The firm notes CPO is an architectural shift driven by power, bandwidth, and density constraints of traditional pluggable optical modules. CPO could reduce optical interconnect power consumption by 50-80%, with key participants including Broadcom, NVIDIA, Lightmatter, Ayar Labs, Marvell, and TSMC.
The industry is hitting a copper wall, making CPO a necessary shift to reduce power consumption and enable higher density in AI datacenter networking.