NVIDIA to invest $4b in Lumentum and Coherent for AI optics

NVIDIA announced multiyear strategic agreements with Lumentum and Coherent. The company will invest 2 billion dollars in each firm under the nonexclusive pacts. The agreements include multibillion dollar purchase commitments and future capacity access rights for advanced laser components from Lumentum and for advanced laser and optical networking products from Coherent. NVIDIA said the deals will support research and development, future capacity and operations as both companies build out United States manufacturing capabilities. Optical interconnect technology and package integration are critical for the continued scaling of AI factories, the company said, as they improve the energy efficiency and resiliency of large scale AI networks. NVIDIA Chief Executive Jensen Huang said artificial intelligence has reinvented computing and is driving the largest computing infrastructure buildout in history. He said the collaboration with Lumentum advances silicon photonics to build the next generation of gigawatt scale AI factories. Huang added that work with Coherent pioneers next generation silicon photonics to enable AI infrastructure at large scale, speed and energy efficiency. Lumentum Chief Executive Michael Hurlston said the agreement reflects a shared commitment to advancing the optics technologies that will power the next generation of AI infrastructure. He said the company is investing in a new fabrication facility to increase capacity and accelerate innovation. Coherent Chief Executive Jim Anderson said the strategic relationship underscores the firm's role as a key enabler of next generation AI data center infrastructure. He said it expands a 20 year relationship with NVIDIA by increasing access to multiple product families.