Credo unveiled its Bluebird Digital Signal Processor (DSP), a chip designed to power 1.6 Tb/s optical transceivers while consuming significantly less energy than existing solutions.

The processor aims to address the bottleneck in AI infrastructure of moving data between GPUs at speeds fast enough to support advanced AI model training and inference.

According to Credo, rival 1.6 Tb/s transceivers typically consume more than 20 watts of power, creating cooling and power delivery challenges that limit their deployment in data centers. The firm claims, however, that its new Bluebird DSP reduces power consumption to under 20 watts while maintaining ultra-low latency below 40 nanoseconds.

The hardware is capable of supporting 224 Gb/s per lane using PAM4 modulation and is available in configurations supporting both 800G and 1.6T optical transceivers. The company emphasized the chip's role in driving innovation while creating long-term value for optical module partners.

The processor includes built-in error correction capabilities for fiber runs extending beyond 2 kilometers, telemetry features for network monitoring, and flexible performance optimization that can be adjusted based on deployment needs.

Credo’s DSP launch comes after the firm settled a patent dispute with Amphenol. Having raised infringement concerns with the U.S. International Trade Commission (USITC) last month, the pair reached an agreement in August, and the lawsuit has since been dismissed.

A similar agreement was reached with Volex, while disputes with Molex and TE Connectivity appear ongoing.