Optical signal processor achieves 1.6 Tb/s to bypass data center bottlenecks

The transition to all-optical processing eliminates the 'electrical bottleneck,' where repeated conversions between light and electricity drive significant latency and heat in AI clusters. This OSP architecture allows data to remain in the optical field throughout the equalization process, a critical requirement for maintaining 1.6 Tb/s throughput in distributed AI training environments. For the ecosystem, this move validates all-optical architectures as a viable successor to traditional digital signal processing (DSP) in the next phase of high-speed networking. Watch for the integration of these OSPs into commercial silicon photonic transceivers, particularly those targeting the 200G per lane standard.

The push toward all-optical architectures aligns with broader industry efforts to manage the power consumption of next-generation AI factories. Per TrendForce (June 2026), the market for co-packaged optics (CPO) and near-packaged optics (NPO) is projected to grow from $100 million in 2025 to over $39 billion by 2030, as cloud service providers prioritize interconnect efficiency alongside raw compute power. Major infrastructure players have already begun securing the supply chain for these technologies; per Futurum Group (March 2026), NVIDIA recently invested $4 billion across Coherent Corp. and Lumentum Holdings to accelerate silicon photonics manufacturing and R&D.

Technically, the industry is navigating a transition where traditional copper interconnects and pluggable optical modules are hitting physical limits at 224 Gbps per lane. NVIDIA and Broadcom have publicly committed to CPO and silicon photonics to reduce electrical loss from roughly 22 decibels to just 4 decibels, according to reporting from Tom's Hardware (August 2025). By shifting signal processing away from discrete electrical chips and toward integrated optical solutions, operators can reduce per-port power consumption from 30W to roughly 9W.

Strategic collaborations are also accelerating; per DataM Intelligence (April 2026), Cisco revealed its its own 1.6 terabits per second low-power optics using proprietary silicon photonics in March 2026. These developments suggest that all-optical processing, as demonstrated by the CUHK team, is moving from academic proof-of-concept to a primary requirement for the multi-gigawatt data center campuses planned for the late 2020s.