Lumai raises $10m to revolutionise AI with optical tech

Lumai has announced securing an investment exceeding $10 million to enhance AI processing capabilities and improve data centre sustainability through its optical computing technology.

The investment round was led by Constructor Capital, with participation from IP Group and several new investors, including PhotonVentures, Journey Ventures, LIFTT, Qubits Ventures, State Farm Ventures, and TIS Inc. Lumai plans to use the funds for product development, increasing its workforce, and expanding its operations in the U.S.

The investment comes as AI models challenge the capabilities of current silicon-based computing infrastructure due to their growing demands, which has resulted in significant increases in power consumption by data centres. Data centre power usage in the U.S. is projected to triple by 2028, potentially accounting for 12% of the nation's power consumption.

Lumai's technology, which originates from research at the University of Oxford, is designed to address these limitations using optical processing. This method is utilised to improve performance in processing large language models and other transformer-based AI, overcoming the scaling limitations typically associated with optical computing technologies.

Lumai has developed a method to execute AI arithmetic operations using optical beams within 3D space, surpassing the traditional limits of silicon GPUs and integrated photonics. This approach uses low-cost optical components and promises a substantial improvement in cost-effectiveness and performance for AI inference, potentially reducing AI running costs to a tenth of current top solutions.

The optical processor developed by Lumai is expected to deliver 50 times the performance of existing silicon-only processors, while consuming only 10% of the energy required for AI data centres, which could lead to significant cost savings.

Tim Weil, CEO and co-founder of Lumai, emphasised the importance of this technological shift: "The future of AI demands radical breakthroughs in computing. The cost of current LLMs is unsustainable, and next-generation AI won't happen without a major shift. Lumai's innovative optical computing design overcomes the scalability challenges that have held others back and dramatically reduces power consumption, which will drive down the cost of AI."

Dr. Serg Bell, Founder and Chairman of Constructor Capital, highlighted the need for new computing approaches: "Life and intelligence are a large carbon-and electron-based neural model trained over 2 billion years. Fossil fuels are a byproduct of this evolution, and they may not generate enough energy to create a better model if we continue using electron-based computation. We need more efficient, faster energy sources for the next generation of humanity's neocortex: Artificial General Intelligence. Photons are the only known choice. Lumai's technology is a significant step forward in improving matrix multiplication, similar to the advancements quantum computers offer for other computational scenarios."

Dr. Lee Thornton, partner for deep tech at IP Group, acknowledged Lumai's innovative approach: "Having solved the challenges of optical compute to provide a low-cost, scalable solution, Lumai's technology has the potential to transform the future of AI. We are proud to continue supporting Lumai as it embarks on the next phase of its journey."

Furthermore, Ewit Roos, General Partner at PhotonVentures, recognised the company's potential market impact: "Lumai isn't just innovating — it is fundamentally reshaping the future of AI compute. Lumai presents one of the most compelling opportunities in next-generation data centre technology, positioning it at the forefront of the AI revolution."

This investment reflects confidence in Lumai's potential, further evidenced by its recent accolades such as winning 'Best Overall Technology' at the Global OCP Future Technologies Symposium and participation in the inaugural Intel Ignite London programme.