Ephos, a startup building glass-based photonic chips, has raised $8.5 million in a seed funding round and is opening a research and manufacturing plant in Italy.

It will use the proceeds of the funding round, which was led by VC fund Starlight Ventures, to scale up operations at its headquarters in Milan, Italy, and its US base in San Francisco.

The cash has already sped up the development of the research and manufacturing center in Milan, which will help Ephos deliver its chips, which it says can be used in quantum computing as well as for classical machines in data centers.

Andrea Rocchetto, CEO and co-founder at Ephos, said the fundraising was a “crucial step” for the company. “Our glass-based photonic chips are set to transform not just quantum computing and AI, but the broader computational infrastructure of the future,” he said.

“By addressing energy inefficiencies and enhancing performance across industries, from data centers to secure communications, we’re laying the foundation for the next generation of computing technology.”

Ephos designs and builds glass-based photonic chips, and claims its technology increases the speed and energy efficiency of advanced quantum computing, communications, and sensing devices.

Built on glass substrates, rather than silicon, the company’s chips reduce signal loss, which it says is one of the greatest hurdles to building a quantum computer. They can also be used in classical computing, and interest in the technology is growing as it matures. Earlier this year, TSMC launched a photonics roadmap, albeit one focused on silicon photonics.

The Ephos research and manufacturing facility is located in the Milano Innovation District, and will give the company the space and resources necessary to scale its proprietary chip manufacturing technology.

“We see tremendous potential in Ephos’s glass-based photonic chips to revolutionize the future of computing," said Kike Miralles, principal at Starlight Ventures. "As AI and quantum advancements challenge the limits of our current infrastructure, Ephos stands out with its ability to significantly reduce signal loss and improve energy efficiency.

“This innovation not only meets the growing demands for faster, more efficient platforms but also opens the door to new possibilities in quantum computing and communication technologies across multiple industries.”

In a separate development, Ephos has received funding from the European Innovation Council and NATO's Defence Innovation Accelerator, being chosen as one of 10 companies to receive funding from a pool of more than 1,300 applicants.