We examine transfer of particle entanglement and spin squeezing between atomic and photonic subsystems in optical cavities coupled by two-photon exchange. Each cavity contains a single atom, interacting with cavity photons with a two-photon cascade transition. Particle entanglement is characterized by evaluating optimal spin squeezing inequalities for the cases of initially separable and entangled two-photon states. It is found that particle entanglement is first generated among the photons in separate cavities and then transferred to the atoms. The underlying mechanism is recognized as an intercavity two-axis twisting spin squeezing interaction, induced by two-photon exchange, and its optimal combination with the intracavity atom–photon coupling. Relative effect of nonlocal two-photon exchange and local atom–photon interactions of cavity photons on the spin squeezing and entanglement transfer is pointed out.
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