Oriole Networks raises $22 million to reduce energy consumption of AI data centres

Oriole Networks, the company pioneering the use of light to power Large Language Model (LLM) training with significantly reduced energy consumption, has secured an additional $22 million in funding from leading investors. The round, led by Plural, saw reinvestments from existing backers including UCL Technology Fund, XTX Ventures, Clean Growth Fund, and Dorilton Ventures.

Oriole Networks addresses some of AI's biggest challenges – speed, latency, and sustainability – by leveraging cutting-edge photonics technology. This approach connects AI chips using light, enabling LLM training up to 100 times faster while using a fraction of the usual power. With this energy-efficient solution, Oriole is positioned to ease the growing strain on data centres, whose increasing energy demands could lead to a significant rise in emissions. A study by Rhodium Group predicts that if data centre demand triples by 2035, as expected, emissions from the power sector could surge by more than 56%, particularly if renewable energy installations lag behind.

Founded in 2023 at University College London (UCL), Oriole Networks brings decades of innovation in optical networks to the forefront of AI technology. CEO James Regan, a seasoned entrepreneur who previously founded EFFECT Photonics, has assembled a top-tier commercial team to bring the company’s unique intellectual property to market. This IP, developed over two decades by UCL scientists Professor George Zervas, Alessandro Ottino, and Joshua Benjamin, promises to revolutionise AI’s energy footprint. Ian Hogarth, representing Plural in the funding round, will join the board to support Oriole's growth phase.

Oriole’s photonics expertise has drawn a world-class team, including professionals from Lumentum and backers with experience in high-performance computing, such as XTX Ventures, the venture arm of XTX Markets. The company aims to tackle the rising energy demands of AI. Recent reports highlighted that ChatGPT alone consumes energy equivalent to the annual power needs of Gibraltar, with each query using more than 25 times the energy of a Google search. AI computing power, doubling every 100 days, is expected to increase by over a million times in the next five years. Oriole’s solution addresses this immense demand without compromising environmental sustainability.

The recent $22 million injection brings Oriole Networks’ total funding to $35 million in 2023. The company plans to accelerate its growth by expanding its team and working with large-scale suppliers. By 2025, Oriole aims to have its first products in the hands of customers, establishing a photonic networking ecosystem for AI that could redefine the sector.

James Regan, CEO of Oriole Networks, said: “This funding is yet another milestone for Oriole following a year of rapid pace and growth. This is a booming market desperate for solutions and our ambition is to create an ecosystem of photonic networking that can reshape this industry by solving today’s bottlenecks and enabling greater competition at the GPU layer. Building on decades of research, we’re paving the way for faster, more efficient, more sustainable AI.”

Ian Hogarth, Partner at Plural, said: “Applying 20 years of deep research and learning in photonics to create a better AI infrastructure demonstrates how much more innovation there is to come to help reap the benefits of this technology. The team behind Oriole Networks have proven experience in both company building and bringing deep science to commercialisation and are creating a fundamental shift in the design of next generation networked systems that will reduce latency and slash the energy impact of data centres on which we now rely.”

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