NVIDIA and Broadcom both started deploying CPO in switch products, signaling the tech's opportunity in early commercialization.
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As AI cluster deployments continue to scale, traditional copper interconnects and pluggable transceivers are facing critical limitations in the 3.2T data-rate era. Co-Packaged Optics (CPO) addresses these challenges by integrating optics directly with processing silicon, significantly improving power efficiency and enabling higher bandwidth density for AI networking.
While pluggable transceivers remain the dominant solution in scale-out architectures today, their energy efficiency lags behind CPO. As a result, leading vendors such as NVIDIA and Broadcom have begun adopting CPO in switch designs to enhance power efficiency and overall system resiliency.
Looking ahead, growth in the CPO market is expected to be primarily driven by scale-up applications. With the continued development of frameworks such as OSI MSA, the scale-up CPO segment is projected to surpass scale-out applications before 2030 and become the dominant market.
