Nvidia Invests $2 Billion Each in Lumentum and Coherent to Advance Next-Gen Data Center Optical Interconnect Technology

According to 1M AI News, on March 3, NVIDIA announced separate multi-year strategic partnerships with photonics device manufacturers Lumentum and Coherent, each investing $2 billion for a total of $4 billion. Both investments are intended to support each other's research and development, manufacturing capacity expansion, and operations in the United States, with Lumentum planning to build a new wafer fabrication plant. Both agreements are non-exclusive partnerships, including multi-billion-dollar procurement commitments and future rights to advanced laser and optical networking products.

According to CNBC, the stock prices of both photonics companies surged significantly after the announcement.