A 980 nm diode laser, whose performance satisfies the requirements for pumping Er3+-doped optical fiber amplifiers, is described. The device is grown by atmospheric pressure organometallic vapor phase epitaxy, and contains a strained, step-graded In0.25Ga0.75As/ AIGaAs single quantum well active region. The threshold current of the ridge-waveguide laser is 8 mA, and a CW power output of 125 mW is demonstrated, with a differential quantum efficiency of 59%. © 1990 IEEE