Nvidia is investing $2 billion each in photonic product makers Lumentum and Coherent. This strategic move aims to enhance its data center chips with technology crucial for the escalating demand for faster AI processors.
The investments include multibillion-dollar purchase commitments and future access to advanced laser and optical networking products. These partnerships will support research, development, and manufacturing capacity for both Lumentum and Coherent, bolstering U.S. production capabilities.
Light-based and photonics technology is gaining traction among chipmakers seeking to significantly increase chip speeds for higher inference requirements, a key driver for advanced AI applications.