NVIDIA Backs US Optics Manufacturing With $2 Billion Investment

Amid surging demand for AI infrastructure, NVIDIA commits $2 billion to Lumentum, securing optics innovation and US manufacturing expansion for data centres.

NVIDIA has announced a multiyear partnership with Lumentum Holdings Inc to accelerate the development of advanced optics technologies to support advanced AI infrastructure. The agreement includes a $2 billion investment by NVIDIA to expand Lumentum’s research, manufacturing capacity and operations in the US.

Furthermore, under the non-exclusive arrangement, NVIDIA has committed to multibillion-dollar purchases of advanced laser components and has secured future access rights to capacity.

The collaboration will focus on optical interconnect technology and package integration, which are considered essential for scaling AI data centres while improving energy efficiency and network resilience.

The investment will also enable Lumentum to build a new fabrication facility in the US, increasing production capacity and supporting innovation in silicon photonics for large-scale AI systems.

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Jensen Huang, founder and chief executive of NVIDIA, described AI as driving “the largest computing infrastructure buildout in history” and said the collaboration would advance silicon photonics to power gigawatt-scale AI factories.

Michael Hurlston, Chief Executive Officer (CEO) of Lumentum, highlighted the agreement as a shared commitment to developing optics technologies for future AI architectures, noting that the new facility would expand capacity and accelerate innovation.

This agreement follows a series of recent announcements by NVIDIA, including collaborations with Coherent and global telecom players. The company stated that the deal reflects growing demand for optical technologies in data centres, where high-performance connectivity is critical to supporting increasingly complex AI workloads.

By strengthening domestic manufacturing and research, the partnership also aligns with broader efforts to expand US-based production of advanced technologies.

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Shubha Mitra
Shubha Mitra
Shubha Mitra is an Assistant Editor at EFY, keenly interested in policies and developments shaping the electronics business.

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