Will optical interconnects replace optical modules
Optical interconnects are poised to complement and gradually replace traditional optical modules in high-performance data centers, especially for AI workloads, but full replacement depends on ecosystem maturity and deployment scenarios.
Current Limitations of Traditional Optical Modules
Traditional pluggable optical modules, such as QSFP-DD and OSFP, rely on digital signal processors (DSPs) and clock data recovery circuits (CDRs) to manage signal equalization and error correction. While effective, these components consume significant power, add latency, and increase cost, particularly at speeds of 400G and above, making them less efficient for next-generation AI and hyperscale data centers .
Emergence of Optical Interconnects
Linear Pluggable Optics (LPO)
LPO removes DSPs from the module, using high-linearity drivers and transimpedance amplifiers (TIAs) to convert electrical signals to optical signals, with the host ASIC handling signal equalization. This approach reduces power consumption by 30–50% per module, lowers latency, and maintains a pluggable form factor for easy servicing . However, LPO has shorter transmission distances and slightly higher bit error rates due to the lack of onboard DSPs, making it more suitable for closed-system or intra-rack deployments .
Co-Packaged Optics (CPO)
CPO integrates the optical engine directly with the switch or GPU ASIC, eliminating long electrical paths and DSPs. This provides higher bandwidth, lower latency, and improved power efficiency, but introduces thermal management challenges and stricter reliability requirements . CPO is ideal for high-density AI and HPC environments where maximum performance is critical.
Near-Packaged Optics (NPO)
NPO positions the optical engine and xPU side-by-side on the same PCB or substrate, achieving short electrical paths with minimal loss while maintaining independent thermal management. It offers high bandwidth, low crosstalk, and easier maintenance compared to CPO .
Industry Trends and Adoption
AI data centers are driving the shift toward optical interconnects due to exponentially increasing compute and bandwidth demands. Startups and major vendors are demonstrating optical links directly on GPUs and memory packages, replacing copper interconnects for intra-rack communication . Analysts predict that all high-bandwidth AI data center interconnects could be optical within five years, though traditional pluggable modules will continue to coexist in multi-vendor or lower-speed deployments .
Conclusion
While optical interconnects (LPO, CPO, NPO) offer superior power efficiency, bandwidth, and latency, they are not yet universally standardized and face deployment and ecosystem challenges. Therefore, traditional optical modules will likely coexist with optical interconnects for the near term, particularly in multi-vendor environments or for longer-reach links. Over time, as standards mature and integration improves, optical interconnects are expected to gradually replace traditional modules in high-performance, AI-driven data centers .
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