As AI clusters become larger and GPUs become faster, networking and optical communication are becoming just as important as the compute hardware itself. Copper connections consume too much power and suffer from signal loss at very high speeds, so the industry is gradually moving toward optical interconnects. TrendForce forecasts the combined CPO/NPO market could grow from roughly $100 million in 2025 to over $39 billion by 2030, illustrating how strategic this technology is expected to become.

AI isn't just becoming a compute problem anymore—it's becoming a networking problem. Faster GPUs don't help much if data can't move between them efficiently, so it's not surprising to see optical interconnects becoming a strategic technology for future AI data centers.

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