--- title: "Open Source Securities: Google TPU receives another large order, OCS demand may be raised" type: "News" locale: "en" url: "https://longbridge.com/en/news/282011075.md" description: "KaiYuan Securities released a research report stating that Anthropic has signed agreements with Google and Broadcom to obtain 3.5 GW of next-generation TPU computing power, which is expected to increase OCS demand. According to Cignal AI, the OCS market will be dominated by Google in 2025, with a scale of approximately $400 million, and will exceed $2.5 billion by 2029, with a compound annual growth rate of 58%. OCS technology can reduce the overall power consumption of AI computing clusters and data centers by more than 30%, and is expected to achieve large-scale commercial use in the future" datetime: "2026-04-08T09:24:04.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/282011075.md) - [en](https://longbridge.com/en/news/282011075.md) - [zh-HK](https://longbridge.com/zh-HK/news/282011075.md) --- # Open Source Securities: Google TPU receives another large order, OCS demand may be raised According to the information obtained by Zhitong Finance APP, Kaiyuan Securities released a research report stating that, based on Broadcom's disclosure, Anthropic has signed the latest agreement with Google (GOOGL.US) and Broadcom to obtain 3.5 GW of next-generation TPU computing power. **There is a certain proportional relationship between TPU and OCS, and the demand for OCS may increase accordingly.** According to Cignal AI, the OCS market will be dominated by Google in 2025, with an overall market size of approximately $400 million. By 2029, the OCS market size is expected to exceed $2.5 billion, with a compound annual growth rate of 58%. The rapid growth is mainly driven by the increasing demand for AI computing power from Google. The Google I/O 2026 Developer Conference may become the starting point for Google's new technology roadmap, further opening up incremental space for OCS demand. ## The main viewpoints of Kaiyuan Securities are as follows: **OCS may become a necessary option, expected to transition from experimental deployment to large-scale commercial use** According to Broadcom's disclosure, Anthropic has signed the latest agreement with Google and Broadcom to obtain 3.5 GW of next-generation TPU computing power, and there is a certain proportional relationship between TPU and OCS, which may lead to an increase in OCS demand. Optical Circuit Switch (OCS) refers to switching devices based on all-optical signals. Its working principle is to establish optical paths between any input and output ports by configuring optical switching matrices to achieve signal switching. OCS does not require optical-electrical/optical (O/E/O) conversion, thereby avoiding the bandwidth bottleneck and power consumption issues of traditional electrical switching under high-speed transmission, significantly reducing signal transmission delay and power consumption while improving hardware lifespan and lowering the probability of system failures. Industry technology research and practical verification indicate that OCS technology can help reduce the overall power consumption of AI computing clusters and data center optical interconnect systems by more than 30%. Currently, there are four technical routes for OCS: (1) MEMS solutions achieve optical path deflection by adjusting MEMS micro-mirror units; (2) Liquid crystal solutions utilize the electro-optic effect of liquid crystals and the cascading of crystal optical wedges to produce beam deflection; (3) Direct beam deflection/piezoelectric solutions use the electromechanical coupling effect of piezoelectric ceramics to drive the displacement and angle tilt of collimators; (4) Silicon photonic waveguide solutions achieve system interconnection through waveguide splicing. Among them, the MEMS solution is the fastest in commercial rhythm as the main solution provider for Google and Lumentum, while the liquid crystal solution is primarily promoted by Coherent. As the scale of AI clusters continues to expand, OCS is expected to gradually release its potential and open up a larger market space. **OCS demand has been validated, and the trend of all-optical switching is becoming increasingly clear** On February 3, Lumentum announced its FY2026 Q2 performance, stating that the company is rapidly expanding OCS production capacity to meet "extraordinary customer demand," with current order backlogs exceeding $400 million. The company's management also emphasized the growth potential of both OCS and CPO businesses. Additionally, the