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I read somewhere that if we increase the temperature of the material in a laser diode the threshold current for lasing also increases. Can someone explain to me why is this happening? What is the mechanism inside the diode behind this increase?

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Phrase to google: "thermal noise" –  dmckee Feb 16 '12 at 21:05

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"The increase in operating temperature increases the threshold current of the device — more drive current is needed to turn on the LASER diode. This phenomenon is attributed to the fact that as temperature increases, the nonradiative processes in the device would increase and compete with the system for photons. Thus, the threshold current increases with temperature." (http://www.askkia.com/articles/what-is-a-diode.html )

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