The Route Dispute at the OFC Optical Communications Conference: What's Really at Stake?

The rapid expansion of AI computing infrastructure is driving a technological race that is sweeping through the entire supply chain. At this year’s GTC and OFC Optical Communication Conference, the choices between copper and optical solutions for data interconnects, the large-scale deployment of 800VDC power architectures, and the deep restructuring of network switch ecosystems have defined the next phase of hardware evolution for AI data centers.

Nvidia CEO Jensen Huang clarified the timeline for interconnect technology evolution during GTC: the Vera Rubin Ultra generation (2027) will offer two options—copper cables or copper cables plus CPO (co-packaged optics)—while the Feynman generation (2028) will fully switch to CPO. However, non-NVLink internal rack interconnects are expected to continue using copper cables.

This is Nvidia’s clearest signal to date regarding the commercial rollout of CPO, providing important guidance for the supply chain landscape. According to Morgan Stanley research, despite the increasing adoption of CPO, copper cables and optical solutions will coexist for a considerable time, both benefiting from the ongoing market expansion.

The exhibition reveals not a single winning technology but a synchronized evolution across multiple dimensions: copper and optical coexist in data interconnects, 800VDC power architectures are accelerating deployment, and the ecosystem for network switches is quietly expanding through white-box and ODM direct supply models.

Copper and Optical: Coexistence, Not Replacement

In the field of data interconnects, the past year’s market focus has been on whether CPO can replace copper cables. Huang’s statements provide a clearer answer: replacement will occur, but gradually and not entirely.

Nvidia’s plan is to initially use copper cables for NVLink scale-out networks. In 2027, Vera Rubin Ultra will introduce a hybrid solution of copper cables plus CPO, and by 2028, Feynman will fully switch to CPO. However, non-NVLink internal rack connections—including LPX interfaces and storage interconnects—are expected to continue using copper cables.

Additionally, Huang noted that as the overall market expands, both copper and optical interconnects will continue to grow.

Morgan Stanley believes that copper cables still offer better cost-performance within their supported distance ranges, and active copper solutions like AEC (Active Electrical Cables) and ACC can further extend copper’s application boundaries through signal boosting technology. Therefore, the optimal strategy for suppliers is not to bet solely on one technology but to develop both copper and optical solutions simultaneously.

Bizlink’s booth at OFC exemplified this logic. Besides deepening AEC business with Credo, the company also showcased fiber array unit (FAU) coupling modules and shuffle box components. Morgan Stanley’s channel research suggests Bizlink may also be collaborating with Credo on active LED cables (ALC) and optical modules, indicating a proactive shift toward optical solutions.

800VDC: The High-Power Revolution in Power Architecture

If data interconnects are the overt theme of this exhibition, the acceleration of 800VDC power architectures is a more subtle but profoundly impactful transformation.

During GTC, multiple suppliers—including Delta, Eaton, Flex, Lead Wealth, Lite-on, Megmeet, and APC—demonstrated prototype 800VDC power rack products, with unprecedented scale. The core feature of this architecture is separating the power rack from the IT compute rack to meet the rising power density demands of AI servers.

Morgan Stanley notes that this shift will increase the per-unit value of power distribution and busbar products for Bizlink, driven by higher shipment volumes and stricter specifications that raise ASPs. Chroma also anticipates continued growth in testing equipment for AI power supplies, aligned with customer capacity expansion and device upgrades.

Network Switches: Ecosystem Openness and New ODM Opportunities

The network switch sector is undergoing a structural change in its supply ecosystem. Morgan Stanley and multiple supply chain companies report that several manufacturers plan to develop network switches based on Mellanox’s Spectrum X ASIC, targeting shipment launches in the second half of 2026.

This indicates a shift from Nvidia’s previous integrated system sales toward an open ecosystem of white-box switches and vendor-branded products. Morgan Stanley believes this transition will positively catalyze ODMs like Accton, opening new business opportunities with large-scale cloud providers.

At OFC, Accton’s product lineup also drew attention, including 800G/1.6T optical modules, 102.4T CPO switches, and optical wavelength switches.

Morgan Stanley sees these products as demonstrating Accton’s ability to offer switch solutions across different technological architectures. In a market increasingly interested in CPO adoption and optical circuit switching, this capability provides a competitive edge.

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