GoPro is moving into the AI data center market through a EUR 246 million merger with optical-photonics firm Starman Optical, Inc. The combined company plans to manufacture U.S.-made optical transceivers for artificial intelligence data centers, marking a dramatic shift for the well-known action camera brand.
Under the terms of the agreement, Starman will pay GoPro shareholders EUR 246 million in cash, equal to EUR 1 per share, and will settle the company’s EUR 79 million in outstanding debt. Current GoPro investors will keep a 10% stake in the merged entity.
Why the Deal Matters for GoPro
The merger arrives at a critical moment. GoPro has faced declining sales and rising costs, leading the company to warn investors that there is substantial doubt about its ability to continue. The transaction is designed to stabilize the business and secure its financial future.
For Starman, the appeal lies in GoPro’s intellectual property. The action camera maker holds more than 2,500 patents along with imaging solutions, advanced optics, and related technologies. Although consumer cameras and data center hardware appear unrelated, they share core components such as imaging sensors and advanced lenses and optics.
Expanding Into Optical Transceivers and U.S. Manufacturing
The deal broadens GoPro’s portfolio to include optical transceivers, a product seeing rising demand as AI data centers shift to fiber optics for their networking needs. Beyond data centers, the company plans to move into defense, government, robotics, and aerospace, using its IP, optics, and imaging capabilities to serve growing demand for solutions built in the United States.
While GoPro has already shifted its manufacturing out of China to shield its supply chain from U.S. tariffs, it currently has no domestic production. The merger would establish manufacturing within American borders, helping to insulate the company from economic instability tied to unexpected tariff announcements. That domestic footprint could prove valuable as the FCC continues efforts to restrict foreign-made technology such as routers, LiDAR-equipped drones, and robots.
A Growing Trend Toward AI Infrastructure
GoPro is not the first company with little apparent connection to data centers to pivot in this direction. Footwear and apparel brand Allbirds made a similar move earlier this year, sending its stock up 580% before prices returned to pre-announcement levels.
The pull toward AI data centers reflects the sector’s enormous projected growth. Consulting firm PricewaterhouseCoopers estimates that investment in the technology could reach EUR 28 trillion by 2050.
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Image: tomshardware.com
