Palomino Laboratories Inc. Receives Its First Commercial Purchase Order From A Hyperscaler Customer For Gan Microled Communication Chips Supporting AI Optical Interconnects

(MENAFN- GlobeNewsWire - Nasdaq) Announcement Highlights:

(i) First purchase order (PO) from a strategic AI Customer marks a key commercial milestone in the Company's MicroLED optical interconnect business.

(ii) PO includes a statement of work (SOW) for delivery of ultra high-performance MicroLED chips designed specifically for AI optical interconnects.

(iii) Palomino is focusing on MicroLED performance, reliability and manufacturing supply chain to meet the current customer's stringent design requirements.

GOLETA, Calif., Oct. 22, 2026 (GLOBE NEWSWIRE) -- Palomino Laboratories, Inc. (OTCQB: PALX ) ("Palomino" or the "Company"), an artificial intelligence (AI) interconnect product company, today announced it has received its first purchase order (PO) from a strategic hyperscaler customer. The PO includes a statement of work (SOW) for the delivery of high-performance gallium nitride (GaN) MicroLED chips for optical interconnect applications within AI infrastructure.

The Company believes this initial PO represents validation of its core market thesis. Specifically, MicroLED technology originally designed for the display market is not optimized for optical interconnect applications and therefore must be engineered specifically for high-speed data. Subsequently, MicroLED chip performance must be tailored to AI data center link budgets and aligned to customer system requirements.

Under the SOW, Palomino expects to improve both nanomaterial and MicroLED design to increase output power and fiber coupling efficiency performance, consistent with the Company's technical roadmap. All other MicroLED technical parameters from Palomino's technology platform are compliant with the customer's target requirements.

Jeffrey B. Shealy, Co-Founder and CEO, commented:“This first commercial PO from our hyperscaler customer is a significant corporate milestone for Palomino. It confirms that leading AI infrastructure customers recognize that MicroLEDs for optical interconnects must be engineered for bandwidth, reliability and efficiency driven by the AI market.” Mr Shealy continued,“This SOW aligns directly with our AI interconnect product roadmap, and we are executing with urgency to deliver technical performance while addressing the manufacturing supply chain required for volume production.”

Dr. Steven DenBaars, Co-founder and Director of Palomino Laboratories, Inc. and pioneer of GaN MicroLED technology, added:“MicroLEDs are a powerful device platform and optical interconnect architectures impose very different performance constraints relative to those for display applications. Palomino's work is grounded in foundational GaN MicroLED innovation and protected by our IP portfolio that includes licence rights to University of California, Santa Barbara (UCSB) patents. This PO reflects growing customer recognition that novel material science and MicroLED device design are crucial to unlock the efficiency advantages needed for next-generation AI interconnects.”

Palomino believes the receipt of this first PO is consistent with, and supports, the Company's previously stated objective that it would secure a development contract from a strategic AI customer in Q4 FY26. The Company expects this work will further strengthen customer engagement and accelerate progress toward MicroLED-enabled optical interconnect solutions for short-reach AI systems.

About Palomino Laboratories
Palomino Laboratories is an artificial intelligence (AI) interconnect technology company headquartered in Goleta, California, developing next-generation connectivity solutions for the rapidly evolving AI infrastructure market. The Company's product focus addresses AI interconnect solutions in the 0-to-50 meters range and includes: (i) silicon chipsets enhancing the speed of copper, (ii) silicon optical integrated circuits (IC's) optimizing the performance of MicroVCSEL interconnects, and (iii) silicon and gallium nitride IC's for MicroLED interconnects. Our chipsets enable high-bandwidth, low-latency, and energy-efficient data movement across AI systems. Palomino's solutions are designed to support the growing performance demands of AI, high-performance computing (HPC), enterprise networking, hyperscale data centers and advanced robotics as increasingly intelligent systems require faster, more efficient, and more reliable data connectivity.

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Forward-Looking Statements
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For further information
Palomino Laboratories Inc.
Jeffrey B. Shealy, CEO
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