DARPA launches PICASSO program offering $35M to researchers who can overcome fundamental physics limitations in photonic circuits, aiming to create light-based computing systems that could revolutionize AI workloads by eliminating the electronic bottlenecks that currently hamper photonic technology.
The Defense Advanced Research Projects Agency is betting big on a future where computers process information with light rather than electricity, offering up to $35 million to researchers who can solve what the agency calls "fundamental physics problems" that have kept photonic computing from reaching its potential.

The PICASSO program (Photonic Integrated Circuit Architectures for Scalable System Objectives) represents DARPA's latest push to move beyond the incremental improvements that have characterized photonic circuit development for decades. The agency's frustration is palpable in its recent solicitation, which bluntly states that despite years of research, "systems incorporating photonic circuits struggle to show significant system-level performance advantages over electronic systems."
The Promise and the Problem
Photonic computing offers tantalizing advantages for artificial intelligence workloads. Light can carry more information faster than electricity, with less heat generation and lower energy consumption. The bandwidth potential is enormous - optical signals can transmit data at rates that would require massive electronic infrastructure to match.
Yet today's photonic circuits remain largely confined to specialized applications. They excel at specific linear mathematical operations but falter when asked to perform the complex, iterative calculations that power modern AI systems. The fundamental issue, as DARPA explains, isn't a lack of clever engineering - it's the immutable laws of physics.
Two Fundamental Barriers
DARPA has identified two critical limitations that have proven resistant to conventional solutions:
Signal Degradation and Noise Amplification
Unlike electronic circuits that can regenerate signals and filter out noise, photonic circuits suffer from optical attenuation that cannot be simply amplified away. Any attempt to boost optical signals inevitably amplifies the accompanying noise, creating an insurmountable signal-to-noise ratio problem that worsens with each additional component in a circuit.
Spurious Wave Interference
Light waves are notoriously difficult to control precisely. Over multiple components, issues like scattering, coupling, mode leakage, back reflections, and unwanted resonance accumulate unpredictably. When combined with manufacturing variability and environmental factors like temperature fluctuations, these errors become impossible to compensate for using current approaches.
The result is that photonic circuits must constantly convert optical signals to electronic ones to interface with other system components. This conversion eliminates the nanosecond latency advantage of light, replacing it with millisecond delays from electronic processing - a performance degradation of approximately one million times.
A New Approach to an Old Problem
Rather than waiting for new photonic components to be invented, DARPA wants researchers to work with existing technology but rethink how circuits are designed at a fundamental level. The agency is explicitly rejecting the industry's current focus on component-level improvements in favor of circuit-level architectural innovations.
"Drawing inspiration from modern electronics, in which clever circuit design overcomes the limitations of individual transistors, the program will foster innovative circuit-level strategies to achieve unprecedented system performance and stability," DARPA stated in its solicitation.
The approach mirrors how electronic computing advanced: not through better transistors alone, but through increasingly sophisticated circuit designs that could work around individual component limitations. DARPA believes a similar paradigm shift could unlock photonic computing's potential.
The Challenge Timeline
Researchers have until March 6 to submit proposals for the first phase of PICASSO, which will run for 18 months beginning in July. During this initial period, DARPA expects participants to demonstrate "predictable performance of photonic circuits" - essentially proving that their architectural approaches can overcome the fundamental physics limitations.
Phase 2, another 18-month period, will focus on demonstrating "generalized circuit functionality" - showing that the approaches can handle a wide range of computing tasks beyond simple linear operations.
The entire program is budgeted at approximately $35 million, to be distributed across multiple awards. This represents a significant investment in what DARPA acknowledges is a high-risk, high-reward endeavor.
Why It Matters for AI
The stakes extend far beyond academic interest. As AI models grow increasingly complex and computationally intensive, the limitations of electronic computing become more apparent. Training large language models, running complex simulations, and processing massive datasets all push against the physical limits of silicon-based systems.
Photonic computing could provide the computational leap needed to continue AI advancement without requiring exponentially larger data centers and power consumption. The energy efficiency gains alone could be transformative for an industry where training a single large AI model can consume as much electricity as hundreds of households use in a year.
The Broader Context
DARPA's push comes amid growing interest in alternative computing architectures. Companies like Intel, Broadcom, and Nvidia have all invested in silicon photonics, though with varying degrees of optimism. Intel recently divested its silicon photonics business to Jabil, while Nvidia continues to develop photonic switches for data center interconnects.
STMicroelectronics recently announced a partnership with AWS to develop 1.6 Tbps pluggable optics, demonstrating that commercial interest in photonic technologies remains strong despite the technical challenges.
The PICASSO program represents perhaps the most ambitious attempt yet to solve the fundamental physics problems that have kept photonic computing in the laboratory rather than the data center. Whether researchers can deliver on DARPA's ambitious timeline and budget remains to be seen, but the potential rewards - both for national security applications and commercial AI development - are enormous.
For researchers in photonics, quantum computing, and advanced materials, the March 6 deadline represents a rare opportunity to tackle one of computing's most persistent challenges with substantial backing from one of the world's most forward-thinking research organizations. The question isn't whether photonic computing will eventually overcome its limitations, but whether these researchers can do it within DARPA's ambitious timeframe and budget.
As the agency itself notes, the primary limitation isn't technological readiness but rather our inability to work around the fundamental properties of light itself. Solving that problem could redefine the boundaries of what's computationally possible.

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