Celestial AI has successfully secured $250 million in a Series C1 funding round, led by Fidelity, pushing its valuation to $2.5 billion. This funding aims to enhance the company's innovative Photonic Fabric technology, which addresses the challenges of separating compute power from memory, thereby improving AI infrastructure efficiency. The recent investment comes almost a year after Celestial AI raised $175 million in a Series C round led by the US Innovative Technology Fund. Other notable investors in this round include BlackRock and Tiger Global, underscoring the growing interest in optical interconnectivity solutions in the AI sector. The new capital will be used to further develop technologies that aim to reduce AI computing power requirements and revolutionize data transfer capabilities.