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Nvidia Puts $4 Billion Into Lumentum and Coherent to Lock In AI Photonics Supply

The agreements give Nvidia priority access to optical components, supporting expanded U.S. production.

Overview

  • Nvidia will invest $2 billion each in Lumentum and Coherent under separate multiyear, nonexclusive agreements.
  • The deals include multibillion-dollar purchase commitments plus priority capacity and access rights to advanced lasers and optical networking products.
  • Nvidia says optical interconnects and package integration are critical to scaling energy-efficient AI data centers.
  • Funding will back research and manufacturing in the United States, with Lumentum planning a new fabrication facility and Coherent increasing capacity.
  • Shares of the suppliers rose after the announcement, with Coherent up about 14% and Lumentum roughly 8% by midday.