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Neither co-packaged optics (CPO) nor linear pluggable optics (LPO) is the universal choice for an AI network. LPO keeps optics in replaceable front-panel modules but removes the module’s DSP and clock-data recovery, asking the host SerDes and analog components to preserve signal quality. CPO moves optical engines close to or into the switch ASIC package, shortening the electrical path but deepening the platform’s integration, thermal, reliability, and repair challenges. Choose by testing the complete link and switch against the network’s bandwidth density, reach, power, interoperability, cooling, and service requirements.
What is the difference between CPO and LPO?
Both architectures change how a switch connects its electrical processing to optical links. The main difference is where the optical conversion happens and how much signal conditioning sits between the switch ASIC and the optics.
| Architecture | Where the optics sit | What happens to signal conditioning | Operational consequence |
|---|---|---|---|
| Conventional DSP-based pluggable | In a replaceable front-panel transceiver | The module typically includes a DSP that equalizes transmit and receive signals. | The module can be hot-swapped, and its DSP handles some of the signal-conditioning burden. |
| LPO | In a replaceable front-panel transceiver | The module removes its DSP and clock-data recovery (CDR). Conditioning is divided among the switch ASIC, driver, and transimpedance amplifier (TIA). | It retains module replacement and hot swapping, but depends more heavily on the host and analog link to maintain signal quality. |
| CPO | In or close to the switch ASIC package, depending on the implementation | Moving optical conversion close to the ASIC shortens the high-speed electrical path; the exact retiming and equalization design depends on the system. | It avoids a standalone front-panel optical module, while tying optical, electronic, package, and thermal design more closely together. |
Removing the module DSP is not the same as eliminating all signal processing. With LPO, the host SerDes and analog components must work with the module and channel as a coordinated link. With CPO, reducing the electrical distance between the ASIC and optics can improve signaling conditions, but the complete optical link still has to meet its reach and performance targets.
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Linear receive optics (LRO) is a related design, not a synonym for LPO: it removes DSP on the receive side but retains transmit-side DSP. That can improve reach and interoperability relative to fully linear LPO, while giving up some of LPO’s potential power efficiency.
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Does CPO use less power than LPO?
It may, but a single module or optical-engine wattage does not answer which switch or network uses less power. A fair comparison needs the same link rate, reach, traffic conditions, and system boundary. It should account for the host SerDes, any retimers, optical components, cooling, and the wider switch architecture—not just the transceiver or optical engine.
An IEEE 802.3 contribution in May 2026 cited an example of about 15 W for DSP-based 800G pluggables and about 5 W for CPO, citing Meta at ECOC 2025 and ASE 2025. These are attributed example figures, not a controlled, universal, like-for-like comparison of all LPO and CPO products. The example compares DSP-based pluggables with CPO; it does not establish an LPO power value or prove that every CPO system draws less power.
The same IEEE contribution cited a scenario involving a 200,000-GPU cluster consuming 435 MW of IT power, with optical transceivers accounting for 17 MW. Treat that as a cited scenario, not a general statistic for AI clusters. It illustrates why optical interconnect power can matter at scale, but it does not tell an operator how much a particular architecture will save.
Other widely repeated energy figures need similar care. A September 2025 IEEE Communications Society President’s Page framed 20 pJ/bit for 100G PAM4 datacom optics against a goal of 5 pJ/bit or less. The page also described interconnects as a current 1% share of data-center power and projected 5–10% absent new approaches. Those figures are the article’s framing and projection, not a controlled LPO-versus-CPO measurement or a universal measured share. McKinsey’s 2025 report described up to 30% lower data-center energy consumption from CPO as a potential projection, not a guaranteed or measured saving for an operator’s deployment.
For context rather than an architecture comparison, a 2024 Lawrence Berkeley National Laboratory report, as reproduced in an IEEE Photonics Technical Committee overview, put U.S. data centers at 4.4% of total U.S. electricity consumption in 2023 and projected 6.7% to 12% by 2028. The latter range is a projection; neither figure measures optics’ share or the effect of choosing LPO or CPO.
Where LPO is a better fit
LPO is most compelling when front-panel serviceability matters and the actual host, channel, and module can operate reliably without module DSP/CDR. Its pluggable form preserves hot swapping, which can make component replacement more straightforward than a package-integrated optical design. That advantage is operational, not proof that every LPO link will be easier or cheaper to maintain under every service arrangement.
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- Prioritize LPO when: replacing a front-panel module independently is valuable to the maintenance plan.
- Require link validation when: the planned reach, lane rate, host SerDes, driver, TIA, module, and channel have not been qualified together.
- Check ecosystem fit when: the design depends on a particular SerDes generation, standard, or vendor combination. Standards and ecosystem alignment are still developing, and compatibility challenges have been identified, including with 200G SerDes.
- Include operating conditions: confirm that DSP-free operation remains stable across the thermal and workload conditions expected in service.
