Summary of Lightmatter Passage Conference Call Industry and Company Overview - **Industry**: AI and Photonic Computing - **Company**: Lightmatter, known for its Passage M1000 "superchip" platform utilizing photonic technology to enhance AI training capabilities [1][3][13] Core Points and Arguments 1. **Exponential Growth of AI Models**: The scale of AI models has increased dramatically, with models now reaching hundreds of billions or even trillions of parameters, necessitating thousands of GPUs for training [3][4] 2. **Challenges in AI Training**: The industry faces significant challenges in scaling AI training, particularly due to the slowdown of Moore's Law and the limitations of traditional electrical interconnects, which create bottlenecks in data communication and synchronization [7][10][11] 3. **Lightmatter's Solution**: The Passage M1000 platform addresses the interconnect bottleneck by employing a 3D photonic stacking architecture, integrating up to 34 chiplets on a single photonic interposer, achieving a total die area of 4,000 mm² [13][14] 4. **Unprecedented Bandwidth**: The Passage platform delivers a total bidirectional bandwidth of 114 Tbps and 1,024 high-speed SerDes lanes, allowing each chiplet to access multi-terabit-per-second I/O bandwidth, effectively overcoming traditional I/O limitations [17][21] 5. **Comparison with Competitors**: Lightmatter's approach contrasts with other industry players like NVIDIA and Cerebras, who focus on maximizing single-chip performance or building ultra-large chips. Lightmatter emphasizes optical interconnects to achieve high bandwidth communication across chiplets [30][42][44][52] Additional Important Insights 1. **Nature Paper Validation**: A study published in *Nature* demonstrated the feasibility of photonic processors for executing advanced AI models, achieving near-electronic precision, which complements Lightmatter's focus on interconnect solutions [22][23][82] 2. **Future of AI Acceleration**: The combination of Lightmatter's optical interconnects and the advancements in photonic computing suggests a paradigm shift towards hybrid electronic-photonic architectures, breaking through performance ceilings in AI acceleration [82][83] 3. **Scalability and Efficiency**: Lightmatter's Passage aims to simplify AI deployments and improve efficiency by collapsing datacenter-level communication into a single "superchip," potentially offering better cost efficiency and flexibility compared to traditional methods [42][52][78] Conclusion - The emergence of Lightmatter's Passage platform represents a significant advancement in addressing the challenges of modern AI training, providing a breakthrough pathway through innovative photonic interconnect technology [84]

Core Viewpoint - Nvidia's latest financial report reinforces global AI computing power expansion expectations, benefiting the upstream optical module and optical connectivity industry chain, leading to an increase in valuations [1] Group 1: Nvidia's Financial Performance - Nvidia reported FY26Q2 revenue of $46.7 billion, a year-on-year increase of 56% and a quarter-on-quarter increase of 6%, exceeding the previous guidance of $45 billion [1] - The revenue guidance for FY26Q3 is set at $54 billion (±2%), indicating a return to high growth after eliminating the impact of H20 [1] Group 2: Data Center Revenue Growth - Data center revenue reached $41.1 billion, with a quarter-on-quarter growth of 5% and a year-on-year growth of 56%, accounting for over 80% of total revenue [2] - The Blackwell architecture products are driving this growth, with Blackwell data center revenue increasing by 17% quarter-on-quarter [2] Group 3: Importance of Networking - Networking revenue reached $7.3 billion, showing a year-on-year growth of 98% and a quarter-on-quarter growth of 46%, significantly exceeding market expectations [3] - The rapid growth in networking highlights its increasing importance in high-performance demands, particularly as AI clusters become more modular and distributed [3] Group 4: China's Overseas Computing Power Industry - The Chinese overseas computing power industry is transitioning from "performance realization" to "expectation amplification," indicating a second market phase [4] - Major Chinese companies are meeting the demand for high-speed optical modules and switching equipment from overseas cloud giants, playing a key role in advanced network technologies [4] Group 5: Opportunities in Optical Communication - The optical communication industry is expected to benefit from the Scale-Up trend, with various segments from optical chips/components to fiber optics and system integration poised for growth [5] - The evolution of optical modules from 400G to 800G and then to 1.6T is accelerating, with significant deployments expected from major players like Alibaba Cloud and Tencent [5] Group 6: Structural Opportunities in Fiber Optics - Multi-mode fiber optics are expected to show significant cost advantages in short-distance, high-density scenarios, with increased demand for high-density multi-core fiber cables and connectors [6] - Microsoft plans to deploy 15,000 kilometers of hollow-core fiber within two years, indicating a shift towards innovative transmission media [6]