NVIDIA Invests $2 Billion in Coherent Corp

By Chris Stiles • Monday, March 02 10:38 • Permanent Link

NVIDIA and Coherent Corp have announced a strategic partnership to advance optics technologies for next-generation AI infrastructure. As part of the agreement, NVIDIA will invest $2 billion in Coherent to support research and development, future capacity, and operations. This investment is aimed at expanding Coherent's U.S.-based manufacturing capabilities.

The non-exclusive agreement also includes a multi-billion-dollar purchase commitment from NVIDIA and future access and capacity rights for advanced laser and optical networking products from Coherent.

According to Jensen Huang, founder and CEO of NVIDIA, the partnership is focused on pioneering next-generation silicon photonics to enable AI infrastructure at an unprecedented scale, speed, and energy efficiency. This move is in response to the fundamental changes in computing, particularly with the rise of AI where software operates on intelligence generated in real time by AI factories for every interaction and context.

Jim Anderson, CEO of Coherent, emphasized the company's role as a key enabler of next-generation AI data center infrastructure and expressed pride in expanding their long-standing relationship with NVIDIA.

The partnership aims to leverage NVIDIA's leadership in AI, accelerated computing, and networking, along with Coherent's expertise in optical innovation and advanced manufacturing, to scale Coherent's R&D and manufacturing capacity in support of the global buildout of next-generation AI data centers. Following these announcements, the company's shares moved -2.51%, and are now trading at a price of $191.04. If you want to know more, read the company's complete 8-K report here.

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