Nvidia will invest $4 billion in two US photonics companies as it continues to support the buildout of AI data center infrastructure.
The chip vendor said it would invest $2 billion in Lumentum and $2 billion in Coherent, both of which develop optical technology that uses light instead of electrical signals to connect AI chips.
The technology is used for high-bandwidth applications such as sensing and data transfer, as well as to power next-generation AI infrastructure.
“Optical interconnect technology and package integration are critical to the continued scaling of AI factories,” Nvidia said in a statement. statement On the deal. “[They]massively improve the energy efficiency and resiliency of AI networks.”
As part of the multi-year agreements, Nvidia will support the companies’ technology development and help expand their US-based manufacturing capacity.
Both deals also include purchase commitments worth billions of dollars for the companies’ laser and optical components.
Lumentum CEO Michael Hurlston said in the press release that the company will invest in a new manufacturing facility to “increase capacity and accelerate innovation,” while Coherent said it will use the capital to scale manufacturing and support the global build of next-generation AI data centers.
“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,” Jensen Huang, founder and CEO of Nvidia, said in a statement. Press release.
“This strategic relationship underscores Coherent’s role as a leading enabler of next-generation AI data center infrastructure,” Coherent CEO Jim Anderson said in the press release. “We are proud to expand our 20-year relationship with Nvidia to help build the AI data center of the future.”
The announcement comes amid growing competition to secure AI infrastructure capacity. The demand for advanced chips and supporting technologies is continuously increasing as AI workloads increase in various industries.
Just last week, Meta, one of Nvidia’s top customers, signed a 100 billion dollar deal With AMD in which it agreed to buy up to 6 gigawatts of AI computing power from the chip maker.
