Nvidia to invest $4 billion in two photonics companies
Nvidia has agreed to invest $4 billion in two companies that develop data center optics that are essential for artificial intelligence systems.
The company will invest $2 billion each in Lumentum Holdings Inc and Coherent Corp in multi-year deals.
Both deals include purchase agreements and access rights for advanced laser components. The money will go to support research and development.
Nvidia is using its enormous profits to build up a robust Ecosystem to support the development of advanced artificial intelligence systems.
It has invested money directly into data center companies like Coreweave Inc. and AI model developers like OpenAI, helping to boost demand for its chips.
Lumentum makes optical and photonic technologies like high-performance lasers that are used to power infrastructure needed for AI and cloud computing. Coherent also works in advanced optical technologies essential for building data centers and enabling cutting-edge communications. "Together with Lumentum, Nvidia is advancing the world's most sophisticated Silicon Photonics to build the next generation of Gigawatt-scale AI factories," said Jensen Huang, founder and Ceo of Nvidia.
He added that Nvidia will work with Coherent on developing next-generation silicon photonics for AI infrastructure. Shares of Lumentum and Coherent were up over 7% in Premarket trading.