Nvidia will invest $2 billion in each of photonics makers Lumentum and Coherent, with the aim of bolstering its data center chips with technology that can better meet the growing need for faster artificial intelligence processors.
Nvidia executives recently stated that the company would use its large cash reserve to invest in the AI ecosystem and help boost the production of models.
Nvidia has been aggressively pursuing new technologies to help boost the speed of its chips, with photonics emerging as a popular choice for many chipmakers looking to meet higher inference requirements.
The two deals could also help the AI chip giant extend its lead in the rapidly evolving AI hardware sector, as many major cloud computing providers are starting to develop their own microprocessors.
Custom chipmaker Marvell Technology announced the acquisition of semiconductor startup Celestial AI last year in a $3.25 billion deal to explore its work in photonics,which uses light rather than electrical signals to create connections between AI chips.
One of Nvidia’s top customers, Meta, signed a $60 billion deal with rival AMD last week, highlighting Nvidia’s need to improve semiconductor performance to fend off competitors.
Continues after advertising
The partnerships announced on Monday include multi-billion dollar purchase commitments from Nvidia and future capacity rights and access to advanced laser and optical networking products from Lumentum and Coherent.
Lumentum chief executive Michael Hurlston said the company will invest in a new factory to increase capacity.
