Celestial AI
Optical interconnect maker for AI chips, now a Marvell subsidiary.
On the record
Checkpoint: Marvell Q2 FY2027 earnings call, watch for named hyperscaler design wins and revenue progress
The call
Celestial AI's technology now rides inside Marvell, but its financial future hinges on hyperscalers picking its optics over NVIDIA's own or Ayar Labs' path.
Celestial AI designs photonic chips that connect data centers faster using light instead of traditional copper wiring. The company has real technology and relationships with major cloud companies, but it has not made any real money yet and will not until late 2027 or 2028. The biggest risk is not that competitors will copy the idea, but that NVIDIA is pushing its own optical connections and backing a rival company called Ayar Labs, so the industry may choose a different standard and leave Celestial AI behind.
Why
01
AI pressure: None apparent. Celestial AI builds the optical plumbing AI data centers need, it does not compete with AI models or agents. Could AI do the core job? Unlikely.
02
Bigger players: NVIDIA. NVIDIA is building its own co-packaged optics and backing chiplet rival Ayar Labs, which could sideline Celestial's Photonic Fabric in scale-up links. Could a giant copy it? Probably.
03
What protects it. Marvell's balance sheet, hyperscaler co-design ties, and Photonic Fabric patents plus the Rockley acquisition give it engineering depth rivals lack today.
What would change this call
Marvell names a hyperscaler production design win for Photonic Fabric in an earnings call. Would show real customer adoption is converting into committed volume business.
NVIDIA announces its scale-up interconnect standard for Vera Rubin-era systems (in-house CPO vs Ayar Labs). Would show whether the ecosystem is standardizing around a rival, sidelining Celestial AI.
Marvell's Q2 FY2027 earnings call reports progress toward the $500M FY2028 Celestial AI revenue milestone. Would show whether the acquisition's revenue ramp is on track or slipping.
NVIDIA announces its scale-up interconnect standard for Vera Rubin-era systems (in-house CPO vs Ayar Labs). Would show whether the ecosystem is standardizing around a rival, sidelining Celestial AI.
Marvell's Q2 FY2027 earnings call reports progress toward the $500M FY2028 Celestial AI revenue milestone. Would show whether the acquisition's revenue ramp is on track or slipping.
Key numbers
- Marvell closed Celestial AI acquisition Feb 2, 2026
- Deal worth $5.5B total, ~$3.25B upfront plus earnout
- Target: $500M ARR by Q4 FY2028, $1B by Q4 FY2029
Named risks
- NVIDIA could standardize scale-up interconnect around in-house CPO or Ayar Labs, bypassing Photonic Fabric.
- Marvell guidance shows no meaningful Celestial AI revenue until H2 FY2028, leaving years of pre-commercial exposure.
- Marvell is simultaneously integrating XConn Technologies (closed Feb 10, 2026), splitting integration bandwidth.
- Earnout milestones ($500M and $2B cumulative revenue through FY2029) are financially demanding and unmet as of acquisition.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Ayar Labs | contesting | Raised $500M at $3.75B valuation with NVIDIA, AMD, Intel backing, March 2026 |
| NVIDIA | contesting | Building own co-packaged optics and directly backs Ayar Labs as of Dec 2024 to 2026 |
| Broadcom | contesting | Developing rival co-packaged optics in-house despite 2023 prototype ties to Celestial AI |
Questions people ask
- Is Celestial AI still an independent company?
- No. Celestial AI became a wholly owned subsidiary of Marvell Technology (NASDAQ: MRVL) after the acquisition closed on February 2, 2026, ending its run as a standalone startup, per Marvell's own press release.
- Is Celestial AI profitable?
- No. Marvell disclosed on December 2, 2025 that it expects no meaningful revenue from Celestial AI's Photonic Fabric technology until the second half of its fiscal 2028, ramping to a $500M annualized run rate by Q4 FY2028.
- Who is Celestial AI's biggest competitor?
- Ayar Labs is Celestial AI's closest rival in optical interconnect chiplets. Ayar Labs raised $500M at a $3.75B valuation around March 2026 with direct backing from NVIDIA, AMD, and Intel.
- How much did Marvell pay for Celestial AI?
- Marvell agreed to pay about $3.25B upfront ($1.0B cash plus roughly 27.2M shares valued near $2.25B) plus up to $2.25B in earnouts, a total of up to $5.5B, announced December 2, 2025 and closed February 2, 2026.
- Could NVIDIA replace Celestial AI's technology?
- NVIDIA is building its own co-packaged optics and backs rival Ayar Labs, so if NVIDIA standardizes scale-up interconnect around in-house CPO or Ayar Labs, Celestial AI's Photonic Fabric could be sidelined, per Marvell's December 2025 deal disclosures.
- What did Celestial AI raise before being acquired?
- Celestial AI raised roughly $520M across seed through Series C1 rounds, including a $250M Series C1 led by Fidelity at a $2.5B valuation in March 2025, before Marvell's December 2025 acquisition announcement.
Timeline
- 2026-02-10Marvell closed acquisition of XConn Technologies, a second concurrent deal
- 2026-02-02Marvell completed acquisition of Celestial AI, making it a wholly owned subsidiary
- 2025-12-02Marvell announced definitive agreement to acquire Celestial AI for up to $5.5B
- 2025-08-13Celestial AI closed final Series C1 tranche, bringing total funding to about $520M
- 2025-03-11Celestial AI secured $250M Series C1 led by Fidelity at $2.5B valuation
- 2024-10-01Celestial AI acquired silicon-photonics IP from Rockley Photonics
- 2024-03-27Celestial AI closed $175M Series C funding round
- 2023-07-04Celestial AI disclosed $100M Series B and Broadcom prototype collaboration
- 2021-01-01Celestial AI (as Inorganic Intelligence) raised $2.9M seed round
Revision history
24 July 2026
First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Marvell Completes Acquisition of Celestial AI (2026-02-02)
- Marvell 8-K EX-99.1 (2025-12-02)
- $19.5M ARR, $2.5B Valuation (2025-09-17)
- Celestial AI lands $100M for 'disruptive' optical interconnects (2023-07-04)
- Celestial AI Secures $250 Million Funding (2025-03-11)
- Celestial AI Closes Final Series C1 Round (2025-08-13)
- What Does Celestial AI Do? - Company Overview
- Celestial AI raises $100M to expand Photonic Fabric technology platform (2023-07-04)
- Breaking copper barrier... (2025-03-11)
- Celestial AI 2026 Company Profile
- Celestial AI - Headcount, Funding & Open Jobs (2026-07-19)
- Ayar Labs Raises US$500 Million (2026-03-01)