While the hype around GPUs and data centres continues to build, there is an enormous amount of critical technology needed to support it. And POET Technologies and Mitsubishi Electric are partnering up to build a new hardware breakthrough.

‍What’s happening:‍

• POET Technologies (NASDAQ: POET) and Mitsubishi Electric have entered into a new partnership to co-develop integrated optical engine chipsets for pluggable transceivers
  

Why it matters:‍

• Integrated optical engine chipsets for pluggable transceivers are critical for speeding up throughput as well as reducing latency for artificial intelligence applications and cloud computing
  
• With the incredible boom in demand for new data centres, the importance of breakthrough hardware and technology is reaching a new level of importance in order to develop next generation artificial intelligence technology and maximize the efficiency of training new models
  

By the numbers:‍

• 30 different patents have already been granted to POET Technologies to protect their innovative hardware and intellectual property
  

Going deeper:‍

• Mitsubishi Electric and POET Technologies plan to collaborate on demonstrating the new co-developed products to large scale customers who are building out artificial intelligence infrastructure once they have successfully completed initial product designs
  
• POET Technologies has been a first mover in the development of optical modules and optical interposers which are critical for artificial intelligence processors, software and end users
  
• Multiple technology giants are already existing customers of POET Technologies, including Foxconn and others
  

Market reaction:‍

• Shares of POET Technologies have surged +70% since the announcement

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