Co-Packaged Optics (CPO) is a technology and design approach where optical components, such as lasers and photodetectors, are integrated alongside electrical components, like Application-Specific Integrated Circuits (ASICs), within the same package. As datacenters strive to meet escalating demands for efficiency and bandwidth, particularly with the integration of AI and ML technologies, optics is poised to play a crucial role in shaping the future of interconnect architecture and performance. This integration significantly reduces the. 2026 will mark the year when co-packaged optics (CPO), a form of optoelectronic integration, enters the full-scale mass production and practical roll-out phase. CPO enhances interconnect bandwidth and energy efficiency by integrating optics and electronics.