Global photonics race amid AI rivalry

Researchers in Scandinavia demonstrated a photonic neuron that mimics several brain functions in a single component, highlighting its potential to drastically lower the power needed for AI hardware. The prototype, described as an energy‑efficient alternative to current data‑centre‑intensive models, underscores a drive to process AI information where it is generated.

At the same time, the broader photonics industry is experiencing a surge of AI‑related investment. Large capital flows, exemplified by Nvidia’s multi‑billion‑dollar acquisitions of optics firms, are fueling new financial instruments such as Europe’s first photonics exchange‑traded fund. Nonetheless, analysts note that Europe’s share of the global photonics market has slipped while China’s has risen, prompting concerns that European firms may need to contend with Chinese competitors despite efforts to secure more sustainable supply chains under the EU’s Chips Act.

Together, these developments illustrate a growing global competition to harness photonic technologies for AI, with the United States, China and Europe each seeking leadership through research breakthroughs, massive investment and policy measures.