Credo Acquires Ottawa’s Hyperlume to Boost AI Data Solutions

Ottawa-based Hyperlume, a developer of optical interconnects designed for artificial intelligence (AI) data centres, has been acquired by Credo, a semiconductor company based in San Jose, California. The financial terms of the acquisition have not been disclosed. This deal marks a significant move in the tech industry, highlighting the growing demand for advanced connectivity solutions in AI-driven infrastructures.

Credo, which has a market capitalization of $25 billion USD and is listed on the NASDAQ stock exchange, aims to leverage Hyperlume’s micro light-emitting diode (microLED) technology to meet the increasing bandwidth demands that are reshaping data transmission methods within data centres. The company emphasized that the integration of Hyperlume’s technology can facilitate the scaling of “massive AI clusters,” which are essential for the evolving landscape of AI applications.

Strategic Acquisition for the AI Era

According to Bill Brennan, president and CEO of Credo, “MicroLED technology aligns with our mission to innovate and advance high-speed connectivity by enabling faster, more reliable, more energy-efficient, and scalable solutions for the AI era.” Brennan expressed enthusiasm about welcoming the Hyperlume team and highlighted the potential for collaboration in developing new connectivity solutions.

Founded in 2022 by Mohsen Asad and Hossein Fariborzi, Hyperlume focuses on alleviating connectivity bottlenecks in accelerated computing environments. The company’s innovative microLEDs, which represent a cutting-edge flat-panel display technology, are paired with specialized power circuitry to enhance performance in AI data centres. Following the acquisition, Asad announced on LinkedIn that he has assumed the role of senior director of core technology at Credo.

The acquisition comes shortly after Hyperlume secured $12.5 million USD in seed funding to further commercialize its groundbreaking technology. This funding round was co-led by the BDC Capital’s Deep Tech Venture Fund and ArcTern Ventures, with contributions from US-based MUUS Climate Partners, SOSV, and the venture capital divisions of American chipmaker Intel and South Korean electronics giant LG.

Implications for the Data Centre Industry

Hyperlume’s microLED-based optical interconnects reportedly offer a performance boost, claiming to provide ten times the computing capabilities while saving five times the power, all at a quarter of the cost of traditional copper interconnects. Data centre interconnects play a crucial role in linking multiple data centres, enhancing their ability to share and transfer data across varying distances.

With AI adoption surging, the demand for data centre resources and energy consumption is projected to escalate dramatically. A recent report from Goldman Sachs anticipates a staggering 165 percent increase in data centre power demand by 2030, underscoring the need for more efficient technologies.

Hyperlume’s website argues that existing AI models have already begun to exceed the capabilities of traditional interconnects. The company asserts that scaling the next generation of AI systems will necessitate significantly improved connectivity and reduced power consumption.

The acquisition of Hyperlume by Credo adds to a growing trend where promising Canadian semiconductor startups, including CentML, Tenstorrent, and Untether AI, have either relocated to the US or been acquired by larger American firms in recent years. As the tech landscape continues to evolve, Hyperlume’s integration into Credo may pave the way for innovative advancements in AI data infrastructure.