Nvidia will invest $2 billion in optics solutions supplier Coherent, as part of a multi-year deal that the companies said will “advance the frontier of advanced optics technologies.”

The non-exclusive agreement includes a purchase commitment from the chip giant for future access and capacity rights for Coherent’s advanced laser and optical networking products. Meanwhile, the $2bn investment will support the optics supplier’s R&D efforts and help boost its US-based manufacturing capabilities.

The deal mimics a separate agreement also signed by Nvidia this week with Lumentum, a California-based developer of optical and photonic technologies. Both these investments will add to Nvidia's already aggressive efforts to shore up its supply chain amid growing industry component shortages.

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

Jim Anderson, CEO of Coherent, added: “This strategic relationship underscores Coherent’s role as a key enabler of next-generation AI data center infrastructure. We are proud to expand our 20-year relationship with Nvidia by increasing their access to include multiple product families to help them build the AI data centers of the future.”

Pennsylvania-based Coherent manufactures materials, networking, and laser technologies for use in data centers, industrial manufacturing, and consumer electronics. The company was awarded $79 million in CHIPS Act funding in the dying days of the Biden administration, and in August 2025, it signed a deal with Apple for the production of VCSEL lasers at its Sherman, Texas, facility.