EnSilica experienced a notable increase in shares following a significant partnership announcement with Oriole Networks.
- EnSilica has secured a deal to develop photonics controller chips for Oriole’s optical network products.
- This partnership aims to enhance data centre efficiency, especially in AI operations.
- Oriole Networks is focused on revolutionising AI with light-based technologies, boasting substantial financial backing.
- Despite financial challenges, EnSilica is optimistic about its future due to new contracts and refinancing.
EnSilica’s shares saw a significant uptick of up to 9% after finalising a new deal with Oriole Networks, a spinout from University College London. This collaboration will have EnSilica designing and supplying photonics controller chips for Oriole, with the aim of improving the efficiency of optical network switch products used in data centres. Such advancements are intended to support AI applications by enhancing computing power while reducing energy consumption.
Oriole Networks, under the leadership of James Regan and backed by Ian Hogarth’s investment group Plural, is on a mission to transform high-performance computing. The company’s innovative approach uses light to network AI chip processing power, potentially speeding up the training of large language models by up to 100 times, all while using significantly less energy. This strategy is considered a key solution to the current energy demands of scaling generative AI.
Recently founded in 2023, Oriole Networks has successfully raised $35 million this year, indicating strong investor confidence in its vision for advancing AI technology. The company’s approach in using photonics for AI not only promises faster processing but also positions them as pioneers in developing sustainable AI solutions.
Despite recent financial warnings, EnSilica is positioning itself for continued growth. The company reported significant revenue increases and is actively seeking to refinance and sign new contracts. The recent partnership with Oriole Networks is part of EnSilica’s strategy to secure its financial footing and contribute to the UK’s semiconductor supply amidst global supply chain concerns.
EnSilica’s board maintains confidence in the company’s ability to trade beyond the next year. With new customer contracts and a £6 million refinancing deal, EnSilica aims to overcome its financial hurdles and continue its contributions to critical sectors such as communications, radar, and semiconductor technologies.
The collaboration between EnSilica and Oriole Networks marks a promising advancement in the efficiency of AI technology and data centre operations.
