Co-packaged optics: The future of data centers

 

When fiber goes to the chip, we have a faster flow of data… changing the digital age forever.

 
Co-packaged optics frees the flow of data, advancing AI and pushing a new digital age.
 

Imagine the internet as a massive highway system, where trillions of pieces of data are zipping around every second.

Now, imagine that some of the most essential roads are congested. They’re not just slowing traffic; they’re also guzzling energy and increasing costs.

This is the challenge faced by today’s hyperscale data centers with generative AI, and it’s one that Corning aims to solve with co-packaged optics (CPO).

“Generative AI requires a neural network inside the data center, and co-packaged optics is a way to make that network even smarter,” says Mike O’Day, Senior Vice President & General Manager, Optical Communications. “The rapid growth of AI is really increasing demand for faster, more efficient technology, and it’s a challenge that Corning is ready to meet.” 

 
Rethinking the way our data flows to and from microchips makes all the difference when it comes to data center performance, cost, and sustainability.
 
What is co-packaged optics, and why does it matter?

At its core, co-packaged optics is a technology that replaces traditional copper connections inside servers with high-speed fiber optical connections.

But why replace copper? Let’s talk about it:

In today’s data centers, optical fibers – thin strands of glass that transmit data using light – are already used to move information between servers. But once that data reaches a certain point into a server or switch, it’s converted into electrical signals and sent through copper connections to the chips that process it. Due to the rise of AI and the elevated rate of data processing, these copper connections are pushed to the limit – creating computational bottlenecks: they lose signal quality over short distances, waste energy, require costly signal boosters, and generate extra heat.

CPO changes this by increasing optical fiber’s reach into the server – in some cases, all the way to the chip itself. Instead of converting light into electricity at the server’s face plate, CPO keeps the data in its optical form until it gets really close to the GPU or switch. This eliminates the inefficiencies of copper and unlocks faster, cheaper, and more energy-efficient data processing.

“By co-packaging optics directly with the chip, we can significantly reduce power consumption, improve data speeds, and free up valuable space inside the chip,” says Claudio Mazzali, Corning’s Senior Vice President of Technology. “This technology will be critical for the future of AI and cloud computing.”
 

Performance, cost, sustainability

The shift to CPO increases data center performance. For example, a single server rack in an AI data center might contain two miles of copper cables connecting hundreds of chips. As data speeds climb beyond hundreds of gigabits per second, these copper connections can’t keep up without costly boosters. CPO eliminates these “lossy” copper links, making data transmission much smoother.

CPO also has cost benefits for data center operators. According to industry estimates, CPO could cut the cost of optical components by 40%, while also reducing the cost for energy-intensive signal management elements.

“Some chip makers estimate more than 50% in power savings compared to today’s technology,” Mazzali says. “That can be a game-changer for data centers struggling with rising energy costs.”

Data centers consume an enormous amount of energy. A recent report from the U.S. Department of Energy estimates that data centers are expected to consume approximately 6.7 to 12% of total U.S. electricity by 2028. By reducing power consumption, CPO can help data centers operate more sustainably.

 
This mockup is a representation of how CPO would work in a data center switch box, where many data-carrying fibers converge. The data flows into the box through external connectors (right) and then through to the photonic integrated circuits (PICs), where the data is transformed from optical signals to electricity. The switch chip (center) reads the address on the data packet and then directs the data typically to another PIC on the next phase in its journey. This PIC transforms the electrical data packet from the switch back to an optical signal and sends it out via an external connector. A similar infrastructure can be used in an AI server itself, where PICs would hook up to a graphics processing unit.
 
Optical fiber leads the way

Corning is at the forefront of CPO innovation. With decades of expertise in glass and optical technologies, the company is uniquely positioned to tackle the challenges of co-packaged optics.

Corning’s CPO FlexConnect™ fiber is a single-mode, bend-resilient glass fiber that is specifically optimized for short-length configurations, making it the ideal data street between the fiber outside the server and the chip.

FlexConnect is just one of the many offerings of Corning’s GlassWorks AI™ solutions — a one-stop shop for AI network needs both inside and outside the data center. 

 
The more complicated the chip design, the more layers are likely. This is called 3D chip packaging.
 
Glass as a chip substrate

In addition to Corning’s leadership in fiber infrastructure and optical connectivity, the company is extending its glass expertise into semiconductor packaging through its Glass Core program.

What is Glass Core? Glass Core technology is a glass-based substrate with Through-Glass Vias (channels where electronic interconnects can travel through chip layers). Glass Core is an alternative to traditional organic cores in advanced chip packaging that can enable larger form-factor packages with higher interconnect density.

Why Glass Core? Next-generation AI and high-performance computing systems generate a lot of heat from multi-chip architectures. That heat pushes the limits of organic materials creating warpage and limiting connectivity density. With a higher thermos-mechanical stability than current organic substrates, Glass Core has a tunable coefficient of thermal expansion, reducing warpage in chips.

Using glass as a chip substrate can help improve power and signal integrity and can address key scaling challenges in chiplet-based designs.

Corning’s proprietary fusion process is perfect for making Glass Core substrates with exceptional dimensional stability, ultra-flat surfaces, and low total thickness variation. And scientists continue to develop glass compositions optimized for Through Glass Vias formation and metallization performance.
 

Combining solutions for optimal performance

Both CPO and Glass Core align with the most pressing challenges for advanced AI systems. Looking ahead, these technologies could converge: Glass Core substrates may integrate optical waveguides alongside electrical redistribution layers, creating a platform for seamless electrical-optical integration. This synergy positions Corning to enable next-generation data center architectures by combining its leadership in glass science with its expertise in optical connectivity. 

“These technologies aren’t new to us,” Mazzali says. “We’ve been perfecting these processes for years, and now we’re applying them to optical interconnects. It’s a perfect example of how we repurpose our expertise to meet emerging needs.”
 

Changing our digital world

Co-packaged optics may not be a household term, but it’s a technology that could change the way our digital world operates. By delivering faster speeds, cutting costs, and reducing energy use, CPO has the potential to transform not just data centers, but the way we experience the internet, AI, and emerging technologies.

“As Corning leads the charge, we’re not just innovating – we’re helping to shape a more connected, sustainable future,” O’Day says. 

 

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