Inside AI's Optical Revolution

Nikkei Asia
Nikkei AsiaJun 9, 2026

Why It Matters

By replacing copper with on‑board optics, AI data centers can scale performance while cutting power and space costs, a critical advantage as model sizes and compute demands explode.

Key Takeaways

  • Optical co‑package optics replace copper in AI switch trays
  • Integrated optical engines sit beside the main switch chip
  • Bandwidth rises while power consumption and latency drop
  • Fewer cables free space and simplify data‑center design
  • CPOS will underpin next‑gen AI supercomputers

Summary

At Computex in Taipei, the world’s premier AI‑hardware showcase, reporters highlighted a fundamental shift in data‑center architecture known as optical transformation or co‑package optics (CPOS).

Traditional AI switches, such as Nvidia’s, relied on copper interconnects and external transceivers to move data between GPUs, CPUs and servers. CPOS integrates tiny optical engines directly beside the main switch silicon, converting electrical signals to light on‑board and eliminating most internal copper wiring.

The on‑chip optics deliver dramatically higher bandwidth, lower power draw, reduced latency and a cleaner layout—no bulky front‑panel transceiver modules, fewer cables, and more usable tray space. The presenter noted that this integration is poised to become a core component of the next generation of AI supercomputers.

For operators, the technology promises faster model training, lower operating costs and simplified rack designs, accelerating the rollout of ever‑larger AI workloads and giving vendors a competitive edge in the fast‑moving AI infrastructure market.

Original Description

AI's optical revolution is underway.
At Computex in Taipei, we got a close look at co-packaged optics, a technology replacing copper connections inside AI data centers.
Industry leaders see it as a key building block for the next generation of AI supercomputers.
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