By Hassan Mujtaba
Publication Date: 2026-08-14 12:20:00
NVIDIA’s partners on co-packaged optics, or CPO, have said that the deployment of the first server solutions remains on track.
NVIDIA’s CPO (Co-Packaged Optics) Partners Say All Is Well, As Delay Rumors Are Blown Away In The Dust
Recently, there have been several rumors regarding the adoption of CPO in the data center ecosystem. As per the rumor mill, the adoption of CPO was said to be delayed for years, but during recent investor calls, both Lumentum and Coherent have stated that the production of CPOs remains on track.
According to Lumentum, the demand for ultra-high power CPO lasers is gaining momentum and that, in addition to CPO, several NPO engagements are “underway”. The company expects that the volume shipments for scale-up would commence in the second half of 2027 & the first customer deployments are expected in 2028.
Coherent also hosted in investors call this week, in which it said that scale-out CPO revenue begins in the second half of 2026 (rack-to-rack), while scale-up CPO revenue is expected to follow in 2027. Coherent also highlighted that it is engaged with multiple customers on its CPO & NPO offerings.
Both of these companies have one major client, and that is NVIDIA. In March, NVIDIA announced a multi-year “strategic partnership” with Lumentum Holdings to accelerate optics technologies. NVIDIA announced a $2 billion investment in Lumentum to support R&D, increased capacity, and operations as the company…
