A startup named Lightmatter, valued at $4.4 billion, announced on Monday the launch of two technologies intended to enhance the connections between artificial intelligence chips. Unlike traditional electrical signals for moving data between computer chips, Lightmatter's technology utilizes optical connections with silicon photonics to transfer data using light.

Based in Mountain View, California, Lightmatter has acquired $850 million in venture funding so far. The development of optical technologies has sparked significant investments in Silicon Valley as the industry explores more efficient methods to link chips for powering chatbots, image generators, and other AI applications.

Various AI chip companies, including Advanced Micro Devices, have showcased the integration of optical technologies with their chips. While Nvidia recently integrated optical technology into some networking chips, its CEO expressed that the technology is not yet fully developed for application across all its chips.

Lightmatter introduced two new products designed to complement AI chips. One is an interposer, a material layer where the AI chip is placed to connect with other chips on top. The other product is a small tile known as a "chiplet" that can be attached onto an AI chip.

Lightmatter plans to release its interposer in 2025 and the chiplet in 2026. The interposer is being manufactured by GlobalFoundries.