Italy Awards €211 Million to Camgraphic for Graphene Optical Chips Aimed at AI Data Centers

**TL;DR** Italy has awarded €211 million (about $249 million) to Camgraphic to build graphene‑based optical chips for AI data centers. The funding supports a pilot plant near Milan slated for 2028 and aims to ease data‑movement bottlenecks.

**Context** AI workloads are outpacing the speed at which data can move between processors and memory. Traditional silicon chips consume significant power and generate heat, limiting scalability. Camgraphic’s spin‑off from the University of Cambridge uses graphene to create optical interconnects that promise higher bandwidth, lower latency, and up to 80 % less energy consumption.

**Key Facts** - The Italian government’s grant totals €211 million, roughly $249 million, earmarked for developing graphene optical chips. - Ben Jensen, CEO of 2D Photonics (Camgraphic’s parent), said the technology addresses the AI data‑movement bottleneck by moving vastly more data with far less power. - Antonio Avitabile of Sony Ventures EMEA noted the investment highlights graphene photonics’ strategic value for Europe’s semiconductor ecosystem and could benefit automotive, telecom, and aerospace sectors. - Camgraphic previously raised €25 million from CDP Venture Capital, NATO Innovation Fund, Sony Innovation Fund, Join Capital, Bosch Ventures, Frontier IP Group, and Indaco Ventures. - The grant will fund a pilot manufacturing facility near Milan, expected to be operational by 2028, creating over 150 skilled jobs in photonics, materials science, and semiconductor manufacturing. - The chips operate across a range of temperatures without elaborate cooling systems.

**What It Means** If successful, the optical chips could reduce energy costs and improve performance for AI data centers, making large‑scale generative AI more sustainable. The pilot plant will test scalability and integration with existing semiconductor processes. Stakeholders will watch for milestones in 2026‑2028, including prototype validation, production ramp‑up, and early adopter partnerships in AI‑focused industries.