Optical Networking Supercycle - ALL the Tech You NEED to know

Austin and Vik delve into the evolving landscape of optics and networking, particularly in relation to AI and data centers.

The conversation covers various scales of networking, including scale across, scale out, and scale up, while also addressing the demand-supply dynamics in laser manufacturing and the future of optical circuit switches.

The episode highlights the technological advancements and market opportunities in the optics sector, emphasizing the significance of these developments for the future of AI.

Takeaways
• Silicon photonics is becoming crucial for data center connectivity.
• Optics is essential for overcoming copper's limitations in speed and distance.
• Scale across technology is vital for connecting data centers.
• Scale out optics is the standard for connecting GPUs between racks.
• Co-packaged optics can reduce energy consumption in data centers.
• The scale up market for optics is emerging as a new opportunity.
• Indium phosphide wafers are a critical bottleneck in laser manufacturing.
• Optical circuit switches are gaining traction in data centers.
• 2026 is anticipated to be a pivotal year for optical networking.

Chapters

00:00 Introduction to AI and CPU Bottlenecks
03:00 The Rise of Silicon Photonics
06:01 Understanding Optical Networking and Data Centers
08:49 Scale Across: Connecting Data Centers
11:56 Scale Out: Optimizing Data Center Connectivity
14:53 Scale Up: The Future of GPU Connectivity
23:32 The Shift from Copper to Optical Connections
26:13 Challenges and Reliability of Lasers
30:47 Understanding Co-Packaged Optics
34:17 Market Dynamics: Demand and Supply of Lasers
40:46 Emerging Technologies: Optical Circuit Switches

Check out Austin's Substack: chipstrat.com
Check out Vik's Substack: viksnewsletter.com