Nvidia to Invest USD4B in Two U.S. Photonics Companies
The Santa Clara-based chip giant said it will deploy $2 billion into Lumentum and an equal $2 billion into Coherent — two U.S.-headquartered companies specializing in optics and photonics, the hardware discipline concerned with generating, shaping, and transmitting light. The technology is central to ultra-fast data movement within and between servers, as well as a range of sensing applications increasingly critical to large-scale AI systems.
Lumentum concentrates its efforts on optical and photonic technologies serving the networking backbone of AI, cloud infrastructure, and next-generation communications platforms. Coherent develops photonics components and systems that leverage photons to enable high-performance optical applications across similarly demanding environments.
Nvidia positioned both investments as integral to its broader strategy of embedding advanced silicon photonics into large-scale AI infrastructure — a technology it is casting as a foundational building block for the next generation of sprawling, power-intensive AI computing facilities.
Nvidia CEO Jensen Huang left little ambiguity about the company's ambitions. "Together with Lumentum, NVIDIA is advancing the world's most sophisticated silicon photonics to build the next generation of gigawatt-scale AI factories," Huang said in a statement.
Under the Lumentum agreement, Nvidia has entered a multi-year strategic partnership carrying a multi-billion-dollar purchasing commitment, with provisions securing future production capacity for advanced laser components. Huang added that Nvidia will work alongside Coherent to design and develop next-generation silicon photonics purpose-built for AI infrastructure — an arrangement that similarly locks in a multi-billion-dollar purchase commitment and guarantees future access and capacity rights for cutting-edge laser and optical networking technologies.
The twin investments underscore Nvidia's determination to control not just the computational heart of AI systems, but the optical arteries that keep those systems running at scale.
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