Goleta-based Kaai, the stealthy, Khosla Ventures-backed startup started by blue LED inventor Shuji Nakamura, announced this morning that it is developing green laser diodes. The firm said it is displaying green laser diodes at 523nm, based on INGaN semiconductor technology, as well as blue laser diodes privately at CES. The new laser diodes are being targeted at consumer projection displays, the defense market, biomedical instrumentation, and industrial imaging. Kaai was founded by Nakamura, and UCSB professors Steven Denbaars and James Speck. Kaai said it is now operating a laser diode fabrication facility in Santa Barbara.