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World desk7 min

Optical Illusion: Is Co-Packaged Optics the Savior the Data Center Industry Has Been Waiting For?

Co-packaged optics shortens the electrical path inside AI switches and can cut link power, but the big numbers come from vendors and the deployment hurdles are real.
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Co-packaged optics (CPO) is a credible engineering answer to one real bottleneck: the electrical path between a switch chip and its optical modules. It is most promising for dense AI and high-performance computing fabrics. It is not yet the universal fix for data-center networking. Most headline figures come from the vendors selling the technology, the deployment burdens around cooling, assembly, fiber cabling and service are substantial, and the switches that would bring CPO into mainstream fabrics are, in the vendor announcements this article draws on, planned products rather than confirmed shipments.

What co-packaged optics changes

In a conventional switch, the switch ASIC sends high-speed electrical signals across the circuit board and through connectors to a pluggable optical module at the front panel. That module converts the electrical signals into light. Co-packaged optics moves the conversion point next to the switch silicon. Optical engines sit in the same package or on a closely integrated substrate, and optical fibers carry the light out of the package.

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This is a change to packaging and system design, not simply a faster transceiver. The shorter electrical run is where the claimed savings in loss and power come from. The same change also moves the optics away from the easy-to-reach faceplate, and that shapes most of the operational questions discussed below.

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Question Pluggable optics Co-packaged optics
Where electrical-to-optical conversion happens At a front-panel module, after board traces and connectors Beside or inside the switch package, next to the ASIC
Electrical path to the optics Longer; crosses board routing and connectors Shortened. NVIDIA’s comparison puts electrical loss at as much as 22 dB for 200 Gb/s channels in a pluggable design, versus approximately 4 dB with CPO
Replacing a failed optical part Swap an individual faceplate module, which is comparatively easy An optical engine fault can involve the switch package or the whole system. The sources reviewed do not establish a repair strategy
Thermal constraint Not stated in the sources reviewed Optical engines sit near high-power switch silicon. NVIDIA’s announced photonics switches are liquid cooled
Manufacturing burden Not stated in the sources reviewed Optics, electronics, fiber interfaces and switch silicon must be assembled and qualified together

Why the electrical path is becoming the constraint

NVIDIA’s August 18, 2025 technical blog describes AI-factory topologies that move switches toward the end of a row. That increases the distance between servers and switches, so more of the links must be optical. At the same time, higher link speeds and greater bandwidth density push the electrical path toward its limits. Under those conditions, the power and signal-integrity cost of carrying data electrically to the faceplate grows, and CPO becomes worth serious evaluation.

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  • [Easy to Use] Easy installation, plug and play, fully hot-pluggable with ESD protection. Widely used in network switch, server, or NIC with SFP+ to a 10 Gigabit fiber channel network with multimode LC for Network Attached Storage(NAS), Storage Area Network(SAN), and High Performance Computing(HPC) applications.
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The same logic does not carry over automatically to every network. Enterprise and general-purpose traffic with modest port counts may never reach the density at which the electrical path becomes the binding cost. CPO is a targeted answer to a specific problem.

What the published numbers show, and who published them

Every figure below comes from the vendor that reported it. None is an independent, industry-wide measurement, and none is an installed-base or market-share figure. Each one describes a single vendor comparison under the conditions that vendor chose.

NVIDIA: electrical loss, interface power and platform comparisons

NVIDIA’s August 2025 post compares a pluggable architecture with CPO for 200 Gb/s channels. It reports electrical loss falling from as much as 22 dB to approximately 4 dB, and interface power falling from often 30 W to as low as 9 W. For its platforms, NVIDIA also reports 3.5x power efficiency, 10x resiliency and 1.3x faster time-to-operation. Attribute these to NVIDIA when you quote them, and do not present them as measurements made by an independent party.

