Mesh Optical Technologies raises $50M to scale U.S. optical transceiver manufacturing

Mesh Optical Technologies closed a $50 million Series A led by Thrive Capital to build domestic manufacturing for optical transceivers and target qualification for hyperscaler orders in 2027–2028. The startup, led by engineers who designed laser links at SpaceX, plans to ramp to 1,000 units per day within a year and to price and scale components outside incumbent Chinese supply chains.

The company’s architecture removes a commonly used, energy-intensive element in transceivers, which the team estimates will yield a 3–5% reduction in energy draw for large GPU clusters — a material efficiency gain when scaled across multi-megawatt training farms. Optical links are central to synchronizing many GPUs; higher port counts in large clusters multiply transceiver demand, which is why hyperscalers prize reliable, high-volume suppliers and why competitors such as AOI have secured multibillion-dollar contracts with cloud providers.

Execution is the core technical risk: the founders must replicate the high-throughput, low-defect automation that today concentrates in East Asian facilities. Building compact, repeatable photonics assembly lines in the U.S. requires machine integration, process control, and test automation at scale — capabilities Mesh says it will develop alongside engineering to cut cost and cycle time. By putting design and manufacturing close together, the firm expects faster iterations and tighter quality feedback loops than geographically split teams permit.

Investors framed the round as both commercial and strategic: it addresses immediate interconnect demand for AI infrastructure while preempting a supply-chain concentration risk tied to overseas suppliers. If Mesh can deliver volume and reliability, it could reshape buying patterns at hyperscalers that balance price, power efficiency, and geopolitical risk. The startup also positions optical wavelength communications as a broader transition vector away from radio-frequency links toward photonics for high-bandwidth interconnects.