Nvidia said it will invest $4 billion in photonics companies Lumentum and Coherent, deepening its push to scale next-generation AI data centers just days after reports emerged that the chipmaker is preparing a new processor aimed at accelerating artificial-intelligence inference workloads.
The Santa Clara, Calif.-based company will commit $2 billion to each firm under multiyear strategic agreements designed to expand optical interconnect technology, advanced packaging integration and U.S.-based manufacturing capacity. The move underscores Nvidia's effort to secure high-bandwidth, energy-efficient connectivity as demand for AI computing infrastructure surges.
"AI has reinvented computing and is driving the largest computing infrastructure buildout in history," Nvidia CEO Jensen Huang said, adding that with Lumentum and Coherant, Nvidia is making "the most sophisticated silicon photonics to build gigawatt-scale AI factories."
Lumentum, headquartered in California, develops photonic technologies used in cloud computing, AI networks and communications systems. Its CEO, Michael Hurlston, described the partnership as a long-term commitment. "This multiyear strategic agreement reflects our shared commitment to advancing the optics technologies that will power the next generation of AI infrastructure," he said.
Hurlston added that the company plans to expand manufacturing capacity: "In support of this collaboration, we are also investing in a new fabrication facility to increase capacity and accelerate innovation. We're excited to work together to expand what's possible for the AI optical architectures of tomorrow."
Coherent, which specializes in laser-based and photon-enabled components for high-performance optical applications, will also broaden its collaboration with Nvidia. CEO Jim Anderson said, "This strategic relationship underscores Coherent's role as a key enabler of next-generation AI data centre infrastructure." He added, "We are proud to expand our 20-year relationship with NVIDIA by increasing their access to include multiple product families to help them build the AI data centres of the future."
The agreements are nonexclusive and include multibillion-dollar purchase commitments from Nvidia, as well as future capacity access rights for advanced laser components. The partnerships aim to enhance optical interconnects that move data between AI processors at ultra-high speeds while reducing energy consumption-a growing bottleneck in hyperscale AI deployments.
The investment announcement coincides with reports from The Wall Street Journal that Nvidia is preparing to unveil a new AI processor at its upcoming GTC developer conference. The platform is expected to focus on inference computing, a segment of the AI market facing intensifying competition.
According to the Journal, the system will incorporate a chip designed by startup Groq, whose architecture differs from Nvidia's GPUs and is optimized for inference efficiency. OpenAI is expected to be among the largest initial customers for the new processor, people familiar with the matter told the publication.
The dual developments-optics expansion and inference chip design-highlight Nvidia's strategy to control both compute silicon and the networking backbone required to scale AI workloads. Key financial commitments include:
- $2 billion investment in Lumentum.
- $2 billion investment in Coherent.
- Additional capital for a new U.S.-based fabrication facility.
