Oriole Networks, a startup aiming to curb the massive energy consumption of AI data centers, has secured $22 million in a fresh funding round led by Plural. The round, which also saw reinvestment from UCL Technology Fund, XTX Ventures, Clean Growth Fund, and Dorilton Ventures, brings Oriole's total raised this year to $35 million.
Founded in 2023 out of University College London (UCL), Oriole Networks is pioneering a solution to one of AI’s biggest challenges: sustainability. The company uses advanced photonics technology—harnessing light to speed up AI training while cutting down energy usage. This approach allows Large Language Models (LLMs) to be trained up to 100 times faster, with significantly lower power consumption. Oriole’s innovation addresses the growing strain on energy grids caused by the increasing demand for data centers, especially in the US and Europe.
AI’s energy demands are becoming a major environmental concern. A recent report highlighted that ChatGPT alone consumes enough energy to power Gibraltar for an entire year. According to Stanford University, a single ChatGPT query uses over 25 times more energy than a Google search. With AI computing power expected to increase by more than a million times over the next five years, energy usage in data centers could skyrocket. Rhodium Group research predicts that if demand triples by 2035 and clean energy sources can’t keep up, power sector emissions could increase by 56%.
Oriole's breakthrough could dramatically reduce this impact. By combining optical networks and AI chip processing power, their solution cuts latency, accelerates training times, and significantly lowers the energy footprint of AI infrastructure.
James Regan, CEO of Oriole Networks and former head of EFFECT Photonics, leads the company alongside founding scientists Professor George Zervas, Alessandro Ottino, and Joshua Benjamin, who developed the core IP over two decades of research at UCL. The leadership team, which includes experts from Lumentum and XTX Markets’ venture arm, boasts unparalleled experience in the photonics and AI sectors. XTX, known for running one of the world’s largest GPU clusters, brings significant support to Oriole's mission.
“This funding marks a major milestone for us,” said Regan. “AI is growing rapidly, and the industry is desperate for solutions that can meet this demand sustainably. Our goal is to create an ecosystem of photonic networking that reshapes how AI runs, reduces bottlenecks, and boosts competition at the GPU layer.”
Ian Hogarth, partner at Plural and Oriole’s newest board member, echoed Regan’s sentiment. “This team is translating 20 years of photonics research into tangible innovation for AI infrastructure. Their work signals a significant shift in how networked systems can operate—reducing latency while slashing the environmental impact of the data centers we rely on.”
The latest funding will fuel Oriole’s growth, enabling the company to scale up its team and strengthen its engagement with high-volume suppliers. By 2025, Oriole aims to have early-stage products in customers’ hands, laying the groundwork for a new era of photonic AI networks.
As AI’s demand for computing power continues to grow, Oriole Networks is positioning itself as a critical player in solving the sustainability challenges of the future.
