- Nubis Communications, a business that specializes in ultra-compact, low-power optical and electrical interconnects for AI-centric systems, will be acquired by Ciena.
- The US$270 million deal is anticipated to completion in Ciena’s fiscal Q4 2025, subject to customary shareholder and regulatory approvals.
What happened: Ciena buys Nubis to bolster AI-ready data centre interconnects
Ciena has agreed to purchase Nubis Communications in a transaction worth US$270 million in cash. The acquisition was approved by both companies’ boards and by Nubis’ shareholders, and is expected to complete in Ciena’s fiscal Q4 2025, subject to customary regulatory conditions.
Nubis is known for its technologies in ultra-compact, low-power optical and electrical interconnects aimed at accelerating and optimising data centre performance for AI systems. Key innovations include Co-Packaged and Near-Packaged Optics (CPO/NPO) capable of supporting up to 6.4 Tb/s full-duplex bandwidth, and high-speed, low-latency “Active Copper Cables” (ACC) for rapid data movement across racks.
Ciena says Nubis’ technologies will complement its existing high-speed interconnect portfolio, helping to manage increasing AI traffic inside data centres. The acquisition follows strong recent performance for Ciena, with data centre growth cited alongside demand from service providers, hyperscalers and emerging neoscalers as major drivers.
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Why it’s important
- Capacity to support AI demand: Data center operators need highly efficient, high-bandwidth, low-latency interconnects as artificial intelligence workloads grow quickly. Ciena is better positioned to meet such technical expectations as a result of the acquisition.
- Strategic technology fit: Nubis’ offerings in CPO/NPO and ACC are specialised, and acquiring them gives Ciena in-house control over components that might otherwise require partnerships or outsourcing, potentially reducing development costs and accelerating product innovation. However, integration risks remain: bringing highly technical units into a larger organisation can dilute focus or introduce delays.
- Competitive implications: Businesses who can provide more effective internal data center connectivity may have an advantage in the competition to develop AI-ready infrastructure. Ciena is placing a wager that acquiring these connected technologies will provide it with sustained profitability and distinction. Customers, however, might want evidence that the stated latency reductions, power savings, and performance are achieved in actual implementations.
