Summary of NTT Investor Day - October 06, 2025 Company and Industry Overview - **Company**: NTT Inc. - **Industry**: Telecommunications and Optical Computing Key Points and Arguments 1. **Introduction of ION Initiative**: NTT is focusing on the ION initiative, which aims to develop low power optical computing technologies to support the growing demands of the AI era [6][10][11] 2. **Optical Computing Focus**: The presentation emphasized the transition from electronic circuits to optical technology to address issues like power consumption, speed, and heat generation in data centers [12][14][15] 3. **AI Market Growth**: The AI market is expected to grow 20 times compared to 2021, leading to increased power consumption in data centers [14][15] 4. **Power Consumption Reduction**: NTT aims to reduce total infrastructure power consumption by optimizing network and device power usage, and by utilizing renewable energy sources [15][16] 5. **Photonics Electronics Convergence (PEC)**: The development of PEC devices is crucial for enhancing power efficiency in optical computing, with a roadmap for PEC1, PEC2, and PEC3 [22][42][47] 6. **Commercialization Timeline**: NTT plans to commercialize PEC2 by Q4 next year, with a production capacity of 5,000 units per line to meet AI demand [56][60] 7. **Partnerships**: Collaborations with companies like Broadcom and Acton Technology are essential for the development and commercialization of optical computing technologies [61][68] 8. **Market Size and Demand**: NTT anticipates a significant market for PEC devices, with projections of over 1,000,000 units needed annually, primarily driven by hyperscalers in the US [84][85] Additional Important Content 1. **Competitor Landscape**: NTT identifies competitors such as NVIDIA and Broadcom, emphasizing the need for collaboration and multi-supplier ecosystems to drive innovation [78][80] 2. **Technological Advantages**: NTT's unique socket-type optical engine allows for easier replacement and maintenance compared to competitors' soldering methods, providing a competitive edge [64][67] 3. **Environmental Considerations**: The shift to optical technology is positioned as a more eco-friendly solution for data centers, reducing reliance on traditional power sources [30][41] 4. **Future Projections**: The expected growth in AI computing capacity necessitates a shift to optical interconnects, as traditional copper connections will not suffice for the increasing bandwidth demands [97][108] This summary encapsulates the core discussions and insights from the NTT Investor Day, highlighting the company's strategic direction in optical computing and its implications for the telecommunications industry.

AI Market Growth and Power Consumption - The global AI market is predicted to grow 20 times compared to 2021, reaching $1.8 trillion by 2030[6, 7] - Data center power consumption is predicted to double by 2030 compared to 2024, reaching 945 TWh[6, 7] - GPU servers consume 5.9 times the power of traditional servers[211, 212] IOWN Technology and Solutions - IOWN consists of the All-Photonics Network (APN), Photonics-Electronics Convergence devices (PEC), and Data-Centric Infrastructure (DCI)[3, 4] - IOWN 2.0 photonics-electronics convergence device was used in the AI camera analysis at the NTT Pavilion at the Osaka-Kansai Expo, achieving a computer with 1/8 the power consumption[23, 24] - NTT's GPU as a Service delivers compute resources when and where needed, based on AI utilization[244, 245] Opto-Electronic Convergence and Roadmap - In large-volume electrical communications, power consumption increases dramatically as the transmission distance increases, while optical communication has the advantage of hardly increasing power consumption[15, 16, 35, 36] - IOWN 3.0 will achieve dramatic power reductions by using the advanced photonics-electronics convergence device PEC-3 to achieve optical wiring between semiconductor packages such as CPUs and GPUs[37, 38] - Commercialization target for 6.4T Optical engine & 102.4T CPO-SW Module is Q4 2026, with manufacturing capacity expansion underway (5,000 Units per Line per Month)[95] Collaboration and Partnerships - IOWN photonic disaggregated computing is realized by combining NTT's photonics-electronics convergence technology with the latest technologies from chip/switch manufacturers[26, 31] - Partnership Established: Broadcom + Accton[99] - Broadcom Tomahawk 6 enables 512 XPUs connected in a single hop with 200G PAM4, scaling up cluster size compared to alternatives[191, 192]