NTT to lead fund to accelerate investment in optical communications

NTT Corporation announced on June 10 that it will establish an investment fund backed by more than 20 domestic and international companies to accelerate the spread of the next-generation communications standard “IOWN” that uses optical technology. NTT will lead the effort to raise approximately 80 billion yen (about US$540 million) and will invest primarily in startups in the United States. The aim is to leverage the knowledge and experience of the fund’s participants to further improve the performance of IOWN, which enables energy-efficient, high‑speed, large‑capacity communications.

In addition to three major Japanese banks (Mitsubishi UFJ Bank and others), Sony Group, Toshiba, KDDI and other Japanese firms, overseas companies including South Korea’s Samsung Electronics also plan to invest. NTT itself will contribute 16 billion yen. The fund will be based in Silicon Valley and will invest in cutting‑edge companies in optical technology and artificial intelligence (AI).

NTT expects that as generative AI becomes more widely used, driving demand for high‑speed, large‑capacity communications, business opportunities for IOWN will expand. Through cooperation with the fund’s investees, NTT aims to promote the spread of IOWN.

At a press conference in Tokyo, NTT President Akira Shimada said, “We will build a new industrial foundation that can support the AI era.”