NVIDIA’s $2B Strategic Investment in Coherent for Advanced AI Infrastructure
NVIDIA has announced a strategic, multiyear partnership with photonics company Coherent Corp on March 2, 2026. This partnership involves a $2 billion investment to advance optical technologies for next-generation AI data centers. This deal forms part of NVIDIA’s broader $4 billion investment strategy, with an additional $2 billion committed to Lumentum Holdings.
The nonexclusive agreement includes a multibillion-dollar purchase commitment from NVIDIA. This secures future capacity rights for advanced laser and optical networking products. The investment will support Coherent’s research and development efforts. It will also expand U.S.-based manufacturing capabilities to meet the growing demand for AI infrastructure components.
“Computing has fundamentally changed,” said NVIDIA CEO Jensen Huang. “With Coherent, NVIDIA is pioneering next-generation silicon photonics to enable AI infrastructure at unprecedented scale, speed, and energy efficiency.” Optical interconnects and advanced package integration are foundational technologies that unlock ultrahigh-bandwidth, energy-efficient connectivity across massive AI data centers.
Coherent CEO Jim Anderson emphasized the partnership’s significance. “This strategic relationship underscores Coherent’s role as a key enabler of next-generation AI data center infrastructure. We are proud to expand our 20-year relationship with NVIDIA.” Following the announcement, Coherent’s stock jumped 15% while NVIDIA shares added about 3%.
Source: NVIDIA News