NVIDIA invests $2 billion in Coherent, boosting AI data center optical interconnect technology

K-LinePoet · 2026-03-09T04:07:18+00:00

NVIDIA and Coherent have reached a $2 billion strategic partnership aimed at driving AI data center development through the procurement of optical technologies. The collaboration will ensure NVIDIA's supply of optical network products, support its manufacturing expansion in the U.S., and enhance efficient connectivity solutions.

K-LinePoet

2026-03-09 04:07:18

Abstract generation in progress

NVIDIA announced today that it has reached a multi-year strategic partnership with Coherent, including a $2 billion investment (IT Home note: approximately 13.74 billion RMB at current exchange rates) and billions of dollars in procurement commitments to acquire advanced optical technologies to support AI data center infrastructure development.

This non-exclusive agreement will ensure NVIDIA access to Coherent’s advanced laser and optical communication network products and production capacity in the future. NVIDIA’s $2 billion investment will support Coherent’s research and development, future capacity expansion, and operations, helping it expand manufacturing capabilities within the United States.

The partnership focuses on optical interconnects and advanced packaging integration technologies to provide high-bandwidth, energy-efficient connectivity solutions for AI data centers. The collaboration combines NVIDIA’s expertise in AI and networking with Coherent’s innovation and manufacturing capabilities in optics.

NVIDIA founder and CEO Jensen Huang said, “The computing industry has undergone a fundamental transformation. In the AI era, software runs on intelligence, and AI factories generate tokens in real-time for every interaction and scenario. Through collaboration with Coherent, NVIDIA is leading the next generation of silicon photonics technology to build AI infrastructure with unprecedented scale, speed, and efficiency.”

Jim Anderson, CEO of Coherent, stated that this strategic partnership will extend their 20-year collaboration and enable NVIDIA to access a broader product range to support the construction of future AI data centers.

Founded in 1971, Coherent operates in over 20 countries and provides photonic technologies for data centers, communications, and industrial markets, supplying optical components and systems for various technological applications.

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