Artificial intelligence has transformed the world, powering everything from natural language processing to autonomous systems. Yet behind the most advanced AI models lies a largely invisible challenge: moving massive amounts of data quickly and efficiently. Celero Communications, a Silicon Valley-area start-up based in Irvine, California, has emerged as a key player in solving this problem. Rather than focusing on flashy AI applications, the company is tackling the fundamental architecture of data centers—specifically, how information travels across racks, clusters, and even entire campuses with maximum efficiency and minimal energy waste.
Founded in 2024 by veterans from Marvell, Inphi, Broadcom, and ClariPhy, Celero Communications focuses on coherent digital signal processors (DSPs) for optical networking. These devices are designed to overcome the bandwidth and power limitations of traditional electrical interconnects, which struggle under the load of modern AI workloads. By adapting coherent optical techniques—previously used in long-distance telecommunications—for mid-range data center connections, Celero aims to create a new standard for high-speed, energy-efficient connectivity.
The company quickly gained attention in 2025 when it raised $140 million in funding, with $100 million coming from CapitalG, Alphabet’s growth-stage investment fund. This level of support highlights both the urgency of addressing data movement bottlenecks and the confidence investors have in Celero’s technical team. As data centers continue to scale, the company’s coherent DSP solutions may become an essential component of AI infrastructure, enabling faster training, lower energy consumption, and greater overall efficiency.
The Challenge of AI Data Movement
AI workloads, especially those associated with large language models and generative networks, generate enormous volumes of data that must move efficiently between processors, accelerators, and storage systems. Traditional copper-based interconnects often fail to meet the demands of modern data centers, suffering from limitations in speed, heat dissipation, and distance.
Optical fiber offers a compelling alternative, providing higher bandwidth and lower signal loss. However, conventional coherent optical technologies have historically been reserved for long-haul applications. Celero’s innovation is adapting these techniques for shorter distances—within and between AI clusters—while reducing cost and power consumption. This enables faster, more reliable data transfer without the prohibitive energy costs associated with scaling large AI deployments.
At the heart of Celero’s approach is its coherent DSP platform, which allows complex data patterns to be transmitted via light while compensating for signal distortions. By enabling higher data rates with lower errors and reduced energy usage, Celero’s technology addresses one of the most pressing challenges in AI infrastructure: efficiently moving massive datasets at scale.
Origins and Leadership
Celero Communications was founded by Nariman Yousefi (CEO) and Oscar Agazzi (CTO), both of whom bring decades of experience in semiconductors and networking. Yousefi previously held senior positions at Inphi and Marvell, while Agazzi has extensive expertise in high-performance networking and signal processing.
The company maintains design centers in Canada and Argentina in addition to its Irvine headquarters, allowing it to tap into diverse talent pools and maintain a global engineering presence. This international footprint supports Celero’s mission to develop scalable solutions for data centers around the world while navigating complex global supply chains and geopolitical considerations.
Funding and Growth
Celero’s most significant milestone came in late 2025 with the announcement of a $140 million funding round. The Series B, led by CapitalG, was complemented by earlier seed and Series A investments from firms such as Sutter Hill Ventures.
This influx of capital reflects both the company’s technical promise and the broader market demand for scalable AI infrastructure solutions. By enabling faster, more energy-efficient optical connections, Celero’s coherent DSP technology addresses a critical bottleneck faced by hyperscale data centers, particularly those operated by cloud providers seeking to maximize performance while controlling energy costs.
The Technology: Coherent DSPs for AI
Celero’s coherent DSP platform is designed to bring the advantages of optical communication into the mid-range distances typical of AI clusters. Unlike traditional optical solutions, which are costly and power-intensive for short-distance use, Celero’s DSPs provide terabit-scale bandwidth at reduced power consumption.
This technology achieves several critical objectives:
Power Efficiency: Reduced energy consumption per transmitted bit helps lower operational costs and cooling requirements.
High Bandwidth: Supports massive AI workloads by enabling faster data movement between servers and accelerators.
Error Reduction: Advanced signal processing compensates for distortions, ensuring reliable data transfer.
Scalability: Optimized for use within racks, across clusters, and between data center buildings.
By integrating these capabilities, Celero positions itself as a crucial player in the infrastructure behind next-generation AI models.
Competitive Landscape
Celero operates in a competitive environment alongside industry giants like Broadcom and Nokia, as well as emerging silicon photonics companies. However, its focus on mid-range coherent DSPs specifically designed for AI workloads differentiates it from larger competitors, who have traditionally prioritized long-haul optical solutions.
Investors and analysts have emphasized the company’s advantage in both technical expertise and market timing. The founders’ track record in shipping coherent DSPs and networking integrated circuits adds credibility, while the rapid growth of AI infrastructure creates a receptive market for their technology.
Industry Implications
The adoption of Celero’s technology could have far-reaching effects. Efficient, scalable optical connectivity can redefine how AI clusters are architected, enabling higher-density deployments with lower power costs. This, in turn, can accelerate the training of AI models, support more complex applications, and reduce the operational expenses of cloud providers and enterprises.
As AI continues to permeate critical sectors such as healthcare, finance, and autonomous systems, innovations in data movement infrastructure will become increasingly strategic. Celero’s coherent DSP solutions offer a glimpse into a future where AI performance is limited not by computing power alone but by the efficiency of data transfer itself.
Challenges and Future Outlook
Despite its promising technology, Celero faces significant challenges. Producing high-performance, cost-effective silicon is complex, and integrating new optical solutions into existing data center architectures requires careful engineering and strategic partnerships.
Deployment in real-world environments presents additional hurdles. Data centers are heterogeneous ecosystems, with legacy equipment and multiple vendors coexisting. Ensuring consistent performance across these systems will be critical to achieving widespread adoption.
Nonetheless, Celero’s positioning, technical expertise, and strategic funding provide a strong foundation for growth. As AI workloads continue to expand, the company’s coherent optical technology may become a vital component of global infrastructure, shaping the future of high-performance computing.
Conclusion
Celero Communications represents a new wave of companies addressing the hidden yet essential challenges of AI infrastructure. While AI models capture public attention, firms like Celero work behind the scenes to ensure that massive volumes of data move efficiently, reliably, and sustainably. With seasoned leadership, significant funding, and innovative technology, Celero is well-positioned to transform how data centers connect the building blocks of artificial intelligence. Its success could reshape both the economics and architecture of AI, demonstrating that the backbone of innovation often lies in the quiet engineering of data itself.
FAQs
What is Celero Communications?
Celero Communications develops coherent digital signal processors for high-speed, energy-efficient optical connectivity in AI data centers.
What problem does Celero solve?
It addresses data movement bottlenecks in AI infrastructure, enabling faster, more reliable, and energy-efficient interconnects.
Who founded Celero Communications?
Nariman Yousefi (CEO) and Oscar Agazzi (CTO) founded the company in 2024, bringing decades of experience in semiconductors and networking.
How much funding has Celero raised?
The company raised $140 million in 2025, including a $100 million Series B led by CapitalG.
Where are Celero’s offices located?
Celero is headquartered in Irvine, California, with design centers in Canada and Argentina.
