Paris-based deeptech startup Arago, which replaces electricity with light in AI chips, has raised $26 million in seed funding. The round was co-led by Earlybird, Protagonist, and Bisionaries Tomorrow.
Competing Nvidia
Today's AI models are becoming increasingly larger and require more computing power. Traditional computer chips, such as those made by Nvidia, which are composed of transistors and electricity, are reaching their limits in terms of speed, energy consumption, and cost.
Co-founded in 2024 by Eliott Sarrey, Ambroise Müller, and Nicolas Muller, Arago creates an alternative solution — a photonic AI chip that uses light to run AI tasks. This is much more efficient as light can move faster with less energy than electricity, the startup claims. According to the team, its chip can reduce energy consumption 10-30 times, boosting performance while lowering operational costs.
"Our results to date demonstrate that Arago’s technology can seamlessly run AI models using industry-standard software frameworks, while remaining fully compatible with existing compute infrastructure, and semiconductor manufacturing processes," the team claims.
The details of the deal
Deeptech and semiconductor investors GenerativeIQ, C4 Ventures, Acequia Capital, along with several business angels, including Bertrand Serlet, former VP at Apple and co-founder of Fungible, and Olivier Pomel, co-founder of Datadog, joined the co-leading VCs.
The fresh capital will enable Arago to accelerate its R&D efforts, scale the team across France, Israel, and North America, and deepen strategic business and industrial partnerships to bring its technology to market.
