Shares of POET Technologies (NASDAQ: POET) surged 16% on Thursday following the announcement of a supply and joint-development agreement with Lumilens, a developer of optical interconnects for AI infrastructure. The deal includes an initial $50 million purchase order for optical engines designed for AI data-center networks, with the companies projecting that cumulative purchases could exceed $500 million over the next five years.
The agreement targets the growing demand for optical interconnects in AI clusters, where massive data transfers between GPUs, memory, and switches require faster and more efficient hardware. POET and Lumilens are collaborating on an Electrical-Optical Interposer (EOI), a wafer-level platform that integrates electronic and photonic components more tightly, aiming to shrink optical engines to chip-like form factors for scalable manufacturing.
Lumilens, backed by venture capital firms Mayfield and Spark Capital, is developing optical links for both scale-up and scale-out AI infrastructure. Scale-up interconnects connect processors within a single compute cluster, while scale-out links bridge multiple clusters in larger data-center networks. The partnership leverages Lumilens' chipset and manufacturing expertise with POET's wafer-level photonic integration technology.
Under terms of the deal, Lumilens received a nine-year warrant to purchase up to 22,921,408 POET common shares at $8.25 each. Of those, 2,292,140 shares are immediately exercisable, with the remainder vesting based on future purchase orders up to $500 million. The product lineup spans from 800G and 1.6T pluggable transceivers to near-package and co-packaged optics, which reduce power consumption and latency by moving optical data closer to switches or processors.
However, the path to revenue remains lengthy. First engineering samples are not expected until late 2026, with production targeted for 2027. Revenue from the Lumilens purchase orders is contingent on development milestones, including successful builds, module qualification, and manufacturing scale-up. The warrant could lead to dilution if exercised, but that is tied to future purchase payments.
The agreement comes on the heels of a setback in April, when Marvell Semiconductor canceled all Celestial-related purchase orders with POET after acquiring Celestial AI, citing alleged violations around confidential purchase-order and shipping details. POET stated it would focus on other clients, highlighting a separate order valued at approximately $5 million.
POET remains a small player relative to its target markets. In the fourth quarter of 2025, the company reported just $341,202 in product and non-recurring engineering revenue, coupled with a net loss of $42.7 million. It also raised $225 million during the quarter and an additional $150 million in January, providing a financial cushion for its development efforts.
For now, the Lumilens deal gives POET a new customer commitment and strengthens its narrative after the Celestial AI stumble. But the tougher tests lie ahead: sample delivery in late 2026, customer qualification, and ultimately, the ability to ramp up production in 2027. Execution will be key to turning this agreement into sustainable revenue.
