NVIDIA and Coherent Announce $2B Strategic Partnership for AI Infrastructure
NVIDIA has announced a strategic partnership worth billions with optical technology leader Coherent Corp on March 2, 2026. This includes a $2 billion investment to advance the next-generation AI data center infrastructure. The multi-year agreement positions Coherent as a critical supplier of advanced optics technology for AI systems through the end of the decade.
As part of the deal, NVIDIA has committed to a multibillion-dollar purchase agreement for Coherent’s advanced laser and optical networking products. At the same time, it is investing $2 billion to support the company’s U.S.-based manufacturing expansion, research and development, and production capacity. The partnership focuses on silicon photonics and optical interconnects—technologies essential for enabling ultra-high-bandwidth, energy-efficient connectivity in AI data centers.
“We are proud to expand our 20-year relationship with NVIDIA by increasing their access to include multiple product families to help them build the AI data centers of the future,” said Jim Anderson, CEO of Coherent. In a recent interview, Anderson revealed the supply agreement “stretches out to the end of the decade” and represents “a step function expansion in our partnership with NVIDIA.”
The announcement has significant market implications. Coherent’s stock surged over 40% year-to-date, and the company will be added to the S&P 500 index on March 23, 2026. Coherent’s datacenter and communications segment revenue hit $1.208 billion in Q2 fiscal 2026, representing a 34% year-over-year growth.
Source: NVIDIA News