Credo completed its acquisition of DustPhotonics to bolster its silicon photonics efforts.

The deal, initially unveiled in April, sees Credo acquire the Israeli firm for around $750 million cash and nearly one million shares of Credo common stock.

DustPhotonics was founded in 2017 by four optics experts who worked across brands including Mellanox, Amphenol, and Intel. The quartet lent their expertise to boost optical connectivity for data center infrastructure via silicon photonics.

The likes of Sienna Venture Capital, Greenfield Partners, and Exor Ventures previously backed DustPhotonics. The firm started out building transceivers but pivoted to focus solely on silicon photonics.

DustPhotonics’ high-speed optical offerings span speeds ranging from 400 Gb/s (400G) and 800G to 1.6 Tb/s (1.6T) – as well as plans extending to 3.2T – providing interconnects that it claims can dramatically reduce cost per port speeds, while ensuring reliability.

DustPhotonics’ offerings will add to its new parents’ existing ZeroFlap portfolio of optical transceivers as well as optical digital signal processors (DSPs).

Credo said the acquisition will position DustPhotonics’ tech as a significant growth driver in fiscal 2027 amid anticipated adoption of silicon photonics from hyperscalers building out ever-expanding AI infrastructure, enabling it to offer a "vertically integrated connectivity stack.”

“I am extremely proud of the silicon photonics advancements we pioneered as a team and am excited to work alongside our new colleagues to accelerate our vision for optical interconnect,” Ronnen Lovinger, VP of silicon photonics at Credo, noted. “Silicon photonics will increasingly become the foundational technology for AI-driven optical connectivity – enabling the bandwidth, efficiency, and scale that next-generation infrastructure demands.”

“Together, we will continue to advance a powerful, end-to-end optical connectivity solution platform with reliability and power efficiency at its core, helping our customers scale AI infrastructure,” Credo CEO Bill Brennan added.

The acquisition comes shortly after Credo unveiled is second-generation 1.6T DSP. The three-nanometer line, known as Cardinal, is specifically designed to reduce power consumption to under 20 watts while maintaining ultra-low latency below 40 nanoseconds.