New Hollow-Core Fiber Aims to Speed Up AI

Hollow-core fiber (HCF) guides light through a central channel filled with air or gas, unlike conventional solid-glass core fibers. This fundamental design difference allows light to travel at nearly its vacuum speed, approximately 300,000 km/s, which is about 50% faster than through traditional glass fiber (around 200,000 km/s). The result is a latency reduction of roughly 30-33%, a critical advantage for time-sensitive applications. This ultra-low latency is paramount for AI data centers, where massive clusters of GPUs require constant, high-speed communication for training and inference tasks. Reduced delay between servers, even by microseconds, minimizes GPU idle time and boosts overall training efficiency. For AI clusters distributed across multiple data centers, HCF can increase the maximum viable distance between facilities by 50%. Beyond latency, HCF offers lower signal loss (attenuation) and can handle higher optical power with minimal signal distortion (low nonlinearity). This means data can travel longer distances with fewer amplifiers, potentially reducing network cost and complexity. Companies like Microsoft and service providers such as British Telecom have been actively involved in pushing HCF technology forward through trials and deployments. The market for next-generation optical fibers, including hollow-core, is projected to grow significantly, reaching over $1 billion by 2031, driven by the demands of AI, 5G, and other data-intensive applications. Yangtze Optical Fibre and Cable (YOFC), a major Chinese provider of optical communication equipment established in 1988, is a key player in this expanding market. In Turkey's startup ecosystem, AI is a prominent sector, accounting for a quarter of all investment deals in 2025. While early-stage seed funding remains strong, there is a recognized gap in later-stage domestic funding, prompting many startups to relocate after initial rounds. Fintech and gaming have historically captured the largest share of capital, but deep tech and AI are identified as key future growth areas. There are 58 deep tech AI companies in Turkey, which have collectively raised $17.3 million. Although overall VC investment in Turkish startups saw a 45% decrease in 2025 to $589 million, in line with broader European trends, corporate VC participation remains strong and the number of early-stage deals shows resilience compared to the US and EU. Infrastructure advancements like HCF are foundational for the high-performance computing needs of Turkey's growing AI and deep tech sectors.