Updated
Updated · CNBC · Jul 21
Microsoft Certifies 3M Optical Link for Azure, Targeting Up to $50 Million Revenue
Updated
Updated · CNBC · Jul 21

Microsoft Certifies 3M Optical Link for Azure, Targeting Up to $50 Million Revenue

3 articles · Updated · CNBC · Jul 21

Summary

  • Microsoft approved 3M's expanded beam optical connectivity for Azure data centers after several years of testing, giving the industrial group a foothold in AI infrastructure.
  • 3M says the fiber technology cuts hyperscaler installation time by 85% and resists dust and vibration better than traditional point-to-point fiber links, addressing AI-driven demand for faster network deployment.
  • Brown told investors the business should generate $40 million to $50 million this year and could grow to as much as five times that over the next several years.
  • 3M estimates the addressable market at about $1 billion in 2026, rising to roughly $2 billion by 2028, and plans to double production this year and again within 12 to 18 months.

Insights

With Microsoft's backing, will 3M's optical tech become the new standard for the AI data center boom?
Can 3M's small division scale fast enough to solve the massive fiber optic bottleneck throttling the global AI buildout?
As tech giants form an alliance for 3M's tech, who stands to lose in the race to build AI's physical backbone?