The focus of this paper was designing and demonstrating bus structure FBG sensor networks using intensity wavelength division multiplexing (IWDM) techniques and a gated recurrent unit (GRU) algorithm to increase the capability of multiplexing and the ability to detect Bragg wavelengths with greater accuracy. Several Fiber Bragg grating (FBG) sensors are coupled with power ratios of 90:10 and 80:10, respectively in the suggested experimental setup. We used the latest IWDM multiplexing technique for the proposed scheme, as the IWDM system increases the number of sensors and allows us to alleviate the limited operational region drawback of conventional wavelength division multiplexing (WDM). However, IWDM has a crosstalk problem that causes high-sensor signal measurement errors. Thus, we proposed the GRU model to overcome this crosstalk or overlapping problem by converting the spectral detection problem into a regression problem and considered the sequence of spectral features as input. By feeding this sequential spectrum dataset into the GRU model, we trained the GRU system until we achieved optimal efficiency. Consequently, the well-trained GRU model quickly and accurately identifies the Bragg wavelength of each FBG from the overlapping spectra. The Bragg wavelength detection performance of our proposed GRU model is tested or validated using different numbers of FBG sensors, such as 3-FBG, 5-FBG, 7-FBG, and 10-FBG, separately. As a result, the experiment result proves that the well-trained GRU model accurately identifies each FBG Bragg wavelength, and even the number of FBG sensors increase, as well as the spectra of FBGs, which are partially or fully overlapped. Therefore, to boost the detection efficiency, reliability, and to increase the multiplexing capabilities of FBG sensor networks, the proposed sensor system is better than the other previously proposed methods.