Palomino is a pre-revenue semiconductor startup developing microLED-based optical interconnects — devices that transmit data using light instead of copper wires. The core product under development is an optical transceiver built on gallium nitride (GaN) microLEDs, designed to replace copper-based connections inside AI servers, data centers, and HPC systems. Palomino's argument is that copper interconnects are hitting physical limits in bandwidth and power efficiency as AI workloads grow, and that its microLED approach offers a faster, smaller, and more energy-efficient alternative. Palomino also argues its approach is cheaper and simpler to manufacture than incumbent laser-based optical solutions, which require precise fiber alignment and expensive packaging. Palomino plans to operate as a fabless semiconductor company, outsourcing production to third-party foundries and selling optical transceiver modules directly to hyperscale data centers and AI server manufacturers. The company licenses foundational GaN microLED technology from UCSB. Palomino has no commercial customers, no revenue, and roughly 18 employees and consultants. The company raised ~$9.8M through a private placement tied to a reverse merger into a public shell in September 2025. Near-term, Palomino is working toward a prototype demonstrating 100 Gbps optical link performance and pursuing joint development agreements with data center operators and AI hardware vendors.