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Ayar Labs

Using Light to Power Next-Generation AI

Artificial Intelligence

Investment Thesis

The Opportunity

The copper technology we've relied on to power data connectivity for decades is becoming a bottleneck for modern AI, limiting how quickly data can move between increasingly powerful chips.

The Solution

Ayar Labs packages optical technology directly alongside AI processors, allowing data to move as light rather than electrical signals to increase bandwidth, reduce power consumption and help AI infrastructure scale.

Why We Invested

  • Preparing for Scale:

    Ayar Labs is advancing toward high-volume commercial deployment, supported by $650 million of primary capital raised in 2026 to help scale production.3
  • Designed for Adoption:

    Ayar Labs' technology is designed to work with existing chip manufacturing processes, potentially making it easier for semiconductor manufacturers to integrate and scale.
  • Industry Validation:

    Backed by NVIDIA, AMD and Intel, Ayar Labs has attracted strategic investment from companies spanning chip design, manufacturing and data center hardware.3, 6

Market Opportunity

As AI systems grow larger and more powerful, moving large amounts of data quickly and efficiently between processors is becoming increasingly important. This is driving demand for new connectivity technologies that can increase bandwidth while reducing the power and space required to support next-generation AI infrastructure.

Company Overview

Ayar Labs grew out of research at MIT, UC Berkeley and CU Boulder that produced the first processor to communicate using light. Founded in 2015 to bring that breakthrough into real-world computing, the company has since built a portfolio of more than 200 patent filings, shipped thousands of optical components and expanded its engineering footprint across the U.S. and Asia as it prepares for high-volume commercial production. 1, 3

Milestones

  • September 2026

    Raised an additional $150M, bringing total primary capital raised in 2026 to $650M3
  • September 2026

    Opened a new design center in Bengaluru, India3
  • June 2026

    Joined NVIDIA’s NVLink Fusion ecosystem, positioning Ayar’s technology for potential use in large-scale AI data centers
  • March 2026

    Closed a $500M Series E funding round at a $3.75B valuation4
  • March 2025

    Unveiled the industry's first UCIe optical chiplet for AI scale-up, capable of 8 Tbps bandwidth5
  • December 2024

    Raised $155M in financing, bringing its valuation above $1B6

Accessing the Opportunity

Many artificial intelligence companies have the potential to generate significant value while remaining private. The Private Shares Fund gives RIAs and their clients exposure to late-stage private market companies with daily NAV pricing and no accreditation requirements.

How to Invest Explore the Portfolio

Ayar Labs News

This Month In Venture - September 2026

The Private Shares Fund, October 16, 2026
Sources

1 Ayar Labs Website, “Engineering AI Infrastructure with Co-Packaged Optics,” accessed September 2026.

2 Ayar Labs, “Ayar Labs Joins NVIDIA NVLink™ Fusion Ecosystem to Bring Co-Packaged Optics to Rack-Scale AI Infrastructure,” June 2, 2026.

3 Ayar Labs, “Ayar Labs Expands 2026 Funding to $650 Million to Scale Manufacturing-Ready CPO for AI Scale-Up Beyond the Rack,” September 10, 2026.

4 Ayar Labs, “Ayar Labs Closes $500M Series E, Accelerates Volume Production of Co-Packaged Optics,” March 3, 2026.

5 Ayar Labs, “Ayar Labs Unveils World’s First UCIe Optical Chiplet for AI Scale-Up Architectures,” March 31, 2025.

6 Ayar Labs, “Ayar Labs, with Investments from AMD, Intel Capital, and NVIDIA, Secures $155 Million to Address Urgent Need for Scalable, Cost-Effective AI Infrastructure,” December 11, 2024.

Private Shares Fund Top 10 Holdings  
As of 09/30/2026*

*Represents 53.13% of Fund holdings as of September 30, 2026. Holdings are subject to change. Not a recommendation to buy, sell, or hold any particular security. Current and future holdings are subject to risk. To view the Fund’s complete holdings, visit privatesharesfund.com/portfolio.

