Dan O’Neil: Sure. So I would say that the N-1 factor that we’ve talked about definitely applies to optical. In this market, we’re the disruptor. There is a strong incumbent position that Marvell has built, and they’ve done a very good job with that business. In reality, the optical industry is somewhat of a commodity business in the sense that this is a very difficult market for our end customers to compete in and so we play the role of disrupter and what we have to offer is excellent performance, excellent power, and with the disruptive value proposition. And that’s why we’ve been very much welcomed. I feel great about where we are with this generation of products. It’s been a long time coming that we’ve been able to prove absolute competitive performance in terms of bit air rates, absolutely competitive power, and delivering the kind of disruption that we expected with the N-1 process advantage that we’ve got.
And so that’s why we see a lot of activity. The Dominos I think will start to fall as one by one of our customers achieves production with hyperscalers. And from the standpoint of your question about capacity, really no issues. I expect no issues in ramping to any kind of volumes that could be expected. This is a pretty straightforward manufacturing challenge for our team. My team is used to building millions of units and with our supply partners we’re very much ready from a wafer and from a substrate and from a packaging and test perspective. So I see no issues with our ability to hit the kind of volumes that we could potentially be seeing.
Matt Ramsay: Thanks, Dan. Really appreciate it.
Operator: Thank you. One moment for our next question. And our next question comes from Karl Ackerman from BNP Paribas. Your line is now open.
Karl Ackerman: Yes, thank you, gentlemen. Two questions if I may. First, I guess how are you thinking about the competitive landscape for AECs? I asked it because our checks suggest that some of your peers have made incremental progress in that market, but really at the same time it sort of validates the AEC opportunity as Ethernet captures a growing portion of AI cluster. So your thoughts on that would be super helpful.
Dan O’Neil: Sure. I think that naturally, we’re going to see competition make progress. One of the things that I feel very good about is the way that we’re organized in comparison to the groups of companies that are trying to compete with us. We’re organized in a vertical fashion, I’ve got more than 100 people every day, they come to work, and they work on AEC system solutions. So in a sense, they’re really the customers of our IC development team. And so what that enables us to do is be very, very flexible and very quickly respond to special requests from customers. When we first thought about this market more than five years ago, we were thinking that it would be a standard products type of a market where we would put together a 400 gig on each end, 400 gig connector on each end.
And then it would be kind of a standard IEEE type of standard that we’d be achieving. But the deeper that we go with this, I can tell you that all of the high-volume programs that we’ve talked about all of them have special features that have been implemented. And so the customer base – we’ve talked at length about the work that we did for Microsoft enabling the dual-core architecture and delivering an intelligent AEC solution. The fact is, others try to compete, others never achieve qualification and we’re sole source of that program and that trend continued, so every one of our high-volume relationships, every one of our high-volume discussions, the engineers understand there’s an opportunity for innovation and our team is well organized to achieve those differentiated features that make their rack design that much more valuable.
