tech
Nvidia spends $6.5B on photonics to fix AI's copper bottleneck
Nvidia has invested at least $6.5 billion in photonics companies since March 2026, including $2 billion each in Coherent, Lumentum, and Marvell, up to $3.2 billion in Corning, and participation in Ayar Labs’ $500 million Series E. The spending aims to replace copper with light-based interconnects as AI training clusters outgrow electrical bandwidth limits.
TL;DR
- Nvidia has invested over $6.5 billion in photonics companies since early March.
- Photonics, using light instead of electrical signals, offers higher bandwidth and lower power consumption than copper.
- Investments include $2 billion each in Coherent and Lumentum, $2 billion in Marvell, up to $3.2 billion in Corning, and participation in Ayar Labs.
- These investments are crucial as AI training clusters demand exponentially more bandwidth than copper can provide over longer distances.
- Nvidia's spending aims to scale the photonics supply chain and potentially lock up components through 2027.
- The move also has geopolitical implications, with Nvidia seeking to secure domestic manufacturing.