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Important Disclosure

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus with this and other information about The Private Shares Fund (the "Fund"), please download here, or call 1-855-551-5510. Read the prospectus carefully before investing.

The investment minimums are $2,500 for the Class A Share and Class L Share, and $1,000,000 for the Institutional Share

Investment in the Fund involves substantial risk. The Fund is not suitable for investors who cannot bear the risk of loss of all or part of their investment. The Fund is appropriate only for investors who can tolerate a high degree of risk and do not require a liquid investment. The Fund has no history of public trading and investors should not expect to sell shares other than through the Fund's repurchase policy regardless of how the Fund performs. The Fund does not intend to list its shares on any exchange and does not expect a secondary market to develop.

All investing involves risk including the possible loss of principal. Shares in the Fund are highly illiquid, and can be sold by shareholders only in the quarterly repurchase program of the Fund which allows for up to 5% of the Fund's outstanding shares at NAV to be redeemed each quarter. Due to transfer restrictions and the illiquid nature of the Fund's investments, you may not be able to sell your shares when, or in the amount that, you desire. The Fund intends to primarily invest in securities of private, late-stage, venture-backed growth companies. There are significant potential risks relating to investing in such securities. Because most of the securities in which the Fund invests are not publicly traded, the Fund's investments will be valued by Liberty Street Advisors, Inc. (the "Investment Adviser") pursuant to fair valuation procedures and methodologies adopted by the Board of Trustees. While the Fund and the Investment Adviser will use good faith efforts to determine the fair value of the Fund's securities, value will be based on the parameters set forth by the prospectus. As a consequence, the value of the securities, and therefore the Fund's Net Asset Value (NAV), may vary.

There are significant potential risks associated with investing in venture capital and private equity-­backed companies with complex capital structures. The Fund focuses its investments in a limited number of securities, which could subject it to greater risk than that of a larger, more varied portfolio. There is a greater focus in technology securities that could adversely affect the Fund’s performance. The Fund's quarterly repurchase policy may require the Fund to liquidate portfolio holdings earlier than the Investment Adviser would otherwise do so and may also result in an increase in the Fund's expense ratio. Portfolio holdings of private companies that become publicly traded likely will be subject to more volatile market fluctuations than when private, and the Fund may not be able to sell shares at favorable prices, such companies frequently impose lock-ups that would prohibit the Fund from selling shares for a period of time after an initial public offering (IPO). Market prices of public securities held by the Fund may decline substantially before the Investment Adviser is able to sell the securities.

The Fund may invest in private securities utilizing special purpose vehicles ("SPV"s), private investment funds (“Private Funds”), private investments in public equity ("PIPE") transactions where the issuer is a special purpose acquisition company ("SPAC"), and profit sharing agreements. The Fund will bear its pro-rata portion of expenses on investments in SPVs, Private Funds, or similar investment structures and will have no direct claim against underlying portfolio companies. PIPE transactions involve price risk, market risk, expense risk, and the Fund may not be able to sell the securities due to lock-ups or restrictions. Profit sharing agreements may expose the Fund to certain risks, including that the agreements could reduce the gain the Fund otherwise would have achieved on its investment, may be difficult to value and may result in contractual disputes. Certain conflicts of interest involving the Fund and its affiliates could impact the Fund’s investment returns and limit the flexibility of its investment policies. This is not a complete enumeration of the Fund's risks. Please read the Fund prospectus for other risk factors related to the Fund.

The Fund may not be suitable for all investors. Investors are encouraged to consult with appropriate financial professionals before considering an investment in the Fund.

Companies that may be referenced on this website are privately-held companies. Shares of these privately-held companies do not trade on any national securities exchange, and there is no guarantee that the shares of these companies will ever be traded on any national securities exchange.

The Private Shares Fund is distributed by FORESIDE FUND SERVICES, LLC

Last updated: October 2026

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