Taara exits Alphabet’s X labs, secures external funding

Taara exits Alphabet’s X labs, secures external funding

  • 17.03.2025 00:00
  • datacenterdynamics.com
  • Keywords: AI, Startup

Taara, a freespace optics startup spun out of Alphabet’s X lab, secured external funding led by Series X Capital. The company revealed a new optical chip using software to steer light beams, enabling high-speed data transmission up to 20Gbps over 1km. This innovation aims to enhance connectivity in underserved regions and various networks.

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Estimated market influence

Taara

Positivesentiment_satisfied
Analyst rating: N/A

Taara is a startup that has spun out from Alphabet's X lab and secured external funding. They have developed innovative optical chip technology which could revolutionize data transmission.

Alphabet

Alphabet

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Analyst rating: Buy

Alphabet, through its X lab (Moonshot Factory), supported Taara as a moonshot project until spinning it out into an independent company. Alphabet retains a minority stake in Taara post-funding.

Context

Analysis and Summary: Taara Exits Alphabet’s X Labs, Secures External Funding

Key Business Insights and Market Implications

Spin-Off and Funding

  • Taara has spun off from Alphabet's X lab (formerly Google's skunkworks) to become an independent company.
  • Raised a new funding round led by Series X Capital, with Alphabet retaining a minority stake.

Product and Technology

  • Lightbridge: Transmits data at up to 20 Gbps over 20 km using laser beams, consuming ~40W per unit.
  • Taara Chip: A silicon photonic chip that uses light for high-speed data transmission.
    • Uses software-based beam steering (optical phased array) instead of physical components.
    • Tested at 10 Gbps over 1 km outdoors with current tech; future versions aim to scale range and capacity.

Deployment and Applications

  • Deployed in 15+ countries, including Australia, Kenya, Fiji, Congo, India, and Pacific Islands.
  • Partnerships with T-Mobile (USA), Bluetown (India), Digicel (Pacific), and trials with drones in Spain for emergency use.
  • Potential applications:
    • Mesh networks for underserved regions.
    • Data center interconnects.
    • Autonomous vehicle networks.

Market Potential

  • Freespace optics market is growing, driven by demand for high-speed, wireless connectivity solutions.
  • Taara's technology addresses last-mile connectivity gaps, benefiting over 3 billion people without internet access.

Competitive Landscape

  • Competitors include Luminet, Ovzon, and Vayu. Taara’s chip-based solution offers a compact, scalable alternative to traditional systems.
  • Alphabet’s X lab provided advanced R&D support, giving Taara a competitive edge in early-stage innovation.

Regulatory and Strategic Considerations

  • Potential regulatory hurdles include spectrum allocation for laser-based systems and safety standards.
  • Taara's strategic focus on underserved markets aligns with global initiatives like UN Sustainable Development Goals for internet access.

Long-Term Effects

  • The spin-off positions Taara to scale independently, accelerating commercialization of its technology.
  • Future iterations of the chip could redefine wireless connectivity, enabling terabit-speed networks and 5G evolution.

Investment Appeal

  • Attracting Series X Capital highlights confidence in Taara’s market potential and leadership under CEO Mahesh Krishnaswamy.
  • The company’s ability to secure external funding while maintaining Alphabet’s minority stake underscores its growth prospects.

This analysis captures the strategic significance of Taara's transition, technological advancements, and market opportunities in the evolving connectivity landscape.