CPO's impact on pluggable optics will be nonexistent at first, as initial applications will replace copper and not fiber. From Jensen Huang showcasing CPO switches at GTC 2025 to a wide range of vendors demonstrating optical engines integrated inside ASIC packages at OFC 2025, CPOs are everywhere. However, it's worth noting that Andy Bechtolsheim, co-founder of Arista and a long-standing visionary in data centre. Marvell is partnering with equipment manufacturers, cable specialists, interconnect companies and others to ensure the infrastructure for delivering CPO will be ready when customers are ready to adopt it. The Trends Driving CPO AI's insatiable appetite for bandwidth and the physical limitations of. While copper still dominates ultra-short reach connectivity within racks, and pluggable optics remain the workhorse of scale-out data center fabrics, the panelists agreed that CPO represents the future of high-performance interconnect—particularly for scale-up GPU clusters where traditional modules. Scale-up is where there is pain (bandwidth, density, power), but that network is currently served by copper, which beats optics in power and cost and will therefore be hard to dislodge. Scale-out is already 100% optical and looks like a good place to initiate CPO deployments, but there are existing. Inside an AI server today, the GPUs talk to each other through copper cables and small pluggable optical modules. Starting in the second half of 2026, that wiring gets replaced by lasers built directly into the chip package (CPO). Goldman thinks the market for that goes from roughly 0 to $91. The Bernstein report points out that copper and optical solutions in AI data centers are not mutually exclusive but will coexist in the long term across two major scenarios: Scale-up and Scale-out.