NVIDIA invests $2 billion in Lumentum for advanced optics technology

NVIDIA (NASDAQ: NVDA) announced a multiyear strategic agreement with Lumentum Holdings Inc. (NASDAQ: LITE) that includes a $2 billion investment and a multibillion-dollar purchase commitment for advanced laser components.

The nonexclusive agreement provides NVIDIA with future capacity access rights for advanced laser components while supporting Lumentum's research and development efforts for AI infrastructure technologies. NVIDIA's investment will help fund Lumentum's expansion of U.S.-based manufacturing capabilities through a new fabrication facility.

The partnership focuses on developing optical interconnect technology and package integration for AI data centers. The companies stated that these technologies are intended to improve energy efficiency and resiliency of large-scale AI networks.

"AI has reinvented computing and is driving the largest computing infrastructure buildout in history," said Jensen Huang, founder and CEO of NVIDIA. "Together with Lumentum, NVIDIA is advancing the world's most sophisticated silicon photonics to build the next generation of gigawatt-scale AI factories."

Michael Hurlston, CEO of Lumentum, said the agreement reflects the companies' commitment to advancing optics technologies for AI infrastructure. "In support of this collaboration, we are also investing in a new fabrication facility to increase capacity and accelerate innovation," Hurlston stated.

Lumentum operates as a provider of optical and photonic technologies for data center connectivity, telecommunications networks, and industrial applications. The company is headquartered in San Jose, California.

The information is based on a press release statement from the companies.

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