NVIDIA is investing $4 billion in Lumentum and Coherent to expand U.S.-based optics manufacturing and research and development for artificial intelligence (AI) data centers, the companies said in an announcement.
The deals aim to accelerate production of optical interconnects and advanced package integration, technologies the companies describe as essential to next-generation AI infrastructure that requires ultrahigh-bandwidth, energy-efficient connectivity across large-scale deployments.
The agreements includes a multibillion-dollar purchase commitment from NVIDIA and grants future access and capacity rights for advanced laser and optical networking products. NVIDIA will invest $2 billion in both Lumentum and Coherent to support research and development, future capacity and operations as Coherent builds out its U.S.-based manufacturing capabilities, the announcement said.
“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.
Jim Anderson, CEO of Coherent, added: “This strategic relationship underscores Coherent’s role as a key enabler of next-generation AI data center infrastructure.”
The companies said the expanded partnership pairs NVIDIA’s work in AI, accelerated computing and networking with Coherent’s optical innovation and manufacturing experience to scale R&D and production capacity for global AI data center buildouts.
The recap
- NVIDIA and Coherent agree a multiyear, nonexclusive optics partnership
- NVIDIA commits a multibillion-dollar purchase and invests $2 billion
- Coherent will expand U.S.-based manufacturing capacity to support AI