Chip startups using light instead of wires gaining speed and investments

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Chip startups using light rather than electric currents for processing are gaining traction and getting big funding

In the latest example, Ayar Labs, a startup developing this technology called silicon photonics, said on Tuesday it had raised $130 million from investors including chip giant Nvidia CorpWhile the transistor-based silicon chip has increased computing power exponentially over past decades as transistors have reached the width of several atoms, shrinking them further is challenging. Not only is it hard to make something so miniscule, but as they get smaller, signals can bleed between them.

The challenge is that many large machine-learning algorithms can use hundreds or thousands of chips for computing, and there is a bottleneck on the speed of data transmission between chips or servers using current electrical methods. PsiQuantum raised about $665 million so far, although the promise of quantum computers changing the world is still years out.

It is not just the startups pushing this technology forward. Semiconductor manufacturers are also gearing up to use their silicon chip-making technology for photonics.

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