverick Silicon.

Headquartered in Irvine, California, Celero develops coherent DSP technology for AI infrastructure and has now raised $415 million in total capital. As part of the transaction, Gavin Baker, Managing Partner and CIO at Atreides Management, will join Celero's board of directors.

Celero also announced the successful validation of the industry's first 2nm coherent DSP silicon, covering DSP processing and advanced analog technology. This milestone underpins next-generation AI optical interconnects, enabling connectivity from 1.6T to 3.2T as hyperscale AI clusters and cloud data centers expand.

According to McKinsey & Company, global data centers will require nearly $7 trillion in investment by 2030, including roughly $5.2 trillion for AI workloads. Connectivity is becoming a critical bottleneck as AI infrastructure grows, driving conventional PAM4 optical architectures toward their limits in bandwidth density and fiber scalability.

The new funds will accelerate Celero's product roadmap, R&D investment, and readiness for production as demand intensifies for high-bandwidth, low-power optical connectivity in AI infrastructure. Founded in 2024 by industry veterans from Marvell, Inphi, Broadcom, and ClariPhy, the company has design centers in Canada and Argentina.

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