Nvidia investing $2B in Coherent

Nvidia Corp. announced a $2 billion investment in Saxonburg-based Coherent Corp, which manufactures semiconductors, lasers and other devices.

Beyond the investment, the two inked a nonexclusive agreement that includes a purchasing agreement from Nvidia (NASDAQ: NVDA) for advanced laser and optical products from Coherent, (NYSE: COHR) to support research and development and further expansion of Coherent’s U.S.-based manufacturing. The investment itself came as part of a $4 billion investment into Coherent and Lumentum, (NASDAQ: LTE), a similar photonic technology manufacturer.

“Computing has fundamentally changed,” Nvidia CEO and founder Jensen Huang said in a prepared statement. “In the age of AI, software runs on intelligence with tokens generated in real time by AI factories for every interaction and every context. With Coherent, Nvidia is pioneering next-generation silicon photonics to enable AI infrastructure at unprecedented sale speed and energy efficiency.”