SemiAnalysis: AI networks are not a choice between copper cables and optical communication; both will benefit from the expansion of GPU clusters

BlockBeats News, June 20 — Semiconductor and AI independent research organization SemiAnalysis stated that investors are increasingly viewing AI networks as a binary choice between copper cables and optical communication, continuously evaluating the rotation between these two themes. However, they believe that as GPU cluster sizes expand, the importance of efficiently connecting these clusters will only continue to rise, driving growth in various network content demands.

Copper cables and optical communication serve different but complementary roles. When copper cables can meet requirements for distance, power consumption, cost, and reliability, they remain the preferred solution; when bandwidth and distance exceed copper cable limitations, optical communication becomes necessary. NVIDIA’s strategy has always been consistent: use copper cables when possible, and switch to optical communication when required.

This is not a market of either/or. Growth in optical interconnects does not mean copper cables will disappear, and resilient demand for copper cables does not imply optical communication will not expand. As AI system scale and complexity increase, the importance of data transfer between GPUs, switches, racks, and clusters rises, and both copper and optical connections should benefit.