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Investment Announcement
Nvidia announced on Monday that it is investing $2 billion each into Lumentum and Coherent, two companies developing photonics technology for data centers.
These investments target components such as optical transceivers, circuit switches, and lasers, which enable high-speed data movement over long distances.
Technology Benefits and Strategic Context
The photonics technology from Lumentum and Coherent could improve energy efficiency, data transfer speeds, and bandwidth in future AI data centers.
This move builds on Nvidia's 2020 acquisition of the network hardware company Mellanox, which strengthened NVLink and increased data flow between GPUs.
For Lumentum, the agreement is a nonexclusive multiyear deal that includes a multibillion purchase commitment.
