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

Sponsored Content

How to shift your workforce from AI experimentation to adoption

By Jessica Aftimus Rosa

The real-world economic offshoots of sovereign AI

By Deborah Aarts
Illustration of a plane flying above a mailbox

Increasing healthcare access across Canada

By Deborah Aarts
Paid promotional content

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 looking down the length of a tunnel with conduits along its sides and railroad-style tracks on its floor. There are two workers in the distance wearing hardhats and headlights and walking toward the camera.
The Big Read

Cameco’s high-stakes bid to be Canada’s next nuclear champion

By Joanna Smith
A group shot of people, many wearing branding black winter jackets, posed in front of an armoured vehicle. Several are sitting on the vehicle, in front of its gun turret.
News

MaRS joins forces with accelerator Vimy Forge to help defence startups

By David Reevely
A side shot of Mark Carney walking up a set of stone steps into the Parliament buildings. He's wearing a dark suit. The straps of a case or tote bag are visible in his right hand.
News

How the Liberals plan to keep their promise on one-year project approvals

By David Reevely
A shot of Dinesh Kumar Patnaik speaking to an interview while seated at an office desk. He's wearing a jacket and open-necked shirt and there is a small Indian flag among the objects on the desk.
Exclusive

India seeks tariff rate quotas for crops, recognition of its economic heft as trade talks with Canada near finish line

By Joanna Smith

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

News

Canada’s landmark ESG case heads to a final decision

By Anita Balakrishnan

Briefing

Matthew Proud-led SPAC threatens to pull out of merger with UniUni

By Catherine McIntyre   |   Sep 25, 2026

Ottawa awards Mitacs $162M to create AI-focused work placements

By Murad Hemmadi   |   Sep 25, 2026

Ontario puts $30M into Vector Institute for AI adoption

By Murad Hemmadi   |   Sep 25, 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

News

Trump steps up effort to block Canadian goods from U.S. procurement—but his order leaves a lot untouched

By Joanna Smith   |   Sep 17, 2026
A nighttime shot of Donald Trump holding his hand while speaking. He's wearing a red hat with "USA" emblazoned on the front.
The Big Read

Cameco’s high-stakes bid to be Canada’s next nuclear champion

By Joanna Smith   |   Sep 23, 2026
A shot looking down the length of a tunnel with conduits along its sides and railroad-style tracks on its floor. There are two workers in the distance wearing hardhats and headlights and walking toward the camera.
Analysis

The ‘red line’ in U.S. trade talks that sets Canada apart from other countries

By Joanna Smith   |   Sep 14, 2026
Donald Trump holding up a board bearing the names of countries and tariff rates. He's standing behind a lectern bearing the U.S. presidential seal.
Exclusive

India seeks tariff rate quotas for crops, recognition of its economic heft as trade talks with Canada near finish line

By Joanna Smith   |   Sep 21, 2026
A shot of Dinesh Kumar Patnaik speaking to an interview while seated at an office desk. He's wearing a jacket and open-necked shirt and there is a small Indian flag among the objects on the desk.
Commentary

Carmichael: The Canada Investment Summit did what it needed to do

By Kevin Carmichael   |   Sep 18, 2026
Prime Minister Mark Carney, wearing a dark suit and tie, stands at a wooden podium in a dark room. The silhouettes of audience members are visible in the foreground. In the background, there is a backdrop depicting a cloudy sky and mountains.
News

MaRS joins forces with accelerator Vimy Forge to help defence startups

By David Reevely   |   Sep 22, 2026
A group shot of people, many wearing branding black winter jackets, posed in front of an armoured vehicle. Several are sitting on the vehicle, in front of its gun turret.

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

The username or email you provided does not exist. Please try again.

or

[wppb-login]

I don’t have an account