Co-packaged optics integrates photonic engines directly with switch ASICs and AI accelerators, cutting power draw and latency at the board level. This article explains how CPO works, how it compares to pluggable and near-packaged optics, and what its benefits and challenges are. 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. Co-packaged optics. Co-Packaged Optics (CPO) is a technology and design approach where optical components, such as lasers and photodetectors, are integrated alongside electrical components, like Application-Specific Integrated Circuits (ASICs), within the same package. CPO is widely regarded as a promising. Rail-optimized topologies become feasible when port density and power envelopes align, a balance enabled by co-packaged optics.
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