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Alchip and Ayar Labs Unveil Co-Packaged Optics for AI Datacenter Scale-Up

September 10, 2025

Alchip and Ayar Labs Unveil Co-Packaged Optics for AI Datacenter Scale-Up

Alchip Technologies and Ayar Labs today unveiled a joint demonstration of co-packaged optics for AI datacenter scale-up, showcasing how CPO enables high-bandwidth, low-latency connections between AI accelerators. The demonstration validates the production readiness of Ayar Labs' TeraPHY™ optical engine integrated into Alchip's advanced ASIC designs. Alchip CTO Erez Shaizaf noted: 'We want to optimize space efficiency, but the challenge is that copper doesn't have the I/O connectivity to put everything together. CPO will break these boundaries.'

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