TL;DR
Get home office essentials delivered free — and shop member deals
- Fast, free delivery on millions of items
- Access to Prime Big Deal Days deals on October 6–7
- Prime Video, Amazon Music and more included
The World Gold Council says technology-sector gold demand was essentially flat at 323 tonnes in 2025 despite rapid growth in AI chips. Manufacturers’ efforts to reduce gold use offset modest demand from AI, while wider adoption of co-packaged optics could create a longer-term source of growth.
The WGC described electronics demand as a “tug-of-war” between growing use in AI-related applications and efforts to use less gold. “At the moment, the two sides appear evenly matched,” the council said in its report, AI Boom and Gold, released Thursday. The report’s assessment tempers expectations that the AI infrastructure buildout will deliver a substantial short-term increase in gold demand.
Technology demand had risen 7% to 326 tonnes in 2024, with AI-related gold use making a modest contribution, according to a WGC account from February 2025. The 2025 figure of 323 tonnes was nearly unchanged from that level. The council points to miniaturization and manufacturers’ efforts to reduce or remove gold from some components as forces countering the expansion of AI chip demand.
The report identifies co-packaged optics (CPO) as a possible future source of demand. The packaging method integrates optical transmitters and receivers with circuits such as computing chips, helping AI systems move data faster and increase bandwidth. Gold is used in some optical and photonic components, including lasers, and in high-frequency chip electrodes, because of its durability and electrical conductivity.
AI Hardware Meets Gold Efficiency
The flat total highlights a gap between AI industry growth and the amount of gold used across technology manufacturing. Rising demand for computing equipment does not automatically translate into rising metal demand when manufacturers can reduce gold content, redesign components or use alternatives. The WGC’s assessment suggests that the near-term effect of AI on gold demand remains limited.
The longer-term outlook depends partly on which hardware designs become common. If CPO is adopted widely in hyperscale AI infrastructure, the gold used in its optical and electrical components could become a more meaningful source of technology demand, the council says. That possibility remains conditional: the technology is at an early stage of adoption, and the report does not quantify how much gold widespread use would require.
Technology is also one part of industrial gold use. Electronics manufacturing accounts for about 80% of gold used in industrial applications, while other industrial uses and dentistry make up the remainder. A change in electronics demand could therefore affect a major portion of industrial use, even though the overall gold market includes other sources of demand.
From 2024 Growth to a Flat 2025
The reported figures show a shift from a gain in 2024 to broadly stable technology demand in 2025. The WGC said technology use rose 7% to 326 tonnes in 2024; AI applications contributed modestly at that time. In 2025, despite surging demand for AI chips, technology-sector gold use was 323 tonnes, with lower gold use in components offsetting growth elsewhere.
CPO combines optical components and computing circuits in semiconductor packaging. The approach is intended to support faster data movement and greater bandwidth—needs associated with large AI systems. According to the WGC, gold’s properties make it useful in some CPO parts, including lasers and high-frequency electrodes. The council says Nvidia and other major AI industry players are investing in CPO development, but does not say that investment has yet led to broad deployment.
Gold was reported at $4,270.30 per ounce Friday morning, almost 14% above its level a year earlier. That is a market-price observation, separate from the WGC’s figures on physical technology use; the report does not attribute the price movement to AI-related gold demand. Gold prices can fluctuate, and market prices carry risk of loss for investors.
““We view the current demand situation in the electronics sector very much as a tug-of-war. At the moment, the two sides appear evenly matched.””
— World Gold Council, in its “AI Boom and Gold” report
CPO Adoption and Gold Use
The report does not establish how quickly CPO will move from development toward widespread use, or how much gold broader deployment would require. The WGC describes adoption as being at an early stage and says demand could become meaningful if the technology is widely used across hyperscale AI infrastructure.
It is also unclear how manufacturers’ efforts to reduce or eliminate gold in components will develop alongside new applications. The council’s figures show technology demand was essentially flat in 2025, but do not break out a precise total for AI-related gold use or quantify the separate contribution from CPO.
Signals to Watch in AI Packaging
The next signs to watch are whether CPO moves into broader use in hyperscale AI systems and whether that deployment produces measurable gold demand. The WGC points to investment by Nvidia and other AI industry heavyweights in CPO development, but gives no deployment schedule or forecast for resulting metal use.
Future WGC technology-demand figures will show whether new AI hardware applications begin to outweigh manufacturers’ gold-reduction efforts. Until those figures or more specific adoption data are available, the council’s current assessment is that the two forces remain evenly matched.
Key Questions
Did AI growth increase gold demand in 2025?
Not in the overall technology-sector total, according to the World Gold Council. Technology use remained essentially flat at 323 tonnes in 2025, as efforts to reduce gold in components offset growth in AI applications.
What is co-packaged optics?
Co-packaged optics (CPO) integrates optical transmitters and receivers with circuits such as computing chips. It is designed to help AI systems move data faster and support greater bandwidth.
Why could CPO use gold?
The WGC says gold is used in some CPO optical and photonic components, including lasers, and in high-frequency chip electrodes because of its durability and electrical conductivity.
Could CPO significantly raise gold demand?
The WGC says gold demand could become meaningful if CPO is widely adopted across hyperscale AI infrastructure. Adoption is still at an early stage, and the report does not quantify possible demand.
Source: rss
Fall Picks
fall essentials
As an affiliate, we earn on qualifying purchases.
