Nvidia invests $4 billion in photonics firms to power next-generation AI infrastructure

Nvidia to invest $4 billion in two photonics companies

Nvidia has announced it is investing a combined $4 billion in two companies developing photonics technologies. The U.S. chip giant announced on Monday it's investing $2 billion in Lumentum and the same amount in Coherent. Lumentum is a U.S.-based company that is developing optical and photonic technologies to power the networks and infrastructure behind AI, cloud computing and next-generation communications. Coherent, also based in the U.S., develops photonics technology, which refers to harnessing light (photons) to create components and systems that enable high-performance optical applications. "Together with Lumentum, NVIDIA is advancing the world's most sophisticated silicon photonics to build the next generation of gigawatt-scale AI factories," said Jensen Huang, founder and CEO of Nvidia, said in a statement. He added that Nvidia will work with Coherent on developing next-generation silicon photonics for AI infrastructure.

Nvidia to invest US$2 billion each in Lumentum, Coherent to bolster AI processors

Nvidia will invest US$2 billion each in photonic product makers Lumentum and Coherent, as it looks to bolster its data center chips with technology that can better cater to the growing need for faster AI processors. Shares of Lumentum and Coherent were up over seven per cent ⁠in premarket trading after the announcement on Monday. At its most recent earnings conference, Nvidia executives said the company would use ⁠its large cash reserve to invest in the AI ecosystem and help boost the output of ⁠models. Light-based and photonics technology has emerged as a popular choice for chipmakers looking to increase the speed of their chips in an effort to cater to ⁠higher ⁠inference requirements. The tie-ups include multibillion-dollar purchase commitments from Nvidia and future capacity ⁠and access rights to advanced laser and optical networking products from both Lumentum and Coherent. The investments will help the ⁠companies support research and development, capacity and operations as they build out U.S. manufacturing capabilities.

Coherent stock surges after Nvidia invests $2 billion By Investing.com

Investing.com -- Coherent Corp. (NYSE:COHR) shares rose 10% on Monday after Nvidia (NASDAQ:NVDA) announced a $2 billion investment in the company as part of a multiyear strategic agreement to advance optical technologies for AI data centers. The nonexclusive agreement includes a multibillion-dollar purchase commitment from Nvidia and future access and capacity rights for advanced laser and optical networking products. The investment will support Coherent's research and development, future capacity and operations as the company expands its U.S.-based manufacturing capabilities. Optical interconnects and advanced package integration are foundational to the next phase of AI infrastructure, enabling ultrahigh-bandwidth, energy-efficient connectivity across AI factories. The partnership combines Nvidia's leadership in AI, accelerated computing and networking with Coherent's expertise in optical innovation and advanced manufacturing. "Computing has fundamentally changed. In the age of AI, software runs on intelligence with tokens generated in real time by AI factories for every interaction and every context," said Jensen Huang, founder and CEO of Nvidia. "With Coherent, NVIDIA is pioneering next-generation silicon photonics to enable AI infrastructure at unprecedented scale, speed and energy efficiency." Jim Anderson, CEO of Coherent, commented that the strategic relationship underscores Coherent's role as a key enabler of next-generation AI data center infrastructure. He noted the expansion of the companies' 20-year relationship, which will increase Nvidia's access to multiple product families to help build AI data centers of the future. The agreement positions Coherent to scale its manufacturing capacity to support the global buildout of next-generation AI data centers. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Nvidia to Invest $2 Billion in Both Lumentum and Coherent

Nvidia is investing $2 billion in both Lumentum and Coherent as part of agreements to help accelerate advanced optics technologies for AI infrastructure. The two separate agreements each include a multibillion-dollar purchase commitment from Nvidia and future capacity access rights for advanced laser products. Meanwhile, the investments in each company will support research and development, and future capacity and operations as the two companies build out their U.S. manufacturing capabilities. The companies said that optical-connection technologies are critical to the next phase of AI infrastructure, allowing for ultrahigh-bandwidth, energy-efficient connectivity of AI networks. Lumentum shares rose 7.6% to $754 in premarket trading. Coherent gained 7.3% to $277.73. Write to Nicholas G. Miller at [email protected]