Astera Labs speaks on next generation AI connectivity
As AI infrastructure rapidly scales, system architectures are shifting toward optical connectivity and rack-level integration. To strengthen its position in this emerging landscape, Astera Labs has acquired aiXscalePhotonics, a move signalling its intent to lead the next phase of AI hardware evolution.
PIC Magazine Editor Sarab Chopra spoke with Adit Narasimha, Vice President and General Manager, Emerging Technologies at Astera Labs, to unpack why the company chose this moment, what aiXscale brings to the table, and how this acquisition fits into Astera Labs’ long-term vision for AI connectivity.
SC: Why did Astera Labs decide now was the right time to acquire aiXscale Photonics?
AN: We are at a very decisive moment for the industry, what we internally call AI Infrastructure 2.0. The traditional idea of a server or a computer is being completely redefined. In large AI training clusters, the effective computer is now the entire rack, not the individual node. Dozens and soon hundreds of accelerators and co-processors are working together as one cohesive machine.
When you architect systems at that scale, two silicon sockets become absolutely fundamental. The accelerator and the switch. The switch essentially becomes the brainstem of the AI rack. It is what connects accelerators into a single domain capable of training massive models or performing high-throughput inference.
Astera Labs already has its flagship switch platform serving this purpose, but as we project forward, these racks are clearly going to transition to optical connectivity. Domain sizes are growing, bandwidth requirements are surpassing what copper can handle, and the distances within and between racks are increasing. Optical connectivity becomes inevitable.
Given that trajectory, this was the right moment to acquire aiXscale Photonics. Their technology fits directly into the future version of our switch, the optically enabled one, and strengthens a core part of the roadmap we have been building toward for years. It allows us to accelerate that transition instead of reacting to it later.
SC: Why was aiXscale’s technology such a good fit for Astera Labs’ vision?
AN: aiXscale brings a very specific capability that we consider foundational for next-generation AI connectivity. Their optical component offers the right combination of performance, density, manufacturability, and scalability, all aligned with where our customers are heading. That last part is crucial because whatever technology we adopt must be deployable at hyperscaler scale.
For us, this acquisition is not about adding a one-off technology. It is about building the full suite of optical competencies required to support our customers as their infrastructure evolves. We work closely with them to design purpose-built scale-up networks. Wherever copper remains viable, we will use it. But we must also be ready with end-to-end optical solutions as bandwidth, latency, and energy requirements push systems in that direction.
We view this acquisition as an essential early step in a broader optical journey. aiXscale gives us a key building block, and over time we will expand that foundation with additional components and capabilities, developed internally or through future partnerships, to deliver a complete optical connectivity solution integrated seamlessly into our switch platforms.
SC: What benefits will this acquisition bring to customers and the wider AI infrastructure market?
AN: The primary benefit is readiness and confidence. Our customers are building systems that will continue scaling at an unprecedented rate. They need interconnect solutions that perform exceptionally today and can scale across multiple generations of AI hardware.
By bringing aiXscale’s technology in-house, we can offer a more integrated and robust solution. One that supports copper where appropriate, while also providing optical connectivity that aligns with customers’ long-term architectural direction. Many companies in this space traditionally specialise in either optics or electrical connectivity. We are positioning ourselves to deliver both in a unified system-level solution.
This acquisition also accelerates our ability to deliver complete rack-scale interconnect solutions that are difficult to replicate. When customers design their next AI rack, they will not be evaluating isolated components. They will be assessing the resilience, coherence, and scalability of the entire interconnect ecosystem. This acquisition significantly strengthens our ability to deliver that end-to-end.
SC: What immediate plans do you have for integrating aiXscale’s team and technology into Astera Labs?
AN: The technology will be integrated directly into our switch platforms, because that is where it has the most transformative impact. The long-term vision is a fully optically enabled switch, and aiXscale’s technology becomes a critical enabler of that. As AI domain sizes expand and egress densities rise, optical I/O stops being a nice-to-have and becomes a necessity. The immediate focus is on aligning their capabilities with our roadmap for that next-generation switch.
On the organisational side, the aiXscale team has been integrated into our broader engineering and product groups. They will work closely with teams developing our system-level solutions. We integrate in a way that maintains their expertise while combining it with the system knowledge we have built over years of customer engagement.
We will also continue to partner where it makes sense. In some areas, building expertise internally is the right choice. In others, strategic partnerships provide acceleration. Our approach is straightforward: we do what best supports our customers' roadmaps.
SC: Why does this acquisition position Astera Labs as a leader in scale-up AI connectivity solutions?
AN: It strengthens the most critical capability needed for AI Infrastructure 2.0, which is optically enabled switching at rack scale.
We already work deeply with customers building purpose-designed scale-up networks. We understand their performance requirements, deployment constraints, and long-term roadmaps. What they need now is a partner that can support the transition from copper-centric architectures to hybrid and eventually predominantly optical ones.
This acquisition enables that. It allows us to deliver a cohesive solution that integrates both electrical and optical domains into a single, unified platform. As AI systems continue to scale, that type of integrated approach becomes a defining differentiator.
We are not simply adding optical components to our products. We are building the foundation for the next generation of rack-scale AI systems. That positions us strongly as a leader in this space.
SC: What is the long-term vision for Astera Labs with aiXscale’s technology?
AN: The long-term vision is to integrate aiXscale’s optical technology into our switch platforms to create a fully photonic, high-density, rack-scale switch. This switch becomes the central element of AI Infrastructure 2.0, enabling accelerators to function as a unified computational domain.
We talked about how the rack is now the computer. For that concept to scale to the sizes we see on customer roadmaps, optical connectivity becomes mandatory. Electrical solutions cannot meet the bandwidth and density requirements at the scale needed.
aiXscale’s technology becomes a crucial building block in enabling this transition. It provides the optical capabilities needed for the evolution of our flagship switch platform and positions us to support customers as their systems grow far beyond what was previously possible.
In short, the vision is to lead the transition to fully optical, high-density, rack-scale AI connectivity. aiXscale’s technology will play a central role in achieving that.
