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The World Gold Council says rising demand for AI chips did not lift overall technology-sector gold use in 2025, which stood at 323 tonnes. It sees co-packaged optics as a possible longer-term source of demand, but says broad adoption has not yet been established.
The World Gold Council (WGC) says the rapid expansion of artificial intelligence has not yet lifted overall gold demand from the technology sector: use held at 323 tonnes in 2025, as manufacturers’ efforts to reduce or eliminate gold in some components offset growth linked to AI applications. The finding tempers expectations that expanding AI infrastructure will provide a near-term boost to the metal’s industrial demand.
In its report, AI Boom and Gold, released Thursday, the WGC described electronics demand as a contest between growing applications and efforts to use less gold. The council said those forces appeared evenly matched. Demand for AI chips has risen sharply, but the report does not say that this growth has translated into a comparable increase in gold consumption.
Technology-sector gold use was 323 tonnes in 2025, compared with 326 tonnes in 2024. The earlier figure represented a 7% increase from 2023, according to the WGC’s February 2025 account; AI-related gold use then made a modest contribution. The figures describe total technology demand, not gold use by AI systems alone.
Manufacturers are pursuing miniaturization and reducing or removing gold from some components, the council said. Gold’s durability and electrical conductivity continue to make it useful in certain electronic parts, but the report says these efficiency measures have counterbalanced growth so far. It does not provide a separate tonnage estimate for gold used in AI chips or related data-center equipment.
AI Growth Meets Component Savings
The report matters because it challenges a simple assumption that more AI hardware automatically means substantially more gold demand. AI systems require chips and increasingly complex infrastructure, but the metal’s contribution depends on how much gold each component uses and whether manufacturers can substitute other materials or redesign parts to use less.
For readers tracking industrial demand, the WGC’s figures point to a limited near-term effect from AI on total technology-sector consumption. Technology accounts for about 80% of gold use in industrial applications, with other industrial uses and dentistry making up the remainder. That puts changes in electronics manufacturing in perspective, while the 323-tonne figure still covers technology uses broadly rather than AI alone.
The WGC also identifies a possible longer-term change: co-packaged optics, or CPO, which combines optical transmitter and receiver components with circuits such as computing chips. The council says gold is used in some optical and photonic elements, including lasers, and in high-frequency chip electrodes. If CPO becomes common in large-scale AI infrastructure, its use of gold could become meaningful, though that remains a possibility rather than a measured demand increase.
Gold was quoted at $4,270.30 per ounce on Friday morning, nearly 14% higher than a year earlier, according to the report. That price context helps explain manufacturers’ incentive to economize on gold; it does not establish that AI demand caused the price rise. Gold prices can fluctuate, and the report offers no price forecast.
From 2024 Growth to a Flat 2025
The WGC reported in February 2025 that technology demand for gold increased 7% in 2024 to 326 tonnes, with AI-related applications adding modestly to use. The latest report gives a 2025 total of 323 tonnes, describing technology demand as essentially flat amid rising AI-chip demand and continued material-saving efforts.
The shift in attention is from current electronics use to the possible effects of new hardware designs. CPO integrates optical components and electronic circuits to move data faster and improve bandwidth, according to the report. The WGC says adoption remains at an early stage. It also points to investment in CPO development by industry participants, including U.S. chipmaker Nvidia, but does not quantify resulting gold demand.
““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 be adopted across hyperscale AI infrastructure, how much gold each system would require, or when any additional demand might appear. It describes broader adoption as a condition under which CPO could create meaningful new use of gold, not as a confirmed outcome.
The WGC also does not break out the 2025 total by AI-related applications, component type, or manufacturer. As a result, the available figures show that overall technology demand remained near its recent level, but they do not quantify the separate contributions of AI growth and gold-saving measures. The balance could change as designs, prices, and production volumes evolve.
Signals to Watch in CPO Deployment
The next useful indicators will be evidence of CPO adoption in large AI installations and data showing whether those deployments increase gold use in optical components and chips. Further WGC reporting on technology demand may clarify whether the balance between AI applications and material reduction changes after 2025.
Until those figures or adoption data are available, the council’s report supports a measured conclusion: AI chip demand is expanding, while total technology-sector gold use has not risen with it. The longer-term demand case depends in part on whether CPO and other advanced components become widely used.
Source: rss
Key Questions
Did AI increase gold demand in 2025?
Not at the overall technology-sector level, according to the WGC. Gold use in technology was 323 tonnes in 2025, while efforts to reduce gold in components offset growth in AI applications.
How much gold did the technology sector use?
The WGC puts technology-sector gold use at 323 tonnes in 2025, compared with 326 tonnes in 2024. The total includes technology uses beyond AI hardware.
What is co-packaged optics?
CPO integrates optical transmitters and receivers with circuits such as computing chips to move data faster and improve bandwidth. The WGC says gold is used in some optical and photonic components and in high-frequency chip electrodes.
Could CPO create more gold demand?
The WGC says gold demand could become meaningful if CPO is widely adopted in hyperscale AI infrastructure. Adoption remains at an early stage, and the report does not quantify potential demand.
Source: rss
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