NVIDIA Bets $4B on Two Optical Chip Leaders

On March 2, NVIDIA unveiled major strategic partnerships with two U.S.-based optical and photonics technology companies, investing a total of $4 billion to strengthen its capabilities in optical interconnects and advanced packaging critical for AI data centers.

NVIDIA has reached a multi-year agreement with Lumentum Holdings Inc., aiming to accelerate innovation in advanced optical technologies, including next-generation AI system design and infrastructure. The non-exclusive deal includes multi-billion-dollar procurement commitments and access to future advanced laser components. NVIDIA will invest $2 billion in Lumentum to support R&D, future capacity expansion, and operations, including a new U.S.-based wafer fab, enhancing its manufacturing scale.

Optical interconnects and packaging integration are essential for expanding AI operations, improving both efficiency and resilience of large-scale AI networks. This collaboration leverages NVIDIA’s leadership in AI, accelerated computing, and networking alongside Lumentum's expertise in optics and advanced manufacturing, positioning both to meet growing AI data center demands.

At the same time, NVIDIA has signed a similar multi-year strategic agreement with Coherent Inc., focused on advancing next-generation optical technologies, manufacturing, and R&D for AI infrastructure. This agreement also features multi-billion-dollar procurement commitments and access to advanced laser and optical networking products. NVIDIA's $2 billion investment will support Coherent's R&D, manufacturing, and operations, including building new U.S. production capabilities.

These partnerships combine NVIDIA's strengths in AI and accelerated computing with Lumentum and Coherent's optical technology expertise, expanding their R&D and production capacity to power the next generation of global AI data centers.