Navitas to acquire Claros for up to $232.8m in grid-to-xPU push
Navitas Semiconductor (Nasdaq: NVTS) has signed a definitive agreement to acquire Claros, Inc., a power management startup developing vertical power delivery (VPD) and integrated voltage regulator (IVR) technology for AI data centres. The deal is valued at up to approximately $232.8 million, comprising around $216 million payable at closing in a mix of cash and Navitas stock, with the remainder contingent on Claros hitting specified business milestones in the two years after close.
Claros was founded in 2024 and is backed by General Catalyst, Red Cell Partners, Systemiq Capital and VIPC. The transaction has been unanimously approved by both companies' boards and is expected to close before the end of 2026, subject to regulatory approvals and customary conditions.
The technology case
The central problem Navitas is trying to solve is what it calls the "power wall" in AI compute. Today's high-performance xPUs, including GPUs, TPUs and other accelerators, can require thousands of amperes at sub-volt levels, and existing voltage regulator modules deliver that current laterally across a circuit board. As processor power densities climb, that lateral path introduces latency, heat and efficiency losses that constrain overall system performance.
Claros' VPD and IVR technologies address this by stacking power conversion, passives and control circuitry into a compact module placed directly beneath or inside the chip package. Power travels millimetres rather than inches, cutting impedance, improving transient response and increasing efficiency at the processor level.
Navitas' existing portfolio centres on gallium nitride (GaN) and high-voltage silicon carbide (SiC) semiconductors suited to the upstream stages of data centre power conversion, including the emerging 800-volt high-voltage direct current (HVDC) rack architecture. Claros plugs the final conversion step, meaning the combined company would offer components spanning the full chain from grid connection to processor core.
Chris Allexandre, President and CEO of Navitas, said: "Combining Claros' VPD and IVR technologies with Navitas' GaN and high-voltage and ultra-high voltage SiC portfolio, we break the AI infrastructure power wall, advancing the entire power chain from grid-to-xPU."
Market and competitive context
The deal would more than double Navitas' identified 2030 serviceable addressable market to over $8 billion, the company says, adding at least $3.5 billion attributable to VPD and IVR alongside its existing $3.5 billion GaN and SiC estimate and approximately $1 billion from junction field-effect transistor technology. These are forward-looking market-sizing figures and carry material uncertainty.
Power delivery for AI infrastructure has become a fiercely contested segment as hyperscalers and cloud builders push rack densities toward megawatt scale. Navitas competes in wide-bandgap semiconductors against established players including Wolfspeed and onsemi in SiC, and Infineon and STMicroelectronics across both GaN and SiC. The VPD and IVR niche is less mature but attracts growing attention from both chip companies and specialist startups, given the performance ceiling that conventional voltage regulator modules impose.
The broader shift to 800V HVDC rack architecture in AI data centres, a trend endorsed by several large rack-scale solution vendors, favours wide-bandgap semiconductors throughout the power chain. Navitas is positioning itself as one of the few vendors able to supply proprietary silicon at every stage of that chain, which could simplify qualification cycles for hyperscaler procurement teams and deepen customer lock-in.
Navitas said its existing financial model and profitability timeline are unchanged in the near term, with Claros technology expected to contribute incremental revenue from 2028 to 2029 onward. Integration risk, milestone-payment structure and the relatively early commercial stage of Claros will be key areas of scrutiny for investors reviewing the deal.