GoPro to expand into AI data centers after $285 million merger with optical-photonics company — move to solve camera maker’s financial woes, move manufacturing back into the US

GoPro just announced a merger with Starman Optical, Inc., an optical-photonics company, saying that the deal would allow the combined entity to produce U.S.-made optical transceivers for use in AI data centers. According to the press release, Starman will pay shareholders $285 million in cash for the action camera company, amounting to $1.14 per share, and will also pay off its outstanding debt of $92 million. Despite that, current GoPro investors will retain 10% ownership of the post-merger company.

Starman said that the move will give it access to GoPro’s intellectual property, which amounts to more than 2,500 patents, as well as its imaging solutions, advanced optics, and other technologies that it has developed. This deal is crucial in keeping the camera company afloat, especially as it has recently faced declining sales and increasing costs, leading the camera maker to warn investors that there is “substantial doubt about the company’s ability to continue.”

On the other hand, the merger would expand GoPro’s portfolio to include optical transceivers, which are getting increased demand as AI data centers transition to fiber optics for their networking needs. Aside from data centers, the deal would also allow GoPro to expand into defense, government, robotics, and the aerospace industries, where it “intends to leverage its IP, optics, and imaging capabilities” to supply the increasing demand for solutions made within the U.S.

While GoPro has successfully moved its manufacturing out of China to protect its supply chain from U.S. tariffs, it still has no local manufacturing. So, this merger would allow it to have production within American borders and help isolate it from further economic instability brought about by surprise tariff announcements.

This could help it secure its future, especially as the FCC has recently been making moves to keep foreign-made tech like routers, LiDAR-equipped drones, and robots. It also makes sense for the two companies to partner — even though consumer action cameras and optical transceivers for data centers sound like they have nothing in common, they share a lot of technologies between them, like imaging sensors and advanced lenses or optics.

This isn’t the first company with seemingly no relation to data centers to expand or pivot towards it. Struggling shoemaker and apparel brand Allbirds pivoted towards it earlier this year, resulting in a 580% jump in its stock price after the announcement, although it has since settled back down to its pre-announcement prices. AI data centers are indeed a tempting investment, with consultancy firm PricewaterhouseCoopers saying that investment on the technology could hit $32 trillion by 2050.