Fabric.AI Inc. (NASDAQ: FABC) announced it expects to demonstrate its Neural I/o MicroLED-based optical interconnect platform by the end of 2026. The AI infrastructure company is developing the technology in partnership with Kopin Corporation (NASDAQ: KOPN).

The Neural I/o platform addresses data movement between GPUs, accelerators, memory systems, and servers in AI data centers. Fabric.AI stated it has entered two non-disclosure agreements with chipmakers to discuss potential applications and integration opportunities for the technology.

The company reported approximately $30 million in cash and cash equivalents, which it believes will fund operations through the planned Neural I/o demonstration milestone.

"AI is creating one of the largest infrastructure buildouts in modern history, and interconnect technology sits directly at the center of that expansion," said Josh Silverman, Fabric.AI Chief Executive Officer. "The industry increasingly understands that AI performance is no longer determined solely by compute. It is determined by how efficiently data can move throughout the system."

Fabric.AI claims MicroLED-based interconnect architectures may offer advantages over traditional copper and laser-based solutions, including lower power consumption, reduced latency, improved thermal efficiency, greater density, and enhanced scalability for AI environments.

Silverman stated the company believes the market opportunity for AI interconnects could exceed $100 billion annually. The Neural I/o platform represents the first product initiative in Fabric.AI's strategy to develop semiconductor technologies for AI data centers.

The information is based on a company press release statement.