NVIDIA has announced a long-term strategic partnership with Lumentum Holdings to develop advanced optics technology for next-generation AI data centres.
As part of the deal, NVIDIA will invest $2 billion in Lumentum. The funding will help expand research and development, increase manufacturing capacity, and support the construction of a new U.S.-based fabrication facility.
The agreement also includes a multibillion-dollar purchase commitment from NVIDIA for advanced laser components.
As a part of the transaction, NVIDIA will secure future access to Lumentum’s production capacity under the nonexclusive partnership.
The investment will support Lumentum’s efforts to expand its US manufacturing footprint. The company plans to strengthen domestic production of critical optical components used in AI data centres.
Focus on AI infrastructure
The collaboration centers on optical interconnect technology, which plays a key role in large-scale AI systems.
As AI workloads grow, data centres require faster and more energy-efficient ways to move data between chips and servers. Optical components help improve speed, reduce power consumption, and increase reliability across massive AI networks.
“AI has reinvented computing and is driving the largest computing infrastructure buildout in history,” said Jensen Huang, founder and CEO of NVIDIA. “Together with Lumentum, NVIDIA is advancing the world’s most sophisticated silicon photonics to build the next generation of gigawatt-scale AI factories.”
Led by Michael Hurlston, Lumentum is a company that develops optical and photonic technologies essential for AI, cloud computing, and advanced communications.
With years of innovation, they provide high-performance lasers and optical systems that support energy-efficient data centres, telecom networks, industrial manufacturing, and sensing applications.
Based in San Jose, California, Lumentum has research, manufacturing, and sales facilities around the world.
“This multiyear strategic agreement reflects our shared commitment to advancing the optics technologies that will power the next generation of AI infrastructure,” said Michael Hurlston, CEO of Lumentum. “In support of this collaboration, we are also investing in a new fabrication facility to increase capacity and accelerate innovation. We’re excited to work together to expand what’s possible for the AI optical architectures of tomorrow.”
This move is part of NVIDIA’s broader push to strengthen the hardware ecosystem behind AI. The company has recently announced multiple partnerships aimed at improving networking, connectivity, and infrastructure for large-scale AI systems.’
By securing long-term supply and investing directly in manufacturing capacity, NVIDIA is positioning itself to support the growing demand for AI-powered data centres worldwide.
