Neurophos Raises $110M to Develop Optical AI Chips for Inferencing

Neurophos, a photonics startup based in Austin, raised $110 million in a Series A round led by Gates Frontier, with participation from Microsoft’s M12, Aramco Ventures, and others, to develop optical processing units (OPUs) for AI inferencing. The company aims to address rising power demands in AI data centers by using metasurface modulators—optical components 10,000 times smaller than traditional transistors—to perform matrix operations more efficiently than silicon-based GPUs. Neurophos claims its OPU can achieve 235 Peta Operations per Second (POPS) at 675 watts, outperforming Nvidia’s B200 GPU, which delivers 9 POPS at 1,000 watts. The technology leverages photonic computing, where light enables faster, cooler computation, reducing energy use during inferencing. The startup says its chips can be manufactured using standard silicon foundry processes, easing scalability. Neurophos plans to launch its first chips by mid-2028 and is expanding engineering teams in San Francisco and Austin. Microsoft has expressed strong interest, citing the need for compute breakthroughs to match AI model advances.