This is an interactive optic fiber cloth. It is made of side-emitting diffusive optic fibers so computer controlled light patterns can be displayed on it, and by attaching light receivers as well as light emitters, optical signals can be input using infrared light.
"Originally, we came across the light-emitting fabric, where light is emitted from the optical fiber surface. Conversely, we thought it could be used to input data by receiving light through the surface. So, we've created this kind of interface."