What it is
An interconnect is the system of hardware and software that facilitates data transfer between various parts of a computing system, such as between a CPU and GPU, between multiple GPUs on a single board, or across numerous servers in a compute cluster. These connections can be internal, like PCIe lanes, or external, such as Ethernet, InfiniBand, or proprietary high-bandwidth links. Their speed and efficiency are critical for overall system performance.
In AI compute clusters, high-bandwidth, low-latency interconnects are essential for efficient model training, allowing GPUs to quickly share data and synchronize calculations. Bottlenecks in the interconnect can limit the effective scaling of AI workloads, even with powerful chips. Investors monitor advancements and adoption of new interconnect technologies as they directly impact the performance and cost-efficiency of AI infrastructure.
Why it matters
Interconnects are critical for scaling AI compute, enabling powerful chips to work together efficiently. Their development directly impacts the performance and cost of AI infrastructure, influencing related technology investments.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice