GlobalFoundries introduces co-packaged optics to replace copper wiring in AI chips, targeting power and speed inefficiencies.
GlobalFoundries (NASDAQ: GFS) is challenging the AI industry’s reliance on copper wiring by introducing co-packaged optics (CPO) technology. The company’s SCALE platform integrates optical transceivers directly with chips, reducing heat and power consumption while improving data transfer speeds.
Current AI data centers face a “copper wall” as bandwidth demands outpace copper’s capacity, leading to signal loss and inefficiency. Competitors like Amazon, Alphabet, and Microsoft have focused on scaling GPU clusters, but GlobalFoundries argues the real bottleneck lies in interconnectivity.
The shift to optical solutions could lower operational costs and enable larger AI models. GlobalFoundries unveiled the SCALE platform in May 2026, positioning itself as an alternative to traditional semiconductor approaches.