Nvidia to invest $2 billion in Coherent
Nvidia has entered a multiyear strategic agreement with Coherent to develop advanced optics technologies for next-generation AI infrastructure. The agreement includes a USD 2 billion investment by Nvidia in Coherent, alongside a multibillion-dollar purchase commitment for optical networking and laser products.
Under the non-exclusive agreement, Nvidia will secure future access and capacity rights for advanced optical components. The USD 2 billion investment is intended to support research and development, manufacturing capacity and operations, as Coherent expands its US-based production footprint.
The companies stated that optical interconnects and advanced package integration are becoming increasingly critical as AI infrastructure scales. High-bandwidth, energy-efficient connectivity is seen as a key requirement for next-generation data centre architectures supporting AI workloads.
Jensen Huang, founder and CEO of Nvidia, said in a press release that the collaboration will focus on advancing next-generation silicon photonics to enable AI infrastructure at larger scale and improved energy efficiency. Jim Anderson, CEO of Coherent, described the agreement as an expansion of a more than 20-year relationship between the two companies.
The partnership reflects growing investment in optical technologies as hyperscale operators and semiconductor companies expand AI data centre capacity globally. Nvidia stated that the agreement will enable Coherent to scale both R&D and manufacturing to support the buildout of AI infrastructure.