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  • 10GBASE-SR SFP+ to LC Optical 10 Gigabit Ethernet Fiber transceiver module, 10GbE Multimode SFP+(compatible with both 62.5um and 50um LC cables; supports OM1/OM2/OM3/OM4 fiber cables), Duplex LC connector, 850nm, DDM, up to 300m.
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  • [Easy to Use] Easy installation, plug and play, fully hot-pluggable with ESD protection. Widely used in network switch, server, or NIC with SFP+ to a 10 Gigabit fiber channel network with multimode LC for Network Attached Storage(NAS), Storage Area Network(SAN), and High Performance Computing(HPC) applications.
  • [Durable & Low Power Consumption] Adopt high quality alloy, the shell is strong and wear-resistant; Low power consumption(less than 1.05watt) and low EMI emission design. SFP MSA Compliant, IEEE 802.3ae Compliant. Operating Temperature: 0°C to 70°C.
  • [What you Get] 4x 100% tested 10GBase-SR modules, 3-Year warranty and lifetime tech support.

Broadcom and Meta: the link-flap milestone

On October 1, 2025, Broadcom reported one million cumulative 400G-equivalent port device hours without a link flap in Meta testing. Broadcom says its data show a 65 percent reduction in optics power compared with pluggable solutions. The release describes a high-temperature lab characterization environment, so the milestone is a bounded test result and not a field-wide reliability figure. Near Margalit, vice president and general manager of Broadcom’s Optical Systems Division, said: “Achieving one million link flap-free hours is a strong validation of Broadcom’s commitment to quality and innovation.” That is an executive’s comment on the company’s own milestone.

Broadcom: third-generation CPO at 200G per lane

Broadcom announced third-generation CPO technology with 200G-per-lane capability on May 15, 2025, in a company announcement. The announcement describes work on outsourced semiconductor assembly and test (OSAT) processes, thermal design, handling, fiber routing and yield. Those topics show that manufacturing is part of the product itself. The 200G-per-lane figure is a capability the company states, not an independently verified specification.

Product timing: announced, not yet confirmed

NVIDIA’s August 2025 post gave planned availability of early 2026 for its Quantum-X InfiniBand photonics switches, and the second half of 2026 for its Spectrum-X Ethernet photonics switches. Those were forward-looking dates when published. The announced configurations are:

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  • 1000BASE-LX/LH SFP to LC Optical Gigabit Ethernet Fiber transceiver module, 1.25G Singlemode MiniGBIC SFP(supports OS1/OS2/OS3 fiber cables), Duplex LC connector, 1310nm, DDM, up to 13km.
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  • [Easy to Use] Easy installation, plug and play, fully hot-pluggable with ESD protection. Widely used in fiber switches, routers, NIC, server or other fiber optic equipments with 1Gbps SFP ports. SFP MSA Compliant, IEEE 802.3ab Compliant.
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  • Quantum-X: 115 Tb/s with 144 800 Gb/s ports
  • Spectrum SN6810: 102.4 Tb/s with 128 800 Gb/s ports
  • Spectrum SN6800: 409.6 Tb/s with 512 800 Gb/s ports

The early-2026 window has now passed, but the sources available for this article do not confirm whether these switches are shipping in volume. Until the vendor or an independent customer confirms general availability, read these as announced configurations rather than products in production.

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Six deployment problems that headline numbers do not settle

The issues below determine whether CPO works in a real facility. A better loss or power figure does not resolve any of them.

1. Thermal management

Optical engines close to high-power switch silicon add thermal design constraints. The Open Compute Project’s June 2025 webinar agenda explicitly included the role of liquid cooling in CPO clusters, and NVIDIA’s announced photonics switches are liquid cooled. Cooling therefore becomes part of system design and operating cost, and the facilities team has to be involved from the start. See the OCP educational webinar page for the session description.

