That slid by me as an afterthought the first time I read it, thanks for resurfacing that line. It got me thinking.

So the NVIDIA guy in that speaker panel that described what needs to happen in photonics to bring the semiconductor industry into an "all-in" commitment to photonic circuits was seemingly describing POET's approach, but there was still an itch that needed scratching under his words.

We know that large companies do not like single supplier relationships, though they tolerate them where necessary. They also cannot fully commit to a small company playing a large role in a new approach. Bluntly, NVIDIA cannot jump into a big rollout with POET at the base of it quite yet. They need to see some big partners succeeding with POET products. Not just announcements of what the task is, but real working circuits in volume, working as expected with the ability to deliver at scale. 

I believe POET is making all the right moves in this direction with Foxconn, Mitusbishi, Luxshare. Later, CAI will be in this sentence, but they are currently outsiders that are carving a niche of their own, and that looks very hopeful.

POET's weaknesses need to be backfilled with close working relationships that may elevate to the level of "cap table" relationships. Think Mitsubishi opening an SPX type of partnership after taking a relevant ownership share in POET. The investors we've had in the last few rounds are just finance people who get in and get out and hold warrants. It's OK, POET needed the cash, but a better "cap table" partner would be looking long term, and would have a better ability to understand the value of POET's platform married to their lasers or other key pieces of tech. 

Before POET can be the de facto standard for optical circuits, it needs to bring the heft of plenty of access to cash, great commitments from well respected companies that signal a long term runway without any small company shocks. Shocks like a lack of capital, a hostile takeover event, a talent raid, a bad rollout of a key product, and other small company fragilities that cannot be tolerated by the likes of NVIDIA. POET needs to present a robust set of company attributes that give comfort to the major players. This may require an investment from a big partner.

They don't come in and buy at a peak. Not sure how it's accomplished within legal means, but I have no doubt they find ways to keep the price stable and the welcome mat clean.