The trade is signal margin. Removing DSP equalization can reduce transmission distance and increase bit-error-rate (BER) risk, so the word “linear” should not be taken to mean that a link will work at any reach or with any host. The IEEE Photonics Technical Committee overview identifies reduced transmission distance from higher BER risk, a lack of well-defined industry standards, and added SerDes complexity among LPO concerns. Actual capability depends on the selected implementation and channel.
Where CPO is a better fit
CPO is worth evaluating when a switch design is constrained by bandwidth density or by the electrical distance between the switch ASIC and optical conversion. A May 2026 IEEE 802.3 contribution describes CPO and near-packaged optics (NPO) as shortening electrical paths from tens of centimeters to millimeters, improving signaling integrity especially at 400G per lane. This describes the design rationale; the realized benefit depends on the platform, and a shorter electrical segment does not by itself establish total optical reach or end-to-end link performance.
- Prioritize CPO evaluation when: the required switch-level bandwidth density or electrical-path constraints are difficult to meet with the chosen pluggable arrangement.
- Confirm platform readiness when: the design team can manage co-design among the ASIC, optical engine, package, and thermal system.
- Model service before deployment when: repair or replacement of an optical component could involve more than swapping an individual front-panel module.
- Qualify production realities when: package reliability, manufacturing yield, supply, cooling, and platform availability affect deployment risk.
Integration shifts the engineering and service problem; it does not make it disappear. McKinsey’s 2025 report identifies reliability, thermal management, interoperability, and repairability as CPO challenges. A platform that gains density but cannot meet its cooling or repair requirements may be a poor fit even if its optical path is attractive.
How to choose for an AI network
Make the decision at the system level. Start from the fabric’s actual requirements rather than a headline power figure or the architecture label. CPO and LPO benefits are dependent on the ASIC, optics, lane rate, reach, cooling, interoperability, service model, and total cost of ownership.
- Set the link requirements. Record the target link rate and lane rate, required reach, traffic conditions, error budget, port density, and the way links will be used in the fabric. Distinguish requirements from vendor examples or projected benefits.
- Identify the complete signal path. For LPO, include the host ASIC and SerDes, driver, TIA, module, and channel. For CPO, include the ASIC, package-level or nearby optical engine, electrical segment, optical path, and any retiming or rate-adaptation components. The selected design must work as a whole.
- Compare equivalent power boundaries. Measure or obtain system power at the same link rate, reach, traffic conditions, and boundary. Include the host and cooling, and account for retimers or other components where present. Do not compare a module-only number for one architecture with a switch-level number for another.
- Validate signal and error performance. Test the intended configuration against its reach and error requirements. For LPO in particular, confirm that the host and analog components can maintain signal quality without module DSP/CDR. For either architecture, assess the complete link rather than inferring performance from the location of the optics.
- Check interoperability and standards alignment. Confirm the supported combinations of host, optics, lane rate, and operating mode with the platform providers. Do not assume that a standard or a nominally compatible component guarantees interoperability across an untested system.
- Plan cooling and thermal qualification. Include the switch and optical components in the platform’s thermal assessment. For CPO, explicitly account for thermal coupling and package design; for LPO, validate module-level thermal and reliability behavior in the intended system.
- Map the repair workflow. Determine what is replaced after a failure, who can perform the work, and how the service affects the switch or network. LPO retains a hot-swappable front-panel module. CPO’s tighter integration can make a failed optical component harder to replace and may increase switch-level repair cost.
- Calculate total cost of ownership. Include the system, cooling, service model, qualification, replacement path, and operational consequences alongside component costs. The available architecture evidence does not establish one universal cost winner.
- Qualify the actual platform before scaling. Use the intended ASIC, optics, reach, lane rate, and operating conditions. Keep measurements tied to that configuration; do not promote a working-group example or a vendor scenario into a general benchmark.
A useful decision rule is to choose LPO only when the replaceable-module model is valuable and the intended host-to-optics link passes qualification without DSP/CDR. Choose CPO only when its density or shorter electrical path addresses a real platform constraint and the system can support its thermal, integration, reliability, and repair model. If neither architecture clears those conditions, compare other link arrangements rather than forcing a choice between the two.
Cost, procurement, and deployment implications
Component price alone can obscure the economic decision. LPO may preserve a familiar procurement model in which modules are stocked and replaced independently, but qualification can require testing each host-and-module combination. Engineering time, interoperability testing, spare inventory, and troubleshooting of a marginal link belong in the budget. A lower module price does not compensate for repeated field failures or a reach restriction that forces a different cable or topology.
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Procurement should also test continuity of supply and platform availability. Ask whether the required optical engine, switch, and replacement path will be available on the same schedule, and whether a second source is qualified. For LPO, verify that replacement modules preserve the tested host, lane-rate, reach, and operating mode. For CPO, verify the vendor’s repair route and expected turnaround before committing the fabric to a package-integrated design.
What can go wrong, and what to investigate
An LPO link fails at the intended reach
Do not assume that the nominal module rate alone determines reach. The concern identified for LPO is reduced transmission distance and higher BER risk when DSP equalization is removed. Recheck the actual host SerDes, analog components, channel, module, and error performance together. If the link cannot meet the required margin, the architecture may not suit that path; a related LRO approach retains transmit-side DSP while removing receive-side DSP, but its reach and interoperability still need validation for the specific system.
