Huawei pitches near-packaged optics as co-packaged costs bite

High-speed network optics are now more integrated, reducing hardware maintenance needs and simplifying upgrades.

Huawei has introduced a new near-packaged optics (NPO) module capable of 7.2 terabits per second (Tbps), positioning it as a superior alternative to current pluggable modules and co-packaged optics (CPO) for AI networks. Presented at the China International Optoelectronic Exposition, this NPO module integrates optical engine functions closer to the switch's ASIC but remains a separate, replaceable package. Huawei claims this approach reduces latency from 100ns to 10ns and cuts power consumption by approximately 60% by eliminating the need for a separate Digital Signal Processor (DSP) within the module and integrating its functions into the ASIC. The company intends to incorporate this NPO technology into its next-generation SuperPOD AI systems. While the Optical Internetworking Forum (OIF) is currently working on standards for NPO, focusing on a 6.4 Tbps interface, Huawei's 7.2 Tbps offering precedes these standards, though Huawei expresses confidence in future compatibility.

Huawei's push for NPO signals a pragmatic approach to the escalating demands of AI infrastructure, where the speed and power efficiency of optical interconnects are becoming critical bottlenecks. By moving the optical engine closer to the ASIC while maintaining a modular design, Huawei aims to balance performance gains with ease of maintenance, directly addressing the perceived cost and repair challenges of CPO. This move suggests a market bifurcation where NPO could become the preferred solution for scenarios prioritizing simpler deployment and servicing, while CPO might be reserved for extreme low-latency applications.

The company's demonstration of a 7.2 Tbps module ahead of OIF standards, which are targeting 6.4 Tbps, highlights Huawei's aggressive development cycle and its ambition to lead in AI networking hardware. This divergence could either spur faster standardization or lead to a period of interoperability challenges as the industry navigates differing technical implementations. The industry will be watching to see if other major players like Cisco, Arista, and Nvidia align with Huawei's NPO vision or pursue alternative solutions like Arista's XPO, potentially leading to a mixed ecosystem of optical interconnect technologies.