Ciena has announced its acquisition of Nubis Communications for $270 million, aiming to enhance data center connectivity for AI-driven workloads. This all-cash deal will enable Ciena to access a suite of advanced optical and electrical interconnect technologies specifically designed for high-performance data centers.
Headquartered in New Providence, New Jersey, Nubis brings a team of over 50 skilled engineers and cutting-edge technology that will bolster Ciena’s capabilities to meet the growing demands of AI’s impact on data traffic patterns. This acquisition is a key move in Ciena’s strategy to broaden its influence within the data center sector.
As AI continues to surge in training and inference, networks must adapt to new requirements for high-density, low-latency connections to manage substantial data volumes effectively. By incorporating Nubis’ innovations, Ciena intends to enhance its interconnect offerings while minimizing the limitations associated with traditional copper and digital signal processing solutions.
Nubis specializes in optical and electrical interconnect systems, featuring Co-Packaged Optics (CPO) and Near Packaged Optics (NPO) which provide up to 6.4 terabits per second of bandwidth with low power consumption and reduced latency. These advancements aim to align with the scale and efficiency needs of AI technologies. Moreover, when combined with Ciena’s serializer/deserializer technology, these innovations will create a powerful optical solution ideal for high-density, high-performance environments.
Nubis also contributes advanced analog electronics for Active Copper Cables (ACC), achieving 200 gigabits per second per lane over distances of up to four meters. This advancement facilitates the interconnection of more AI accelerators while lowering latency and energy consumption, positions Nubis as a solution to challenges beyond the reach of existing copper technologies.
In addition to the technological benefits, the merger will enhance Ciena’s engineering capacity, welcoming Nubis’s talented specialists to its research and development teams. This cultural compatibility is expected to accelerate innovation within the competitive landscape of data center infrastructure.
The acquisition has received approval from the governing boards of both companies as well as Nubis’s shareholders and is expected to finalize in Ciena’s fiscal fourth quarter of 2025, contingent upon standard regulatory conditions. This strategic acquisition emphasizes how crucial interconnect technologies are in supporting the evolving needs of artificial intelligence and the overarching digital economy.
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