Palo Alto-based optical connectivity startup PicoJool has emerged from stealth with $12 million in funding, aiming to tackle the growing bandwidth demands of AI and hyperscale data centers. The financing round was led by Playground Global, with the company unveiling a new class of pixel-level photonics designed to make optical links as cost-effective, compact, and manufacturable as traditional copper connections.
PicoJool is developing the world’s highest-bandwidth Vertical Cavity Surface Emitting Lasers (VCSELs), leveraging parallel optics and innovative packaging to deliver high performance at low cost. The technology is integrated into massively parallel pluggable modules, with a focus on large-scale AI systems that demand ultra-high-speed data transfer.
“The relentless demand for bandwidth in hyperscale and AI data centers requires a fundamental shift in connectivity, moving beyond the physical and economic constraints of copper,” said Al Yuen, founder and CEO of PicoJool. He added that the funding will accelerate deployment of the company’s VCSEL technology across external foundries.
Pat Gelsinger, general partner at Playground Global, highlighted the timing of the launch. “AI-scale computing is the driving force for the conversion from copper to optical to happen now,” he said. “PicoJool arrives at the precise moment the industry needs it most, where the demand for bandwidth meets the need for efficiency. By making high-bandwidth optical connectivity cost-competitive and manufacturable at scale, PicoJool is collapsing the cost and complexity barriers that have held photonics back for decades.”
The company’s team brings extensive experience in photonics. Yuen, who holds over 50 patents in the field, has previously contributed to foundational internet connectivity technologies including Active Optical Cables (AOC) and QSFP transceivers. This expertise, coupled with a strong network across the semiconductor supply chain, positions PicoJool to design and scale optical solutions capable of handling 800G, 1.6T, and higher data rates.
PicoJool’s VCSELs are engineered for longer reach and greater network flexibility, key for AI data centers requiring high-performance, low-latency interconnects. The company operates out of Palo Alto, with R&D and operational facilities in both the U.S. and Taiwan. The new funding will be used to expand manufacturing capabilities and intensify R&D efforts, including advancing low-cost VCSEL technology into 400G/lane systems and beyond.
