On October 22, U.S.-based AI interconnect chip company Palomino Laboratories announced that it had secured its first commercial purchase order from a strategic hyperscale cloud service provider for high-performance GaN-based Micro LED chips designed for AI optical interconnects. The order marks a key step toward commercializing Micro LED optical interconnect technology.
The customer requires ultra-high-performance Micro LED chips specifically engineered for AI optical interconnects. Palomino noted that Micro LED technology originally developed for display applications is not optimized for optical communications and must be redesigned for high-speed data transmission to meet the link budgets and system requirements of AI data centers.
In response, Palomino will continue refining its nanomaterials and device designs to improve optical output power and fiber-coupling efficiency. The company said the product already meets the customer’s targets for all other technical parameters.
Palomino Targets Higher Bandwidth Density and Efficiency with Micro LED
Founded in Delaware in 2023, Palomino focuses on the AI interconnect market over distances of 0 to 50 meters. Its portfolio includes silicon chipsets designed to increase copper interconnect speeds, silicon photonic integrated circuits that enhance Micro VCSEL performance, and silicon- and gallium nitride-based chips for Micro LED interconnects.
Through its patented wavelength division multiplexing (WDM) technology, Palomino can combine more than two wavelengths within a single Micro LED structure, significantly boosting optical signal density and transmission efficiency.
The company aims to replace copper interconnects within data centers with Micro LED-based optical links. According to Palomino, its approach could reduce power consumption to approximately one-sixth that of conventional solutions while delivering around 10 times the bandwidth density and throughput on the order of 10 Tbps per millimeter.
Palomino has accelerated its Micro LED optical interconnect commercialization efforts in 2026.celerated its Micro LED optical interconnect commercialization efforts in 2026.
- In April, the company completed a private placement of USD 15.09 million, with proceeds allocated entirely to Micro LED optical engine development, acquisitions and integration, and customer sampling.
- In July, Palomino delivered its first-generation Micro LED optical engine prototypes to a hyperscale cloud provider. The customer completed system-level testing and confirmed that the bandwidth exceeded Palomino’s own design target. Sampling tests for the second-generation prototypes were progressing as planned.
- Also in July, Palomino signed a letter of intent to acquire interconnect chip company Vega Links in an all-stock transaction. The proposed acquisition would expand its portfolio across copper, Micro VCSEL and Micro LED interconnect solutions.
- That same month, Palomino also began trading on the U.S. OTCQB market under the ticker PALX.
Palomino said the purchase demonstrates that a leading AI infrastructure customer has recognized the technology’s potential. The company will now focus on meeting performance requirements and addressing manufacturing and supply-chain challenges associated with volume production.
(Photo credit: FREEPIK)
TrendForce 2027 Infrared Sensing and Optical Communication Market Trend
1. Annual Report
Release: 01 January 2027
Format: PDF / EXCEL
Language: Traditional Chinese / English
2. Optical Communications- InP Laser Diode & InGaAs Photodiode Quarterly Price Report
a. InP Substrate- 3-inch
b. EML- 100 / 200G
c. CW-DFB LD- 50 / 70 / 100mW
d. InGaAs Photodiode- 100 / 200G
e. DSP- 800G / 1.6T
Release: 20th of February, May, August, and November, 2027
Format: EXCEL
Language: Traditional Chinese / English
TrendForce 2026 Micro LED Display and Non-Display Application Market Analysis
Release: 15 September 2026
Format: PDF
Language: Traditional Chinese / English
|
If you would like to know more details , please contact:
|