Components that appear compatible do not interoperate
Confirm the exact host, optics, lane rate, and supported operating mode with the platform providers, then test the combination. LPO standards and ecosystem alignment remain in development, and the sources also flag system-level interoperability concerns for CPO. A component’s availability or a standards reference alone does not prove that a particular switch-and-optics combination is qualified.
A power estimate does not match system behavior
Check whether the figures cover the same boundary. A module figure can omit host SerDes, retimers, cooling, or other switch-level effects. The May 2026 IEEE contribution notes that retimers can handle rate adaptation and modulation mapping in some conditions, which affects what belongs in the comparison. Recalculate or measure with comparable link rates, reach, traffic, and system boundaries.
CPO’s density gain creates a service or thermal problem
Assess cooling, thermal gradients, package reliability, manufacturing yield, and replacement procedures before deployment. McKinsey highlights thermal management, reliability, interoperability, and repairability as challenges. If a failed optical component cannot be serviced in a way that meets the operator’s requirements, include the resulting switch-level repair implications in the platform decision.
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A network team treats a laboratory result as a production guarantee
Separate an attributed demonstration from a qualified product specification. The 15 W and 5 W examples, the 435 MW cluster scenario, and the projected energy ranges are useful for framing the problem, but each has a defined scope. Reproduce the relevant measurement with the intended switch, firmware, lane rate, reach, traffic pattern, inlet temperature, and cooling configuration. Record whether the result is module-only, line-card-level, or complete-system power.
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Before a scale-out decision, create an acceptance matrix that names the exact ASIC, SerDes mode, optical part, lane mapping, fiber or cable, reach, and temperature range. Measure BER or the applicable error metric at nominal and worst-case conditions, then repeat after thermal soak and representative traffic. For LPO, include channel-loss and margin testing because the host performs more of the equalization work. For CPO, include package and thermal-gradient behavior, optical-engine monitoring, and the planned failure-recovery procedure.
Interoperability testing should cover the combinations that operations will actually use, not only a single vendor pair. Record firmware and management-interface dependencies, alarm behavior, and what happens when a module or optical engine is replaced. The acceptance report should state the power boundary and measurement method so future comparisons remain like for like.
Why this choice matters—and what it does not prove
AI networks can make interconnect efficiency and bandwidth density important design concerns, but broad data-center energy projections cannot tell an operator which optics architecture to select. The 2025 IEEE Communications Society President’s Page states that “Copper cables should be prioritized whenever feasible due to their higher reliability and lower cost than optics.” That is a reminder to assess the needed medium and topology as well as the choice between optical implementations; it is not evidence that copper fits every link or fabric requirement.
Likewise, figures such as the cited CPO energy projection or 800G power example can motivate a closer evaluation, but they do not replace platform-level measurements. Available evidence supports the architectural trade-offs, not a universal CPO or LPO deployment winner, a single quantified reliability comparison, or independently tested product benchmarks. Product availability, standards maturity, and interoperability are platform- and time-dependent, so verify the current qualifications for the intended deployment.
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Can LPO reach the required distance without a DSP?
Sometimes, but reach is implementation- and channel-specific. Removing DSP equalization can reduce transmission distance and increase BER risk. Qualify the host SerDes, driver, TIA, module, channel, lane rate, and error margin together at the required distance.
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Are CPO optics replaceable?
They are more tightly integrated with the switch package or nearby ASIC than a front-panel module. Replacement may therefore require a larger switch-level repair rather than a hot-swappable module exchange. Confirm the vendor’s field-replacement procedure and turnaround before deployment.
Does CPO always consume less power than LPO?
No. CPO can reduce electrical-link and retiming overhead, but savings depend on the complete architecture and measurement boundary. Compare equivalent link rates, reach, traffic, host SerDes, retimers, cooling, and switch-level power.
Is LRO the same as LPO?
No. LRO removes DSP on the receive side while retaining transmit-side DSP. It can improve reach or interoperability relative to fully linear LPO, but it gives up some potential power savings and still requires platform-specific qualification.
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LPO generally preserves the familiar hot-swappable front-panel module model. CPO can make optical components harder to replace because they are integrated with the package or switch. Actual service cost and downtime depend on the platform’s repair process and spares policy.
What should an AI-network buyer compare first?
Start with the complete system: required reach and lane rate, host SerDes, error budget, port density, power boundary, cooling, interoperability, replacement workflow, platform availability, and total cost of ownership. Do not select from module wattage or a generic architecture label alone.
The Bottom Line
Choose LPO when replaceable, hot-swappable modules are operationally important and the tested host-to-optics path meets reach and error targets without DSP/CDR. Choose CPO when switch-level density or electrical-path limits justify deeper integration and the platform can support its thermal, packaging, reliability, interoperability, and repair model. In both cases, make the decision from measured, like-for-like system data—not an isolated wattage, projection, or vendor example.
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