Kopin & Fabric.AI back MicroLED optical links for AI

Kopin has announced a collaboration with Fabric.AI to develop MicroLED-based optical interconnect technology for AI infrastructure. Fabric.AI has placed an initial development order worth USD $15 million.

The work will focus on replacing copper links between GPUs and other high-performance processors in data centres with optical connections based on MicroLED technology. At the centre of the project is a demonstration chipset for what the partners call Neural I/o.

The proposed design uses Kopin's MicroLED and bi-directional NeuralDisplay architecture to turn programmable MicroLED pixels into optical transceivers. The companies say the approach is intended for GPU-to-GPU, board-to-board and rack-to-rack communications inside AI systems.

Bandwidth and electricity use have become central concerns for AI data centre operators, where dense clusters of accelerators exchange large volumes of data and generate substantial heat. Conventional copper interconnects remain widely used, but as systems scale up, they can add to power consumption and cooling demands.

A key aim of the collaboration is to move data with light rather than electrical signals carried over copper. The approach would also avoid laser-based systems used in some optical networking designs.

Fabric.AI is the system designer for the project, while Kopin will manufacture the Neural I/o chipsets on an exclusive basis under the agreement. Kopin also holds a 19.9% stake in Fabric.AI.

Independent industry analysis included in the announcement pointed to a broader market challenge in interconnect design. AI deployments at scale have increased demand for faster communication between chips, while operators also face tighter power limits.

"The two biggest challenges facing virtually every at-scale AI deployment are power and bandwidth," said Matt Kimball, Principal Analyst at Moor Insights & Strategy.

"The ability to enable chip-to-chip and system-to-system connectivity in a way that enables the full throughput of the accelerator without taxing the power budget has been a persistent challenge. With its Neural I/o technology, built on MicroLED technology, Kopin presents a unique, compelling value proposition," Kimball added.

Technology shift

Kopin is best known for microdisplays and optical components used in defence, industrial and consumer products, including virtual reality and augmented reality systems. The collaboration marks an effort to apply that work in a different market, as AI infrastructure spending drives demand for new approaches to communication inside servers and racks.

Kopin said its experience in MicroLED materials, process development and manufacturing formed the basis of the partnership. It also highlighted its position as a US-based producer of MicroLED displays, although the current project is focused on AI data centre hardware rather than display applications.

Michael Murray, Chief Executive Officer of Kopin, said the company sees the effort as a response to a growing bottleneck in AI systems.

"The marriage of our MicroLED technology with our bi-directional NeuralDisplay architecture is exactly what the industry needs to break through current interconnect bottlenecks. With Kopin and Fabric.AI's jointly developed Neural I/o technology, we are creating a faster, more efficient optical interface that is expected to be uniquely capable of supporting GPU-to-GPU communication at the massive scale this market requires - it's the right technology at the right moment to power the next wave of AI acceleration," said Murray.

He also linked the project to a broader expansion beyond Kopin's established markets.

"What makes this opportunity particularly compelling for Kopin is the breadth of its application. Our MicroLED and NeuralDisplay capabilities, originally developed for virtual reality and augmented reality applications in the defense and industrial markets, are now being extended into one of the fastest-growing segments of the technology market. We believe this collaboration with Fabric.AI expands Kopin's market opportunity dramatically as a strategic enabler of the coming wave of AI infrastructure, positioning us to create significant long-term value for our shareholders," Murray said.

Data centre focus

Fabric.AI describes itself as a fabless semiconductor company focused on infrastructure for AI data centres, which it refers to as AI factories. In the partnership, its role is centred on system-level design as well as marketing and sales for that segment.

Josh Silverman, Chief Executive Officer of Fabric.AI, said the companies viewed the architecture as a foundation for future data centre communications.

"MicroLED-based interconnects are the leading edge in infrastructure for AI data centers. Kopin's bi-directional MicroLED technology is the foundation of our optical interconnect architecture. Their expertise in MicroLED materials and fabrication, combined with our innovative system-level design for AI factories, creates a patent-protected technology position that we believe will define the next generation of data-center communication. This is a true technology partnership - Kopin brings the enabling hardware, and together we are building the infrastructure layer that AI factories will require to scale," said Silverman.

The initial USD $15 million order gives the project an early commercial marker as the companies move to build and demonstrate the chipset.