AI data centers are at capacity—Can AttoTude’s $50m THz breakthrough keep the future online?

AttoTude has secured $50 million in Series B funding to accelerate the deployment of its THz interconnect technology, a breakthrough solution aimed at overcoming the growing limitations in AI data center infrastructure. The funding round was led by Mayfield and backed by existing investors including Sutter Hill Ventures, Canaan Partners, and Wing Venture Capital. This brings AttoTude’s total funding to $91 million.

The new capital will support the company’s move from pilot deployments to full-scale production, allowing it to meet rising demand from hyperscale and AI infrastructure providers. AttoTude’s THz interconnect platform enables high-speed data communication using standard manufacturing methods, eliminating the need for photonics or custom silicon packaging.

According to AttoTude co-founder and CEO Dave Welch, the company’s THz interconnect technology represents a “paradigm shift” in how data center systems manage high-bandwidth communication across short-to-mid distances. Welch stated that the growing volume of AI workloads is overwhelming traditional interconnect methods, creating an urgent need for low-power, high-bandwidth, and cost-effective alternatives.

Why AI data center infrastructure is facing a breaking point

The rapid expansion of generative AI models has led to a surge in demand for faster, denser, and more power-efficient compute architectures. However, as hyperscale operators race to scale infrastructure, interconnect bottlenecks have emerged as a primary limiting factor. Traditional solutions like optical networking and short-reach copper cabling are becoming insufficient for AI clusters that require both high radix and high density.

AttoTude’s answer lies in its use of THz interconnect technology, which enables signal transmission over copper wire at individual lane speeds up to 448 Gb/s—without using photonics. The approach supports communication distances up to 40 meters while maintaining energy efficiency and signal reliability. The result is a high-speed data communication system that supports scalable AI data center infrastructure without exotic assembly or high-cost components.

The company’s decision to rely on standard ASIC manufacturing processes also allows for easier scaling, enabling AttoTude to meet the production demands of hyperscale customers while remaining cost-competitive.

How AttoTude’s THz radios over wire deliver high-speed data communication at scale

At the technical core of AttoTude’s platform is its ability to deliver reliable high-speed data communication using THz radios over traditional copper wire. This capability enables chip-to-chip and board-to-board interconnects that maintain signal fidelity at multi-gigabit speeds over practical distances. Unlike optical-based solutions, AttoTude’s THz interconnects are fully compatible with existing semiconductor packaging and production ecosystems.

This makes it a particularly compelling option for hyperscale environments, where modular systems and disaggregated computing architectures require flexible, high-performance interconnects. With growing industry focus on compute-memory integration and chiplet-based design, AttoTude’s approach positions it at the forefront of next-generation system infrastructure.

Dave Welch explained that AttoTude’s technology is already being evaluated by major AI infrastructure players and hyperscalers, although specific customer names remain undisclosed. He noted that the current engagements will evolve into commercial deployments over the next 12 to 18 months as the company scales up production capacity.

Why this $50 million investment signals confidence in next-gen semiconductor innovation

Navin Chaddha, Managing Partner at Mayfield, described AttoTude’s THz interconnect technology as “the kind of once-in-a-decade advancement” that disrupts the status quo in the semiconductor sector. Chaddha highlighted that AI data center infrastructure is undergoing a “fundamental re-architecture,” and that AttoTude’s platform answers a growing market need with an energy-efficient, scalable, and manufacturable solution.

Chaddha added that AttoTude’s leadership team, which includes co-founder Joy Laskar, has the domain expertise and execution capability required to commercialise cutting-edge innovations. Laskar, who previously founded five startups and served as a professor at Georgia Institute of Technology, brings decades of experience in semiconductor systems and radio frequency engineering.

The company’s board also includes Basil Alwan, CEO of Tarana Wireless and former President of IP and Optical Networks at Nokia, as well as Peter Wagner, Founding Partner at Wing Venture Capital.

Why hyperscalers and cloud providers are paying attention to AttoTude

Industry experts increasingly view AI data center infrastructure as a primary area of vulnerability in the ongoing arms race to support generative AI workloads. Large-scale AI models require exponentially higher bandwidth, and traditional interconnects like PCIe, Ethernet, and even photonic links are either too short-range, too expensive, or too power-hungry.

AttoTude’s platform solves these problems by combining the bandwidth and low latency of optical systems with the cost structure and manufacturability of standard electronics. The system supports high-speed data communication across flexible topologies, which is vital for scaling transformer-based AI models and high-density compute fabrics.

With early traction already underway, AttoTude is working closely with Tier 1 infrastructure providers to fine-tune the performance and integration of its technology. The new funding will support this phase of customer engagement, in addition to expanding the company’s engineering, support, and manufacturing teams.

How THz interconnects could reshape the future of AI data center infrastructure

As AI workloads continue to reshape enterprise and cloud computing, AttoTude’s bet on THz interconnect technology may prove critical to unlocking the next wave of infrastructure scalability. The solution offers not only superior bandwidth and power performance but also compatibility with mainstream semiconductor processes—positioning it as a viable standard for the future.

In Welch’s view, data center architects and chip designers alike are looking beyond incremental upgrades and searching for systemic changes to how systems communicate. He believes AttoTude’s solution offers exactly that—a scalable, manufacturable, and performance-driven foundation for the AI era.

With $50 million in fresh capital and early traction among infrastructure leaders, AttoTude now faces the challenge of executing at scale. Its success could mark a turning point in semiconductor innovation—one that helps the entire industry push past today’s interconnect bottlenecks and into a new phase of AI data center performance.