Optical modules have been replaced

Co-Packaged Optics (CPO) is poised to gradually replace traditional pluggable optical modules, with Linear Pluggable Optics (LPO) also emerging as a complementary solution.

Co-Packaged Optics (CPO)

CPO integrates optical components such as photonic integrated circuits (PICs) and lasers directly alongside switching ASICs or processors within the same package. This architecture significantly reduces electrical I/O distance, lowers power consumption, improves signal integrity, increases bandwidth density, and reduces latency compared to traditional pluggable optical modules . Nvidia and Broadcom are actively commercializing CPO, demonstrating superior energy efficiency, reliability, and scalability for AI data centers . CPO is particularly suited for ultra-high-speed interconnects in AI clusters, where massive data exchange between GPUs, switches, and memory systems demands high bandwidth and energy efficiency .

Linear Pluggable Optics (LPO)

LPO is an evolution of traditional pluggable modules that removes onboard digital signal processors, shifting signal compensation to the switch ASIC. This reduces module power consumption, lowers thermal load, and improves energy efficiency while maintaining pluggable flexibility . LPO is gaining traction in AI and hyperscale data centers as a simpler, lower-power alternative to conventional DSP-based optical modules, though it faces challenges with insertion loss at higher SerDes speeds .

Adoption and Coexistence

While CPO is expected to gradually replace pluggable optical modules in high-performance AI and hyperscale networks, both CPO and LPO are likely to coexist for the foreseeable future. CPO offers the highest performance and efficiency for integrated systems, whereas LPO provides a more flexible, modular approach that can be easier to deploy and service . Industry adoption is accelerating, with major vendors expanding production capacity and testing large-scale deployments .

Emerging Fiber Technologies

In parallel, multi-core and hollow-core fibers are being developed to support higher bandwidth and lower loss in data center and submarine networks. These fibers complement CPO and LPO by enabling higher single-fiber bandwidth and longer transmission distances with minimal signal degradation .

Key Takeaway

CPO represents the next-generation replacement for traditional optical modules in high-speed, energy-intensive environments, particularly AI data centers, while LPO serves as an intermediate, energy-efficient pluggable solution. Both technologies, along with advanced fiber types, are shaping the future of optical interconnects, offering higher performance, lower power consumption, and improved scalability.