Huawei has developed a pioneering 7.2-terabit-per-second optical module that replaces traditional copper connections with light-based data transfer, promising faster, more efficient AI computing infrastructure.
- 7.2Tbps near-packaged optics module boosts AI data transfer speeds
- Optical technology cuts power consumption and signal loss versus copper
- Huawei pushes for unified standards to enable broader adoption
What happened
Huawei Technologies revealed an advanced high-speed optical module designed to overcome data transmission limitations in artificial intelligence infrastructure. The company introduced the world’s first 7.2-terabit-per-second (Tbps) near-packaged optics (NPO) product during the China International Optoelectronic Exposition (CIOE) held in Shenzhen. This technology leverages optical signals over traditional copper wiring to dramatically increase data transfer capacity and reduce power consumption between AI processors.
Huawei’s optical module features 36 channels each operating at 200 gigabits per second, aggregating to 7.2Tbps of bandwidth. By moving optical components physically closer to network switching chips, the module shortens electrical paths, minimizing signal loss and boosting efficiency. Huawei’s advanced optoelectronics laboratory director, Man Jiangwei, stated that the company is already in the product development stage and aims to transition rapidly to volume production as the supply chain matures.
Why it matters
As AI systems grow increasingly complex with thousands of interconnected processors, existing copper-based data connections are reaching their physical limits around speed, distance, and energy efficiency. Huawei’s 7.2Tbps NPO module addresses these bottlenecks by improving bandwidth and reducing power usage, which is vital for the scalability and performance of future AI computing clusters.
However, despite the promising technology, a significant hurdle remains in the absence of unified industry standards. Currently, component manufacturers, equipment vendors, and chipmakers use diverse designs, impeding commercial-scale deployment. Huawei is actively working to shape these emerging specifications to accelerate the adoption of near-packaged optics, streamlining collaboration across the supply chain.
What to watch next
Huawei expects smaller-scale 3.2Tbps NPO modules to enter commercial deployment within 2026, with the 7.2Tbps variants gaining traction over the subsequent two years as production capabilities and supply chains advance. Progress in industry standards alignment will be critical to unlocking wide adoption and ensuring interoperability among vendors.
China’s dominance in the global optical transceiver market, with domestic companies supplying close to two-thirds of global volume in 2025, positions Huawei and its rivals such as InnoLight and Eoptolink to play a central role in defining next-generation AI data center connectivity. Monitoring how these standards evolve and how quickly production scales will provide key indicators of the optical interconnect industry’s trajectory.