Optical interconnect startup Teramount has raised $50 million in a Series A funding round led by new investor Koch Disruptive Technologies (KDT).

Several new investors, including AMD Ventures, Hitachi Ventures, Samsung Catalyst Fund, and Wistron, also joined the round, alongside existing investor Grove Ventures.

The round includes $41 million in new funding and an additional $9 million from a previous SAFE (Simple Agreement for Future Equity) round undertaken in 2024 by the same investors and now converted as part of this round.

Founded in 2013 by CEO Hesham Taha and CTO Avi Israel, Israel-based Teramount develops optical connectivity solutions for AI, data centers, high-performance computing, communications networks, and sensors.

To date, the company has developed a number of products, including a detachable optical interconnect dubbed TeraVerse, which links optical fibers that sit outside the rack to the silicon photonics chips inside co-packaged optics (CPO) systems.

“This investment, which brings together strong financial and strategic investors, representing important parts of the optical connectivity ecosystem, is a testament to the potential of our technology in AI infrastructure and other high-performance applications,” said Taha. “We are grateful to our new and existing investors for their support.”

Isaac Sigron, managing director at KDT Israel and a recent appointee to Teramount's board of directors, added: “Optical interconnects are critical components of the future of AI infrastructure, and Teramount is poised to be a leading supplier of these solutions. We are very impressed with the position Teramount has established in the market and its partnerships with key industry players.”

Teramount said the funding will allow it to grow its team and scale to volume production ahead of the market adoption of co-packaged optics.