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Open AI's new products will be released soon, and the prosperity of the AI Computing Power and optical communication industries continues to rise.
Open AI new products are about to be released, the global Computing Power and optical module prosperity continue to improve
OpenAI founder Sam Altman announced that a new product will be released on May 13 at 10 AM. Although it is not GPT-5 or a search engine, it is expected to be a product of interest to people. This news will once again spark market attention on AI.
The prosperity of the overseas optical communication industry continues to rise, and the market scale is constantly expanding, mainly reflected in three aspects:
800G business acceleration. Coherent's revenue for 800G in the third fiscal quarter reached 200 million USD, and it is expected to exceed 250 million USD in the next quarter, a 25% increase quarter over quarter.
The demand for 800G continues to exceed expectations. The number of Coherent 800G customers has increased from 2 to 4, and the compound annual growth rate is expected to remain at 60% over the next 5 years. Fabrinet stated that 1.6T will not replace 800G, and both will continue to see strong growth.
1.6T acceleration landing. Coherent plans to start sample delivery of 1.6T in the third quarter of 2024, with mass production in the first quarter of 2025. Lumentum states that 1.6T modules can be shipped this summer, with accelerated production in 2025.
This reflects the sustainability of the industry's prosperity and the future accelerated development trend driven by 1.6T. The demand for 800G has been confirmed from multiple links such as modules, chips, and devices, and the launch of 1.6T will not directly affect the overall prosperity. Currently, the development speed of AI far exceeds Computing Power supply, and the market is still in a state of supply not meeting demand.
The development of AI has also accelerated the demand for liquid cooling. SMCI's new DLC liquid cooling module has already achieved mass production capability, supporting 100-120KW per cabinet, far exceeding traditional racks. The era of "hundred kilowatt" cabinets has arrived, and in the future, cooling may become one of the key factors limiting computing power density. The importance of the cooling sector should be no less than that of the development of computing power itself.