Photonics and high-speed data movement is the next big AI bottleneck — following copper, power, DRAM, and NAND

The demand for high-speed data movement in AI data centers is increasing due to the growth of more intensive AI models and the shift towards agentic AI. Photonics technology is being highlighted as a solution to address the limitations of current copper-based interconnects in handling the bandwidth requirements of AI workloads. Companies like TSMC, Nvidia, Marvell, and Broadcom are investing in photonics to enhance data center performance. However, challenges such as manufacturing scale, raw material supply, packaging, and reliability need to be addressed to fully leverage the potential of photonics in AI data centers. The industry is preparing for a significant increase in demand for photonics technology, which could potentially become the next bottleneck in AI scaling.