Skip to content

Canada's Business and Tech Newsroom

  • Professional Subscription
  • Partnerships & Advertising
  • Licensing & Syndication
Log In Subscribe
Welcome,
  • My Account
  • Log Out
  • Business
  • Tech
  • National
  • The Big Read
  • Briefings
  • Commentary
Search
Log In Subscribe
Welcome,
  • My Account
  • Log Out
News

IBM says it’s made a major AI data-centre breakthrough

TORONTO — IBM has developed new technology that it says will make data centres as fast as light and much more efficient by multiplying links in the hardware that fills them.

News

IBM says it’s made a major AI data-centre breakthrough

The new hardware, made in the U.S. and Canada, can transfer a lot more data between chips, speeding up the training of AI models while reducing power consumption

By Murad Hemmadi
Two gloved hands of an IBM employee working on a piece of optics technology.
An IBM worker testing the firm’s new co-packaged optics technology at its lab in Bromont, Que. Photo: IBM/Handout
Dec 9, 2024
A A
A Small A Medium A Large
Share

Gift

Share

TORONTO — IBM has developed new technology that it says will make data centres as fast as light and much more efficient by multiplying links in the hardware that fills them.

Talking Points

  • IBM is touting a new device it says can speed up the training of AI models by moving more information between chips in data-centre servers 
  • The tech giant claims its co-packaged optics technology has more bandwidth than anything on the market. It developed the prototype at facilities in Albany, N.Y. and Bromont, Que.

The prototype system, a joint production between engineers in the U.S. and Canada, connects chips together using polymer fibres and a new kind of controller. IBM says the device significantly boosts the speed and quantity of data moving through data centres, which could be a boon for the AI industry. The new technology could allow developers to train large language models five times quicker than existing systems, said Mukesh Khare, IBM’s general manager of semiconductors.

By tackling the “communication bottleneck” he said, the chips “can talk to each other much faster, and that can really save us power.”

IBM engineers developed the new co-packaged optics component at its semiconductor research lab in Albany, N.Y., then figured out how to build it at the firm’s facility across the border in Bromont, Que. 

The firm developed special materials including glues for the device so it could pass stress and temperature tests, said John Knickerbocker, a distinguished engineer at the company. “It’s ready, from a technology perspective, to be scaled into manufacturing.”

Related Articles

Prime Minister Justin Trudeau, wearing a grey suit and blue tie, speaks at a lectern before a backdrop of onlookers in a large room with fluorescent lights and a white ceiling

Canada puts $59.9M into IBM’s $1B Quebec semiconductor packaging expansion

By Murad Hemmadi

Why an AI hardware unicorn is expanding in Canada

By Murad Hemmadi

As part of the production process, the device will be bundled with the chips clients are using. IBM’s Bromont plant will do some manufacturing, while the company will also license the technology to customers that want to build their own versions. 

Other firms, including Ottawa-based Ranovus, already sell co-packaged optics systems for AI data centres. But IBM’s new technology can fit six times as many connectors on the edge of a chip as any competitor by using polymer rather than wider glass fibres, claimed Knickerbocker.

Telecommunications companies and data-centre operators already use fibre optics to carry data  over long distances. IBM’s new device brings that technology down to the semiconductor level, Khare said. While hardware giants have churned out ever-faster processors, “the communication on how these chips can talk to each other is not keeping up.” 

Gift the full article

The new device could be a test case for policymakers’ efforts to build an integrated semiconductor cluster in the continent’s northeast. In April, the Liberal government awarded IBM $59.9 million for a $226.5-million project to expand its Bromont facility and do R&D there. Across the border, the Biden administration has pledged US$825 million under the U.S. CHIPS and Science Act for a new R&D facility in Albany. 

#artificial intelligence #IBM #semiconductors #Tech

Loading...

Thanks for sharing!

You have shared 5 articles this month and reached the maximum amount of shares available.

Close
This account has reached its share limit.

If you would like to purchase a sharing license please contact The Logic support at [email protected].

Close
Want to share this article?

