Serenity: OpenAI’s network optimization will not weaken demand for optical modules; AI compute expansion will continue to drive growth in optical communications

BlockBeats message, July 11, Serenity posted saying that, in response to recent discussions about potential optimization of the OpenAI MRC network architecture and Amazon (AMZN) RNG architecture possibly leading to a decline in optical module demand, it believes that even if the number of optical modules required per single XPU decreases, the rapid expansion of AI compute power scale will still drive continued growth in overall optical communications demand.

Serenity noted that, with a significant increase in the number of XPU deployments, total optical module demand is still expected to continue growing. Regarding CPO (co-packaged optics) laser solutions, it believes VCSEL is a better fit as a transitional technology for NPO (near-packaged optics) and short-distance interconnect stages, while in the long run, ultra-high power continuous-wave (UHP CW) lasers will be a better option for CPO; this view is also consistent with Broadcom’s prior public remarks.