Nvidia invests $4 billion in photonics technology manufacturer

Nvidia recently announced a $2 billion investment each in photonics manufacturers Lumentum and Coherent to enhance their data center chips and meet the rapidly growing demand for AI processors. Following the announcement, shares of both Lumentum and Coherent rose more than 7% in pre-market trading. Nvidia hopes that these collaborations will leverage light and photonics-based technologies to increase chip speeds, thereby better supporting artificial intelligence infrastructure.