NVIDIA invests $2 billion in Coherent to expand U.S. optics

NVIDIA and Coherent announced a multiyear strategic agreement and disclosed that NVIDIA would invest $2 billion in Coherent to expand supply, deepen Research and Development (R&D), and advance U.S.-based manufacturing for advanced optics in support of next-generation Artificial Intelligence (AI) infrastructure.

The companies said the deal was nonexclusive and included a multibillion-dollar purchase commitment along with future access and capacity rights for advanced laser and optical networking products. The announcement identified optical interconnects and advanced package integration as foundational elements for the next phase of AI infrastructure and referenced ultrahigh-bandwidth, energy-efficient connectivity across AI factories.

The release described the technical focus as advanced optics technologies, covering manufacturing capacity and R&D for optical components. It named advanced laser and optical networking products, optical interconnects, package integration, and silicon photonics as areas addressed by the agreement.

Under the terms disclosed, NVIDIA committed a multibillion-dollar purchase commitment and secured future access and capacity rights, while the $2 billion investment was allocated to support Coherent’s R&D, future capacity, and operations as Coherent built out U.S.-based manufacturing capabilities under the multiyear arrangement.

“Computing has fundamentally changed. In the age of AI, software runs on intelligence with tokens generated in real time by AI factories for every interaction and every context,” said Jensen Huang, founder and CEO of NVIDIA. “With Coherent, NVIDIA is pioneering next-generation silicon photonics to enable AI infrastructure at unprecedented scale, speed and energy efficiency.” “This strategic relationship underscores Coherent’s role as a key enabler of next-generation AI data center infrastructure,” said Jim Anderson, CEO of Coherent.

The press release contained forward-looking statements about future events and expectations and said those statements were based on assumptions and contingencies and were subject to risks and uncertainties.