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Let's Get Serious: TeraPHY™ Optical Engine Passes the Test for AI Scale-Up at Volume

February 2026

TeraPHY Optical Engine in Action

The photonics industry has long promised that co-packaged optics (CPO) would revolutionize AI infrastructure. At Ayar Labs, we believe the time for promises is over. The TeraPHY™ optical engine has now passed the rigorous reliability and performance testing required for deployment in production hyperscale AI systems.

Testing That Matters

AI infrastructure is not forgiving. GPUs run hot, slew rates are extreme, and the cost of failure — in both financial and reputational terms — is enormous. That's why Ayar Labs has put TeraPHY through some of the most demanding reliability testing in the semiconductor industry.

Key results from our testing program include:

1e-12

Bit Error Rate (BER) — no forward error correction required

800°C/s

Validated thermal slew rate — matching the most demanding GPU workloads

3 generations

Of optical I/O silicon validated and production-proven

>5 dB

Optical margin across links for robust deployment

Built for Volume Manufacturing

TeraPHY is manufactured using the same standard CMOS processes used by major XPU and switch vendors. This isn't a custom photonics process that requires special handling or exotic manufacturing — it's the same foundry process that produces billions of chips per year. That means TeraPHY can scale to the volumes required by hyperscale AI infrastructure.

The UCIe-compliant chiplet format means TeraPHY integrates directly into existing package architectures using established packaging flows. Customers don't need to redesign their systems — they add TeraPHY the same way they add any other chiplet.

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