POET Technologies Inc. has entered into securities purchase agreements with institutional investors for a registered direct offering expected to generate approximately $150 million in gross proceeds. The company, which provides highly integrated optical engines and light sources for artificial intelligence networks, will offer 20,689,656 common shares in the transaction scheduled to close on or about Jan. 23, 2026, subject to customary closing conditions.
The funding represents a significant capital infusion for POET's corporate development initiatives, including targeted acquisitions, expanded research and development, acceleration of its high-speed optical module and light source businesses, operational expansion, and general working capital. This financial backing comes at a critical time as demand for AI infrastructure continues to grow exponentially, creating bottlenecks in data communication systems that POET's technology specifically addresses.
POET's technological significance lies in its POET Optical Interposer platform, a patented solution that enables seamless integration of electronic and photonic devices into a single chip using advanced wafer-level semiconductor manufacturing techniques. This integration capability is particularly important for AI systems where traditional approaches struggle with bandwidth limitations and latency issues. The company's products are designed to be lower cost, consume less power, and be smaller in size than comparable solutions while remaining scalable to high production volumes.
The company's focus on high-speed optical engines and modules for AI clusters and hyperscale data centers addresses a fundamental challenge in artificial intelligence infrastructure: the need for faster, more efficient data transfer between processing units. POET has developed novel light source products specifically for chip-to-chip data communication within and between AI servers, targeting what the company identifies as "the next frontier for solving bandwidth and latency problems in AI systems."
Beyond AI applications, POET's Optical Interposer platform has broader implications across communication, computing and sensing applications where device integration presents challenges. The company maintains operations in Singapore, Penang, Malaysia and Shenzhen, China, with headquarters in Toronto, Canada. More information about POET is available on their website at https://www.poet-technologies.com.
Titan Partners, a division of American Capital Partners, is acting as sole placement agent for the offering, which is being conducted pursuant to an automatic shelf registration statement on Form F-3 that became effective Jan. 22, 2026. The transaction's timing coincides with increasing industry recognition that optical integration technology will play a crucial role in enabling next-generation AI systems to overcome current performance limitations.
This funding round positions POET to capitalize on growing market demand for optical solutions in AI infrastructure. As artificial intelligence models become increasingly complex and data-intensive, the industry faces mounting pressure to develop more efficient communication pathways between processing elements. POET's approach to photonic integration represents a potential solution to these challenges, with implications for reducing energy consumption in data centers while improving computational performance across AI applications.
