Catenaa, Monday, March 02, 2026- Nvidia will invest $4 billion in photonic product makers Lumentum and Coherent to bolster its data center chips for faster AI processors.
Shares of Lumentum were up by 10% and Coherent by 7% after the announcement on Monday.
At its most recent earnings conference, Nvidia executives said the company would use its large cash reserve to invest in the AI ecosystem and help boost the output of models.
Light-based and photonics technology has emerged as a popular choice for chipmakers looking to increase the speed of their chips in an effort to cater to higher inference requirements.
The tie-ups include multibillion-dollar purchase commitments from Nvidia and future capacity and access rights to advanced laser and optical networking products from both Lumentum and Coherent.
The investments will help the companies support research and development, capacity, and operations as they build out U.S. manufacturing capabilities.
The nonexclusive agreement includes an Nvidia multibillion-dollar purchase commitment and future capacity access rights for advanced laser components.
In addition, NVIDIA is investing $2 billion in Lumentum to support R&D, future capacity, and operations as the company builds out its U.S.-based manufacturing capabilities in a new fab.
Optical interconnect technology and package integration are critical for the continued scaling of AI factories, improving the energy efficiency and resiliency of large-scale AI networks.
This expanded collaboration will draw on the strengths of NVIDIA’s leadership in AI, accelerated computing, and networking, and Lumentum’s leadership in optics and advanced manufacturing.
The investment enables Lumentum to scale its manufacturing capacity and R&D to meet the needs of future AI data centers.
