PicoJool, a startup developing optical connectivity for AI infrastructure, has closed a $27.5 million Series A round. Socratic Partners led the investment, with Hudson River Trading also participating. The company previously raised a $12 million seed round, putting its early-stage funding at $39.5 million.

The financing comes as AI workloads place increasing demands on data center networks, where traditional electrical interconnects struggle to keep up with the scale of distributed training and inference. Optical connectivity is seen as a way to deliver higher bandwidth and lower latency, though the source does not detail PicoJool's specific technology or product roadmap.

What is clear from the announcement is investor confidence in the company's approach. Socratic Partners and Hudson River Trading are backing a player in a crowded but rapidly evolving field, where the ability to scale optical solutions cost-effectively will likely determine which startups survive. The source does not specify how the new funds will be allocated beyond scaling the company's efforts in optical connectivity for AI infrastructure.