Morphotonics raises €40M+ to scale AI

Morphotonics has raised more than €40 million in a Series B funding round. The Netherlands-based deeptech company will use the capital to scale its manufacturing technology for optical components used in AI glasses and augmented reality devices.

Investors in the round include existing backers 3M Ventures, Innovation Industries, and BOM. The funding also features major new investor Invest-NL, with participation from the European Innovation Council Fund, Ernij Next, and the European Investment Bank.

The manufacturing bottleneck

The company is focused on solving a production challenge for waveguides. These transparent optical components project digital images into a wearer's field of vision and are essential for AI glasses and spatial-computing devices. Manufacturing them at consumer-electronics scale is currently slow, expensive, and difficult to adapt to different designs.

Morphotonics' solution is large-area nanoimprint lithography. This process uses a mould to press nano- and microscopic patterns into a liquid resin coating, which is then hardened with UV light. The technology aims to replicate micro- and nanoscale structures across large substrates with high precision.

Hugo da Silva, CEO of Morphotonics, highlighted the urgency of the problem. "Everyone is talking about AI glasses right now," he said. "AI is moving off the screen and into the real world, into glasses, spatial systems, and a new generation of intelligent devices."

Scaling the Cypris platform

Over the past year, the company has been developing its Cypris platform, which is designed specifically for high-volume waveguide manufacturing. Morphotonics is already working with device and component manufacturers in China, Taiwan, the United States, and Europe as they develop production processes for AI glasses and other optical systems.

The new funding will be directed toward increasing production capacity for the Cypris platform. It will also advance product development and allow the company to grow its engineering, commercial, and customer-support teams.

Broader applications and next steps

Beyond waveguides for wearable devices, the company's technology has potential applications in components for displays, sensors, and photonic systems. This includes optical technologies being developed for future computing and data-centre infrastructure.

According to the source, Morphotonics will also use the Series B capital to strengthen its supplier and manufacturing networks. A final key investment area will be building out its after-sales infrastructure to support the scaled deployment of its manufacturing platforms.