Goldman Sachs: AI demand to grow optical networking to $154B
Business
Goldman Sachs says the demand for AI is about to supercharge the optical networking market.
We're looking at a jump from $15 billion in 2026 to a whopping $154 billion by 2028, nearly nine times bigger, all thanks to AI's need for faster data and smoother connections.
Optical networking: $106B scale-up, $91B CPO
Optical networking uses light through fiber-optic cables, making it much faster than old-school copper wires.
This tech is key for powering advanced AI systems, which need speedy data transfers and low lag.
Most of the growth will come from scale-up networking (about $106 billion), and Co-Packaged Optics (CPO) could represent $91 billion as it gets adopted in more networks.