Co-Packaged Optics (CPO) is emerging as a transformative solution. By integrating optical engines closer to switch ASICs and GPUs through advanced packaging approaches such as 2. 5D and 3D integration, CPO enables higher bandwidth density and improved energy efficiency. According to LightCounting, sales of lasers and photonic integrated circuits for optical transceivers are expected to grow from $2. 9B by 2029, fueled largely by AI data centers. Read on to learn key CPO trends shaping AI systems in 2026 and the challenges designers will need to. As datacenters strive to meet escalating demands for efficiency and bandwidth, particularly with the integration of AI and ML technologies, optics is poised to play a crucial role in shaping the future of interconnect architecture and performance. The increasing investment in innovative. The rise of co-packaged optics (CPO) is transforming modern data centers and high-performance networks by addressing critical challenges such as bandwidth density, energy efficiency, and scalability.
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