company expects that from 2025 to 2028, the compound annual growth rate of OCS shipments will exceed 150%, with a target of achieving over $1 billion in annualized revenue by 2027 On February 4th, Coherent announced its FY2026 Q2 performance, stating that it has exceeded 10 customers in the OCS sector, with backlog orders also showing a quarter-on-quarter increase. The company's management believes that the previous estimate of the OCS market size (approximately $2 billion in the coming years) may be overly conservative, and the actual figure could far exceed this number. On the demand side, Google’s self-developed OCS has been scaled in multiple generations of TPU clusters. The company disclosed that it will need approximately 15,000 300-port OCS switches in 2026, with about 12,000 designed internally and manufactured by Celestica, while the remaining approximately 3,000 will be purchased externally. NVIDIA positions OCS as an "architectural-level solution" for future AI factory networks, with clear application value and landing potential in both Scale-out and Scale-up scenarios. **Google Cloud Next & Developer Conference Approaching, Google Chain Expected to Welcome Exceeding Expectations Catalyst** Google Cloud Next '26 will be held from April 22-24 in Las Vegas, Nevada, focusing on enterprise-level AI, cloud innovation, and agent-based AI. The next-generation TPU architecture may be unveiled at the conference, showcasing the new architecture OCS ratio and product layout rhythm. The Google I/O 2026 Developer Conference will take place on May 19-20 in California, with live streaming open to the global audience. This conference will focus on showcasing the latest AI breakthroughs and updates on the company's products, covering numerous fields including Gemini and Android. According to Cignal AI, Google will dominate the OCS market in 2025, with an overall market size of approximately $400 million. By 2029, the OCS market size is expected to exceed $2.5 billion, with a compound annual growth rate of 58%, driven primarily by the increasing demand for AI computing power from Google. This conference may serve as the starting point for Google’s new technology roadmap, potentially further opening up incremental space for OCS demand. **Google Chain Related Targets** (1) Optical Modules & Optical Chips: Recommended targets include Zhongji Xuchuang (300308.SZ), Xinyi Sheng (300502.SZ), and Yuanjie Technology (688498.SH); benefiting targets include Changxin Bochuang (300548.SZ), etc. (2) Liquid Cooling: Recommended target is Yingweike (002837.SZ); (3) OCS: Benefiting targets include Tengjing Technology (688195.SH), Juguang Technology (688167.SH), Guangku Technology (300620.SZ), and Dekeli (688205.SH). (4) Server Power Supplies: Recommended target is Oulutong (300870.SZ). (5) Optical Devices: Benefiting targets include Changfei Fiber (601869.SH), Taicheng Light (300570.SZ), etc. **Risk Warning** 5G construction may fall short of expectations, AI development may not meet expectations, and China-U.S. trade frictions, etc ### Related Stocks - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [AVGO.US](https://longbridge.com/en/quote/AVGO.US.md) - [IXN.US](https://longbridge.com/en/quote/IXN.US.md) - [IDGT.US](https://longbridge.com/en/quote/IDGT.US.md) - [SRVR.US](https://longbridge.com/en/quote/SRVR.US.md) - [DAT.US](https://longbridge.com/en/quote/DAT.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [CLOU.US](https://longbridge.com/en/quote/CLOU.US.md) - [PSI.US](https://longbridge.com/en/quote/PSI.US.md) - [GGLL.US](https://longbridge.com/en/quote/GGLL.US.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [XDAT.US](https://longbridge.com/en/quote/XDAT.US.md) - [NXTG.US](https://longbridge.com/en/quote/NXTG.US.md) - [GOOW.US](https://longbridge.com/en/quote/GOOW.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [DTCR.US](https://longbridge.com/en/quote/DTCR.US.md) - [GGLS.US](https://longbridge.com/en/quote/GGLS.US.md) ## Related News & Research - [Google’s Run Faces Tight Risk-Reward as Earnings Loom](https://longbridge.com/en/news/284535773.md) - [Alphabet's (GOOGL) $40B Anthropic Gambit: Why Google Is Doubling Down on Its Biggest Al Rival](https://longbridge.com/en/news/284085625.md) - [Google to sell its TPUs to some customers, who also fancy big-G GPUs](https://longbridge.com/en/news/284688671.md) - [Google Cloud surpasses $20B but says growth was capacity-constrained](https://longbridge.com/en/news/284653827.md) - [Google Conference 'Further Proves that Demand Is Not Just Anthropic and OpenAI'](https://longbridge.com/en/news/284009280.md)