Point2 teamed up with civil engineers from the Korea Advanced Institute of Science and Technology. Collectively, they created the first-ever technological solution to permanently solve the age-old dilemma of rack data congestion. The IEEE Journal of Solid-State Circuits has just published a feature story on this transformational technology. It implements a 28-nm CMOS technology, not exactly state-of-the-art since 2010, but it brings huge improvements in efficiency and performance.
As data demands increase, especially with Nvidia’s ambitious plans to boost the maximum number of GPUs per system from 72 to 576 by 2027, Point2’s innovations could not have come at a more critical time. The company’s founder, Dave Welch, was an early pioneer in photonics technology. He speaks about the urgency for better answers to address the realities of data transmission today.
Point2’s disruptive technology goes head to head with optical technology and traditional copper-based cables. The system embeds data transmission within a novel waveguide that extends the communication range up to 20 meters. This innovation compensates for congestion problems in oversubscribed data centers.
Transformative e-Tube Cable Design
Point2’s solution is based on the creation of the revolutionary e-Tube cable. Even more remarkable, its innovative design fits in only half the diameter of a typical 32-gauge copper cable. This small size sure does pack a punch! This new fiber can achieve distances of up to 20 times farther than traditional cables, a new leap in data transmission.
The e-Tube cable, which is attached to the e PPE, has eight thin polymer waveguides. Each waveguide is capable of transmitting an amazing 448 gigabits per second. Welch highlighted the technological leap this represents:
“If I didn’t have to be at [an optical wavelength], where should I be?” – Dave Welch
By utilizing a proprietary technology on a single silicon chip, Point2’s system directly converts incoming digital data streams into modulated millimeter-wave frequencies. This conversion process is fundamental to improving data transmission between various sources at blazing fast rates and decreased latency. Compared to traditional optical systems, Point2’s system consumes only one-third of the energy. It does so at one-third of the cost, overlapping a compelling economic benefit with the creative design for would-be adopters.
Competitive Edge Over Optical Systems
One of the most important benefits of Point2’s technology is its lower latency. Compared to traditional optical solutions, the e-Tube cable latency can be as low as one-thousandth. Production of its second-generation cable is already underway, now seeing losses of 0.3 decibels per meter. This constitutes a dramatic improvement over the much greater losses observed with standard copper cables at transmission speeds of 224 gigabits per second.
Point2 is preparing to bring manufacturing for its high-capacity 1.6-terabit-per-second cable into production later this year. Its game-changing innovations are going to change the bar for the industry. This is another area where a major part of the cable-and-connector ecosystem heartily embraces hyperscalers. Such backing is an essential selling point for those looking for a durable, steadfast, and effective data solution.
“Electronics have been demonstrated to be inherently more reliable than optics.” – Dave Welch
With these rapid developments, the increasing need for cost-effective data transmission solutions is fueling data center transformation. Point2’s technology would be foundational to accomplishing that demand. Industry leaders such as Nvidia are taking GPU integration in revolutionary directions. At the same time, Point2’s e-Tube cable provides the fundamental infrastructure backbone that better positions us to stay ahead of computing power advances.
Market Implications and Future Developments
According to industry experts, customers really like fiber optics because of the speed. They’re often left frustrated by the intricacies of photonics. Welch remarked on this sentiment:
To this end, Point2 is current testing market and is iteratively improving its technology. To that end, it should offer an intuitive, accessible experience without sacrificing power, creating a compelling option for enterprises looking to modernize their data center environments.
“Customers love fiber. But what they hate is the photonics.” – Dave Welch
As Point2 continues to refine its technology, it aims to offer an alternative that balances performance with ease of use, potentially making it an attractive option for organizations looking to modernize their data center operations.

