The company behind Scotch tape is evolving into an AI play
3M is pivoting its industrial expertise toward the AI infrastructure market by developing fiber-optic connectivity technology for data centers. The company claims its expanded beam optical connectivity significantly reduces installation time for hyperscalers like Microsoft.
Why it matters
This illustrates how traditional manufacturing conglomerates are adapting their product lines to capture growth in the high-demand AI and cloud computing sectors.
The industrial conglomerate best known for Post-it notes and Scotch tape has found an unlikely role in the artificial intelligence buildout.
3M has developed a technology called expanded beam optical connectivity that helps hyperscalers deploy fiber-optic networks faster as more demanding AI workloads drive the shift away from traditional copper networking.
"It saves 85% of the installation time for hyperscalers," Brown said on CNBC's " Mad Money " Tuesday. "Time is money for hyperscalers."
Unlike traditional point-to-point fiber connections, 3M's technology spreads light across a wider surface before reconnecting it, making the connections more resistant to dust and vibrations that can disrupt data transmission. Brown said the company has built a significant competitive advantage, with "100 patents in the space and another 50 pending."
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