Blog
February 2026

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.
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:
Bit Error Rate (BER) — no forward error correction required
Validated thermal slew rate — matching the most demanding GPU workloads
Of optical I/O silicon validated and production-proven
Optical margin across links for robust deployment
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.