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  • 2. Versatile Compatibility: Featuring an LC/UPC interface and supporting a range of multi-mode fiber types (OM1, OM2, OM3, OM4), it ensures flexibility across diverse network setups. Compatible with MSA compliant equipment such as Cisco, Meraki, Ubiquiti, D-Link, Supermicro, TP-Link, Broadcom, Linksys, Huawei, MikroTik, Netgear, and other open switches. It effortlessly integrates into different brand devices for swift and efficient network deployments.
  • 3. Plug and Play SFP Transceiver: Equipped with duplex LC connectors, this module facilitates easy installation and is hot-pluggable, adhering to SFP+MSA (Multi-Source Agreement) standards and supporting DDM (Digital Diagnostics Monitoring). This feature ensures uninterrupted connectivity during installation or replacement processes.
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2. Packaging, assembly and yield

Optical engines, electronics, fiber interfaces and switch silicon must be assembled and qualified as one unit. A yield or handling problem in one component can therefore affect the whole assembly, and that makes manufacturing scale a central question for any vendor. For background on the technical state of the field as of 2023, see the review Co-packaged optics (CPO): status, challenges, and solutions in Frontiers of Optoelectronics.

3. Reliability evidence

The Broadcom and Meta milestone is meaningful and bounded. It is one reported test, for one system, in one environment. Before treating any such result as a reliability benchmark, ask:

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  • What exactly was tested, and for how long?
  • At what temperature, and under which workload?
  • Were failures counted beyond link flaps, such as module, optical engine or service events?

4. Serviceability

A faceplate pluggable module is comparatively easy to replace. With CPO, a fault in an optical engine can involve the switch package or the whole system. External light sources and modular optical subassemblies may move some service functions out of the switch, but the sources reviewed do not settle lifecycle cost or repair strategy across vendors. Repair time and cost are therefore unknowns that must be established for each platform rather than assumed.

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  • Reach1: up to 70 meters OM3 MMF; Reach2: up to 100 meters OM4 MMF
  • Fiber Type: Dual LC OM3/OM4 multi-mode fiber
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5. Cabling and rack assembly

The Open Compute Project’s June 10, 2025 webinar description states: “There are many system level issues with in-rack optical cabling and designing pull-out compute trays and cooling to be overcome that are often overlooked.” The same description adds: “In addition, obtaining a high level of reliability and efficient operations are critical especially with long AI training runs.” Dense optical systems need repeatable fiber routing, installation and qualification procedures, and operations teams need to build the skills to run them.

6. Interoperability and vendor lock-in

Vendor figures use different systems and test conditions, so headline ratios do not transfer directly from one platform to another. Buyers should compare like-for-like workloads, reach, capacity, cooling and accounting boundaries, and should confirm multi-vendor interoperability rather than assume it. Ecosystem breadth determines how much choice remains once a fabric has been built.

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How to test a CPO claim before relying on it

Apply the same checklist to a CPO platform and to its pluggable alternative:

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  • Power boundary: module only, switch system, or network total. Compare only figures that measure the same boundary.
  • Bandwidth density and lane speed: the density measure and the per-lane rate being compared.
  • Reach and signal integrity: the link distances and loss budget the figure assumes.
  • Reliability evidence: test conditions, duration and the definition of a failure.
  • Cooling and facility impact: liquid-cooling requirements and their operating cost.
  • Repair and lifecycle: replacement procedure, mean time to repair, spares and lifecycle cost.
  • Packaging maturity: yield, qualification and manufacturing scale.
  • Cabling and operations: in-rack fiber complexity, rack integration and operational skills.
  • Ecosystem and interoperability: supplier breadth and vendor lock-in risk.
  • Workload and topology: dense AI scale-out or scale-up networks versus conventional enterprise traffic.

Where CPO fits, and where pluggable optics still make sense

CPO deserves serious consideration when:

  • the fabric is dense AI or high-performance computing, where electrical reach and power per link are binding limits;
  • the facility can support liquid cooling and the in-rack fiber plant the design requires;
  • the operator can accept a service model built around replacing packages or subassemblies rather than faceplate modules.

Pluggable optics remain the more conservative choice when:

  • the network carries conventional enterprise traffic with modest port counts;
  • the site lacks liquid cooling or a qualified fiber-installation process;
  • the team needs to swap optics quickly at the faceplate and cannot yet absorb a new failure mode.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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