Graphics processing powerhouse Nvidia announced Monday it will commit $2 billion to each of two technology partnerships designed to accelerate its artificial intelligence chip capabilities.
The California-based company revealed separate deals with photonic technology firms Lumentum and Coherent, targeting improvements to data center processors that can handle increasingly demanding AI workloads.
Wall Street responded positively to the news, with both Lumentum and Coherent stock prices climbing more than 7% during pre-market trading following Monday’s announcement.
Company leadership previously indicated during Nvidia’s latest quarterly earnings call that the firm planned to deploy its substantial cash holdings toward strengthening the artificial intelligence ecosystem and enhancing model performance capabilities.
Photonic and light-based technologies have gained traction among semiconductor manufacturers seeking to accelerate chip performance speeds, particularly as inference processing demands continue escalating across the industry.
These strategic partnerships encompass multi-billion dollar procurement agreements from Nvidia, while securing future access and capacity rights to cutting-edge laser and optical networking solutions from both partner companies.
The financial backing will enable Lumentum and Coherent to expand their research and development efforts, increase production capacity, and strengthen operations while developing domestic manufacturing facilities within the United States.
