Nvidia is investing $2bn each in Lumentum Holdings and Coherent as part of separate multi-year agreements aimed at boosting research and development (R&D) into advanced optical technologies for future AI infrastructure.
The funding will support both companies’ efforts to expand their manufacturing capacity in the United States and accelerate innovation in key areas for AI data centers.
Lumentum will use the investment from Nvidia to increase its manufacturing capabilities and enhance its R&D activities. The company, based in San Jose, California, develops optical and photonics technologies integrated into AI systems, cloud computing, telecommunications, industrial manufacturing, and sensing applications.
With global research, manufacturing, and sales operations, Lumentum plans to build new manufacturing facilities in the United States to meet the growing demand for high-performance lasers, modules, and optical subsystems.
Nvidia founder and CEO Jensen Huang said: “AI has reinvented computing and is creating the largest computing infrastructure in history.
“Together with Lumentum, Nvidia is developing the world’s most sophisticated silicon photonics to build the next generation of gigawatt-scale AI factories.”
Coherent will allocate Nvidia’s investment to scale its research and manufacturing operations as it expands its US facilities.
Founded in 1971 and operating in more than 20 countries, Coherent specializes in photonics technologies used by data centers, telecommunications networks and industrial markets.
The company offers a portfolio of laser products that are said to be essential for effective data center connectivity and advanced communications. Synergy intends to leverage the new funds to address the industry’s need for advanced optical networking products.
Coherent CEO Jim Anderson said: “This strategic relationship underscores Coherent’s role as a key enabler in next-generation AI data center infrastructure.
“We are proud to expand our 20-year relationship with Nvidia by expanding their reach to include multiple product families to help them build the AI data centers of the future.”
Both agreements with Nvidia are non-exclusive and include multi-billion dollar purchase commitments as well as rights to future access to capacity for advanced laser components and optical products. These configurations are designed to provide Nvidia with secure delivery of critical components needed to scale next-generation AI fabrics while supporting energy-efficient connectivity in large-scale networks.
