PicoJool, a startup focused on optical interconnect technology for AI data centers, has secured $27.5 million in a Series A funding round. The investment was led by Socratic Partners with participation from Hudson River Trading. This latest injection of capital brings the company's total funding to $39.5 million, following a $12 million seed round led by Playground Global.

The company develops semiconductor laser diodes known as Vertical Cavity Surface Emitting Lasers (VCSEL). This technology enables data transmission via light signals through optical cables, replacing traditional copper wire interconnects. PicoJool claims its products, including 100G and 200G VCSELs and 50G/64G MicroVCSEL configurations, can achieve bandwidths of up to 3.2 terabits per second.

Founder and CEO Al Yuen stated that the new funds will be used to expand teams in the United States and Taiwan. The company is currently working with partners, including WIN Semiconductors Corp., to prepare its 200G VCSEL products for mass production. The primary focus of the business is now the commercialization of its existing portfolio and the transition into AOC and NPO modules.

Former Intel CEO Pat Gelsinger, who backed the company through his firm Playground Global, noted that connectivity has become a critical constraint for AI performance. PicoJool aims to address this bottleneck by providing solutions that increase bandwidth while simultaneously reducing energy consumption and operational costs for large-scale AI chip clusters.