Celero Communications develops semiconductor technology for the optical networks used in AI infrastructure. Founded in 2024, the company makes digital signal processors, or DSPs, that help move large amounts of data through fiber optic networks. Its focus is the connections between increasingly large AI computing systems.
That problem is becoming more important as spending on AI data centers grows. McKinsey estimates that companies will need to invest about $5.2 trillion in data centers by 2030 to meet worldwide AI demand. Larger clusters of AI processors need to exchange more information, which puts additional pressure on the networks connecting them. The networks have to carry more data while keeping power use under control.
Celero has raised $275 million in Series C funding. Atreides Management, Valor Equity Partners, and CapitalG led the round, while existing investors Sutter Hill Ventures and Maverick Silicon also participated. The financing brings Celero’s total capital raised to $415 million and values the company at more than $3 billion. Gavin Baker, Managing Partner and Chief Investment Officer at Atreides Management, will join Celero’s board as part of the financing.
AI data centers rely on large numbers of specialized processors that must exchange information quickly. As those systems grow, the equipment connecting processors, clusters, and data centers can become a constraint. Celero is working on coherent optical connectivity, which uses signal processing to send large amounts of data efficiently through fiber.
The company says traditional PAM4 optical architectures are approaching practical limits in bandwidth density and fiber scalability as AI systems expand. Celero is developing coherent technology for connections across individual AI clusters and larger data center environments. The goal is to carry more information through the available fiber.
Celero recently validated what it describes as the industry’s first 2 nanometer coherent DSP silicon with advanced analog technology. The company says its architecture provides a path from 1.6 terabit connectivity to next generation 3.2 terabit optical interconnects. According to Celero, the 2 nanometer process supports high speed, low power coherent transmission and improves fiber efficiency while allowing higher capacity networking systems.
“Networking is now growing faster than compute, and connectivity is one of the most critical challenges in scaling AI infrastructure,” said Gavin Baker, Managing Partner & Chief Investment Officer at Atreides Management. “The transition from PAM4 to coherent represents a fundamental shift in how the next generation of scale-up, scale-out and scale-across AI systems will be connected. Every data center will need coherent optics, no matter the accelerator or networking protocol. Celero was built for this transition, with the technology, team and execution track record to lead the coherent era.”
Celero plans to put the new capital toward its product roadmap, research and development, and production readiness. These areas are tied to the company’s effort to bring its coherent connectivity products to market as AI infrastructure requires greater bandwidth. Preparing the technology for production is one stated priority.
The financing will also support further product development. Celero is working toward technology that can support 3.2T optical interconnects, building on the 1.6T systems addressed by its current architecture. The company describes the design as a scalable foundation that can support both levels of connectivity.
That approach is closely linked to the company’s 2 nanometer silicon validation. Celero says the same architecture can support 1.6T solutions and the next generation of 3.2T AI optical interconnects. The funding gives the company additional resources for the development work and production preparation described in its roadmap.
Celero Communications was founded in 2024 by semiconductor and networking industry veterans, including CEO Nariman Yousefi and Oscar Agazzi. Members of its founding team previously worked at Marvell, Inphi, Broadcom, and ClariPhy. The company is headquartered in Irvine, California, and also operates design centers in Canada and Argentina.
Its main technology is a coherent DSP. A DSP is a specialized chip that processes the signals carrying information through a network. In coherent optical systems, that processing helps fiber networks transmit large amounts of data efficiently and make better use of available fiber capacity. The technology is designed for data movement.
Celero applies this technology to AI infrastructure. Its products are intended for connections across AI accelerator clusters and cloud data centers as computing systems increase in size. The company combines digital signal processing with analog technology and system architecture in its designs.
The 2 nanometer silicon validation is the company’s latest reported technical milestone. Celero says the design includes both DSP processing and advanced analog technology and is intended to support connectivity ranging from 1.6T to future 3.2T systems.
The Series C follows $140 million that Celero had already raised. In November 2025, the company announced a $100 million Series B led by CapitalG. Its earlier seed and Series A rounds totaled $40 million and were led by Sutter Hill Ventures, with participation from Valor Equity Partners, Atreides Management, Maverick Silicon, and other investors.
Several of those backers returned for the latest financing. Atreides Management and Valor Equity Partners joined CapitalG as lead investors in the $275 million Series C, while Sutter Hill Ventures and Maverick Silicon continued their participation. The round brings Celero’s total funding to $415 million.
CapitalG General Partner James Luo is already a member of Celero’s board. Gavin Baker of Atreides Management will now join him following the Series C financing. The new round values Celero at more than $3 billion, according to the company.
