New oxide-confined 980-nm vertical-cavity surface-emitting lasers (VCSELs) with record temperature-stable small-signal bandwidths of 25.6 to 23.0 GHz at 25 to 85 °C are designed, fabricated, and characterized. Technology-based device parameters essential for system-level models of VCSEL-based short-reach and ultrashort-reach optical interconnects are extracted. These parameters include key intrinsic figures-of-merit, including the −3-dB modulation bandwidth, the bandwidth-to-electrical power ratio, and device input impedance, all as functions of temperature, oxide-aperture diameter, and desired range of bias current or current density. Further, the M-factor, relating the intrinsic VCSEL bandwidth to the error-free bit rate for a given external systems configuration and application, is introduced. Our present 980-nm VCSEL technology is capable of 40 Gb/s operation at 85 °C at a simultaneously low current density of 10 kA/cm2 with an energy of only 100 fJ per bit.