Lightmatter is developing an optical interposer technology called Passage, aiming to enhance AI performance by replacing electrical connections with fiber-optic links in processors. This innovation could significantly reduce energy consumption and improve data transfer speeds. Having raised $850 million, Lightmatter plans to implement Passage in customer systems by the end of 2025. As AI demands grow, the shift to photonic interconnects represents a critical evolution in computing, promising efficiency and increased processing capabilities.