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We show that a collection of two-level atoms in an optical cavity beyond therotating wave approximation and in the dispersive and strong-coupling regimeconstitutes a nonlinear medium and is capable of generating squeezed state oflight. It is found that squeezing produced in the strong-coupling regime issignificantly higher compared to that produced in the dispersive limit. On theother hand, we also show that it could be possible to observe the Dickesuperradiant quantum phase transition in the dispersive regime where the vectorpotential term is negligible. Such a system can be an essential component of alarger quantum-communication system.

Influence of Virtual Photon Process on the Generation of Squeezed Light from Atoms in an Optical Cavity