Olix Targets AI Inference Market with $220M Funding in 2026

LONDON, February 13, 2026 — London-based startup Olix has secured $220 million in funding to develop its Optical Tensor Processing Unit (OTPU), a photonic AI inference chip that aims to challenge Nvidia’s dominance in the AI infrastructure market. The funding round, led by Hummingbird Ventures, has elevated Olix’s valuation above $1 billion, solidifying its status as one of the UK’s newest tech unicorns.

Executive Summary

• Olix, founded in 2024, secures $220M in funding, raising its valuation over $1B.
• The company develops Optical Tensor Processing Units (OTPU) for AI inference tasks.
• Led by founder James Dacombe, Olix plans to ship its first products by 2027.
• Expansion underway across London, Bristol, Austin, San Francisco, and Toronto.

Key Developments

Olix, founded by James Dacombe in 2024, has raised $220 million in its latest funding round, bringing its total funding to approximately $250 million. For more on [related ai chips developments](/top-7-ai-chips-priorities-hyperscalers-accelerate-for-2026-09-02-2026). The round was led by Hummingbird Ventures, with participation from Plural, LocalGlobe, and Entrepreneurs First. The funding pushes Olix’s valuation over $1 billion, making it one of the fastest-growing unicorns in the UK tech ecosystem.

The company’s breakthrough product, the Optical Tensor Processing Unit (OTPU), uses photonics instead of traditional GPU architecture to address the challenges of AI inference tasks. By combining SRAM with photonics, the OTPU promises higher efficiency and lower costs compared to chips reliant on high-bandwidth memory (HBM). Olix claims this design avoids supply chain bottlenecks that affect competitors in the sector.

With over 70 employees currently, Olix plans to expand its workforce to more than 200 across multiple global hubs, including London, Bristol, Austin, San Francisco, and Toronto. The company anticipates shipping its first products by 2027.

Market Context

The demand for efficient AI infrastructure is surging as generative AI models scale in complexity and computational requirements. Traditional GPUs, such as Nvidia’s, dominate the market for training and inference tasks. However, the cost of inference—the process of running trained AI models—has become a critical pain point for businesses deploying AI at scale.

Photonics-based solutions like Olix’s OTPU represent a promising alternative, leveraging the speed and energy efficiency of light-based computation. While several startups have explored photonics for AI, few have managed to overcome technical and capital barriers to commercialize their solutions. Olix’s success in securing substantial funding and achieving unicorn status highlights growing investor confidence in novel chip architectures.

BUSINESS 2.0 Analysis

Olix’s $220 million funding round signifies a pivotal moment for the AI chip industry, particularly in the UK, where semiconductor innovation has often lagged behind global leaders. The Optical Tensor Processing Unit (OTPU) offers a fresh approach to AI inference, addressing key challenges such as cost efficiency and supply chain resilience.

Founder James Dacombe’s strategy to avoid reliance on high-bandwidth memory (HBM) is noteworthy. Nvidia and other GPU manufacturers face significant supply chain constraints due to the complexity of HBM packaging and production. By focusing on SRAM-photonics integration, Olix may sidestep these hurdles, positioning itself as a viable alternative for businesses seeking scalable AI solutions.

However, the path to commercialization will be challenging. For more on [related ai chips developments](/ai-chip-startups-surge-funding-spikes-new-architectures-and-a-supply-chain-squeeze). AI chip development is capital-intensive, requiring not only technical breakthroughs but also robust partnerships with manufacturing and distribution networks. As Olix prepares to ship its first products by 2027, its ability to deliver on performance promises and secure market share will be closely watched.

Olix’s expansion to global hubs such as Austin and San Francisco indicates its ambition to compete directly in markets dominated by US-based players like Nvidia and AMD. The company’s success could signal a broader shift in the semiconductor industry toward diversification and innovation beyond traditional silicon-based architectures.

Why This Matters for Industry Stakeholders

For investors, Olix’s rapid rise underscores the growing appeal of alternative chip architectures in addressing AI infrastructure costs. The funding round demonstrates strong confidence in photonics-based solutions, which could reshape the competitive landscape.

For enterprises deploying AI, Olix’s OTPU offers the potential to reduce inference costs, enabling more widespread adoption of generative AI solutions. As AI models grow more complex, cost-efficient chips will become essential to maintaining profitability.

For policymakers, Olix’s success highlights the need for supportive frameworks to nurture semiconductor startups, particularly in the UK. With global competition intensifying, fostering innovation in chip design could strengthen national tech ecosystems.

Forward Outlook

Olix’s trajectory will depend heavily on its ability to execute its technical roadmap and deliver OTPUs on schedule. Shipping products by 2027 will require scaling manufacturing capabilities and securing early customer adoption. If successful, Olix could emerge as a serious competitor to Nvidia in the AI inference market.

Investors will likely monitor Olix’s expansion efforts across global hubs and its ability to attract talent in highly competitive regions. The company’s focus on photonics could also inspire further investment in light-based chip technologies, potentially leading to broader industry adoption.

As the AI infrastructure market evolves, Olix’s success could pave the way for other UK-based startups to compete globally, fostering a more diversified semiconductor ecosystem.

Key Takeaways

• Olix raises $220M, achieving unicorn status with a valuation above $1B.
• The company’s Optical Tensor Processing Unit (OTPU) uses photonics for AI inference.
• Expansion planned across London, Bristol, Austin, San Francisco, and Toronto.
• First products expected to ship by 2027, targeting Nvidia’s market dominance.

References

• Source: TechFundingNews
• Bloomberg Technology
• Financial Times Technology
• Wall Street Journal Tech
• More AI Chips Coverage

FAQs

• What is Olix’s Optical Tensor Processing Unit (OTPU)? The OTPU is a photonics-based AI inference chip combining SRAM with light-based computation to improve efficiency and reduce costs. Source: TechFundingNews.
• How does Olix aim to compete with Nvidia? By avoiding reliance on high-bandwidth memory (HBM) and focusing on photonics technology, Olix addresses supply chain issues and cost efficiency in AI inference tasks.
• Why is the AI inference market significant? With generative AI models becoming more computationally demanding, the cost of running these models (inference) presents a growing challenge for businesses deploying AI solutions.
• What are the risks for Olix? As a capital-intensive sector, chip development requires significant investment in manufacturing, distribution, and technical execution. Failure to meet performance goals could limit adoption.
• What is the outlook for photonics in AI chips? If Olix succeeds, photonics-based architectures could gain broader industry traction, challenging silicon-based GPU designs and fostering greater innovation.