To keep it simple I asked Deepseek this question.. seemed to me the easiest way to broach the question.. knowing they are different
nasdaq symbol POET for poet technology.. is there technology considered CPO
The analogy and conclusion are interesting.. my fear with Nvidia is their dominance.. at some point their customers will have so much in the the way of sunk costs that to consider alternatives if desired would be next to impossible.. which means Nvidia's way or the highway.. of course something like a newbuild data centre could consider alternatives..
So at any rate not looking like Nvidia looking at Poet
reply was
Of course. Let's break this down.
The short answer is no, POET Technologies' optical engines are not considered CPO (Co-Packaged Optics). They are a form of CPO's predecessor and alternative: Pluggable Optics, specifically advanced versions like OSFP (Octal Small Form Factor Pluggable) and QSFP (Quad Small Form Factor Pluggable).
However, POET's technology is a critical enabler for both pluggable optics and the future development of CPO solutions. This is a very important distinction in the industry.
Here’s a detailed explanation:
1. What is CPO (Co-Packaged Optics)?
· Definition: CPO moves the optical engine off the pluggable module and directly onto the same package as the switch ASIC (the main processor in a data center switch). The electrical signals travel a very short distance from the ASIC to the optical engine, which then converts them to light for transmission over a fiber.
· Key Driver: It's designed for next-generation, high-speed switches (e.g., 1.6 Terabit/sec and beyond) where the power required to drive electrical signals across a circuit board to a pluggable module becomes too high and inefficient.
· Trade-off: CPO sacrifices flexibility. The optical components are tied to the specific ASIC. If the ASIC fails, you must replace the entire, more expensive unit containing both the electronics and the optics.
2. What is POET Technologies' Approach?
POET creates optical interposer platforms that integrate all the key components of an optical engine (lasers, detectors, modulators, multiplexers) onto a single, small chip using a proprietary planar lightwave circuit (PLC) platform. This is a monolithic integration process, similar to how electronic chips are made.
Their primary products are optical engines that are then sold to module makers who package them into pluggable transceiver modules like:
· 800G and 1.6T OSFP and QSFP modules for data centers.
· Light engines for active optical cables (AOCs).
These are traditional pluggable form factors, not co-packaged.
3. Why POET is Confused with CPO (and Why It's an Enabler)
POET's technology is so advanced and integrated that it is often discussed in the same context as CPO because it solves many of the same problems:
· Size and Power: POET's optical engines are extremely small, low-power, and high-performance. This directly addresses the power and density challenges that CPO is also trying to solve.
· The Path to CPO: POET's interposer technology is seen as a perfect building block for future CPO designs. A company looking to build a CPO solution could integrate a POET optical interposer chip directly onto the ASIC package. POET provides the "optical" part of the "co-packaged" solution.
· Superior to CPO?: Some argue that advanced, low-power pluggables (like those enabled by POET) can meet the power and performance needs of next-gen networks without sacrificing the flexibility and interoperability that CPO gives up. This makes POET's pluggable approach a very compelling and lower-risk alternative.
Analogy
Think of it like building a computer:
· A Pluggable Module is like a graphics card. You can plug it into any compatible motherboard, upgrade it easily, or replace it if it fails.
· CPO is like having the GPU silicon soldered directly onto the motherboard. It's more integrated and can be more efficient, but you can't upgrade or replace it separately.
· POET makes the incredibly efficient and powerful GPU chip that can either be put on a pluggable graphics card or, if someone wanted to, could be soldered directly onto a motherboard for a custom, integrated design.
Conclusion
POET Technologies (NASDAQ: POET) is not a CPO company today. Its revenue-generating products are optical engines for pluggable transceivers.
However, its groundbreaking optical interposer technology is a key enabling technology for the entire industry, including both the current generation of pluggables and the future potential development of CPO solutions. This is why it's often mentioned in discussions about the future of optical packaging, which includes CPO.
For an investor, the key point is that POET's technology is agnostic to the final packaging form—it benefits from the growth of data centers whether the industry adopts advanced pluggables (its current market) or moves toward CPO (a future potential market). |
