Aeva Technologies (Nasdaq: AEVA) has launched a new business unit called Optical Connectivity, targeting artificial intelligence data centers with its high-power optical source and silicon photonics technology, according to a company press release.

A leading provider of high-speed optical engines for AI data centers has signed a joint development agreement with Aeva to integrate its high-power optical sources into a new module intended for deployment by an unnamed major hyperscaler. Initial deployment is targeted for the second half of 2027, with a production ramp targeted for 2028.

The new unit will offer on-chip integrated lasers and External Laser Small Form Factor Pluggable Source solutions for Near Packaged Optics and Co-Packaged Optics applications. Aeva says the technology was developed over the past decade for automotive and industrial applications.

Pradeep Srinivasan, previously Aeva's VP of Photonics, has been elevated to Senior VP to lead the Optical Connectivity group.

"The rapid expansion of AI infrastructure is driving unprecedented demand for high-performance optical connectivity," said Soroush Salehian, Co-founder and CEO of Aeva. "By launching Optical Connectivity, we are bringing our differentiated technology to a critical new market."

Aeva said it is also engaged with multiple additional potential customers for data center applications. The company did not disclose financial terms of the joint development agreement.