Navitas Acquires Claros to Bolster AI Power Solutions

Navitas Semiconductor is set to significantly expand its footprint in the rapidly growing AI infrastructure market through the acquisition of Claros, a specialist in vertical power delivery (VPD) and integrated voltage regulator (IVR) technology. The deal, valued at up to approximately $232.8 million, positions Navitas to capture a larger share of the burgeoning AI power solutions sector, which is projected to more than double its addressable market to over $8 billion by 2030.

This strategic move extends Navitas' power architecture strategy from the grid level down to the processor itself, a critical evolution as AI accelerators demand increasingly sophisticated power management. Claros' innovative VPD and IVR systems are designed to place power conversion directly adjacent to or within high-performance processors like GPUs, CPUs, and NPUs. This proximity drastically reduces power transmission distances from inches to millimeters, promising enhanced transient response, lower impedance, improved efficiency, and ultimately, greater compute density – key enablers for next-generation AI hardware.

The integration of Claros' technology is expected to add a substantial $3.5 billion to Navitas' serviceable addressable market, complementing its existing strengths in gallium nitride (GaN) and silicon carbide (SiC) power semiconductors. This combined portfolio addresses the full spectrum of power needs for AI infrastructure, from the high-voltage grid connections to the ultra-precise power delivery required at the chip level. Navitas anticipates Claros' technologies to become a significant growth contributor starting around 2028 or 2029.

The transaction structure includes an initial payment of approximately $216 million at closing, comprising a mix of cash and Navitas Class A common stock. Additional payments, contingent on Claros achieving specific business milestones over the two years post-acquisition, will be settled in Navitas shares. Furthermore, certain key Claros employees are eligible for performance-based equity compensation totaling around $28.9 million, tied to the same success metrics.

This acquisition aligns with Navitas' broader "Navitas 2.0" transformation, aiming to deepen engagement with hyperscalers and AI power platform providers. The company's financial outlook and path to profitability remain unaffected by this strategic expansion. The deal has received unanimous approval from the boards of both companies and is slated for completion before the end of 2026, pending regulatory clearances and standard closing conditions.

The increasing power demands of AI processors, often requiring thousands of amps with rapid response times, have outpaced the capabilities of conventional power delivery modules. Claros' approach directly addresses this bottleneck. By bringing power conversion closer to the processing unit, the technology mitigates board-level distribution losses and reduces heat generation, leading to more efficient and cost-effective AI deployments. This synergy enhances Navitas' leadership in the critical AI infrastructure supply chain.