Upgrade to all-access now

Close
Gift the full article!

You have gifted 0 article(s) this month and have 5 remaining.

Copy link and gift
Copy Link
Email to a friend
Send Email
Gift on Social Media

Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.

Two gloved hands of an IBM employee working on a piece of optics technology.

Photo: IBM/Handout

Most Popular This Week

A shot of a placard on a table reading "Let Alberta Decide." There is a person out of focus in the foreground wearing a cowboy hat.
The Big Read

What Alberta’s corporate heavyweights really think about separation

By Meghan Potkins
A person in glasses and a blue top is sitting and typing on a laptop in an office. A desktop screen next to the laptop displays some blurred-out coding work.
News

A niche white-collar role is becoming the AI industry’s hot new job

By Anita Balakrishnan
A logo that reads AI in blue lettering against a light yellow background.
News

What happened when a VC firm let AI do almost everything

By Catherine McIntyre
News

Canada joins the movement to make AI more open source

By Murad Hemmadi

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

A high-angle shot of workers sorting and packing lettuce along conveyors in an industrial facility.
Commentary

Carmichael: The age-old trade problem Carney’s trying to solve with food

By Kevin Carmichael

Briefing

GFL stock jumps on report of takeover interest

By Anita Balakrishnan   |   Jul 3, 2026

McKinsey to challenge internal leaders on AI plans under new leadership structure

By Anita Balakrishnan   |   Jul 3, 2026

Lobby group can participate in crypto miners’ lawsuits against Hydro-Québec, judge rules

By Martin Patriquin   |   Jul 3, 2026

Best business newsletter in Canada

Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.

Exclusive events

See the bigger picture with reporters and industry experts in subscriber-exclusive events.

Membership in The Logic Council

Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.

Recent Popular Stories

Analysis

It turns out Trump does need something from Canada—aluminum

By Joanna Smith   |   Jun 25, 2026
A close-up of a made-in-Canada stamp on the end of a cylindrical piece of raw aluminum.
The Big Read

What Alberta’s corporate heavyweights really think about separation

By Meghan Potkins   |   Jul 2, 2026
A shot of a placard on a table reading "Let Alberta Decide." There is a person out of focus in the foreground wearing a cowboy hat.
News

What happened when a VC firm let AI do almost everything

By Catherine McIntyre   |   Jun 29, 2026
A logo that reads AI in blue lettering against a light yellow background.
News

A niche white-collar role is becoming the AI industry’s hot new job

By Anita Balakrishnan   |   Jun 30, 2026
A person in glasses and a blue top is sitting and typing on a laptop in an office. A desktop screen next to the laptop displays some blurred-out coding work.
Exclusive

Ssense has laid off photo and make-up teams and says AI will do much of their work

By Catherine McIntyre   |   Jun 22, 2026
News

Alberta to free up a huge amount of power to attract Big Tech and its data centres

By Meghan Potkins   |   Jun 24, 2026
A wide landscape shot of high-tension power lines over green and golden fields in rolling countryside.

Canada's most influential executives and policymakers are reading The Logic

  • CPP Investments
  • Sun Life Financial
  • C100
  • Amazon
  • Telus
  • Mastercard
  • bdc
  • Shopify
  • Rogers
  • RBC
  • General Motors
  • MaRS
  • Government of Canada
  • Uber
  • Loblaw Companies Limited
logic-logo

Canada's Business and Tech Newsroom

100% human-crafted journalism

Newsroom

  • News Tips
  • AI Policy
  • Editorial Disclosures
  • Story Pitches

Company

  • About Us
  • Terms of Service
  • Privacy Statement
  • Corporate Information

Contact

  • Contact Us
  • Advertise
  • FAQs
  • Work at The Logic

© 2026 The Logic Inc. All Rights Reserved.

Trusted by leaders

Error

Account creation failed.

Please email us at [email protected].

Create Account

[wppb-register form_name=”cozmo-registration-form-for-modal”]

I do have an account
Login
or

[wppb-login]

I don’t have an account