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Near-packaged optics (NPO) is emerging as a key solution to reduce interconnect power in AI data centers. In this interview, LightSpeed Photonics explains how it works and why it matters. 👉 Read the full article: https://thedatacenterengineer.com/new... As AI and high-performance computing workloads scale, interconnect power is becoming a major constraint in modern data centers. Traditional pluggable optics require long electrical paths, increasing signal loss and power consumption. Near-packaged optics (NPO) moves optical engines closer to the compute ASIC, reducing power per bit, improving bandwidth density, and minimizing DSP overhead. In this interview, we cover: What near-packaged optics (NPO) is The “shoreline problem” in chip design Why pluggable optics consume so much power NPO vs co-packaged optics (CPO) The future of AI data center interconnects 00:00 Introduction 01:09 What is near-packaged optics (NPO)? 02:20 The shoreline problem explained 04:42 Why pluggable optics use so much power 08:22 NPO vs CPO (co-packaged optics) 12:24 AI cluster and system impact 17:36 Future of data center interconnects 20:00 Power breakdown and scaling challenges