The company that wires AI data centres is raising prices because hyperscalers have no alternative
TL;DR
Fujikura is raising fibre-optic cable prices as nearly every US hyperscaler places orders and supply stays tight. The CEO says the company will beat its forecast despite shares falling 40% from their May peak.
Fujikura, the Tokyo-based fibre-optic cable manufacturer, is raising prices on the cables that connect servers inside AI data centres. CEO Naoki Okada told Bloomberg the company is on track to beat its own forecast thanks to sustained demand from nearly every major US hyperscaler.
“We supply a valuable product,” Okada said. “We will raise prices a little more.”
Why cables are a bottleneck
An AI data centre requires far more fibre-optic cable than a conventional cloud facility. The tiny glass strands transmit data via pulses of light between GPUs, and the sheer volume of data that AI training and inference produce has made cabling a structural constraint on how fast...
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