Co-packaged optics, optical fiber, and silicon photonics enabling AI cluster interconnects.
Hyperscaler AI cluster bandwidth requirements are outpacing what pluggable optics can deliver. Co-packaged optics reduce power consumption 30–50% and eliminate SerDes bottlenecks at 1.6T and 3.2T switch speeds — making CPO mandatory for next-generation AI fabric switches.
AI-optimized data centers require 16–36× more fiber than conventional cloud facilities. Meta signed a $6B supply agreement with Corning in January 2026; Amazon struck a separate multibillion-dollar Corning deal in June 2026. Corning disclosed two additional unnamed hyperscaler deals in Q1 2026 earnings — total fiber commitments from hyperscalers in H1 2026 exceeded $12B.