Nvidia Corp.will invest $4bn euros in optical technology developers Coherent Corp.and Lumentum Holdings Inc.
According to a press release, the company has entered into a multi-year strategic agreement with Coherent to develop advanced optical technologies, which includes both expansion of its manufacturing capabilities in this area and further research and development activities.
The agreement includes a “multi-billion dollar commitment” for Nvidia to purchase Coherent’s solutions, and for it to gain access to capacity to manufacture advanced laser and optical products.
“In addition, Nvidia will invest $2bn in Coherent to support the company’s research and development (R&D), capacity expansion and operations as it develops its manufacturing capabilities in the US,” the statement said.
In a separate press release, Nvidia announced a multi-year strategic agreement with Lumentum that includes a multi-billion dollar investment to acquire its solutions, as well as a $2bn investment to support the company’s R&D and manufacturing capabilities.
Both companies’ technologies play an important role in scaling SHI enterprises, helping to improve energy efficiency and network resilience.
Nvidia shares are losing 1.3 per cent in early trading on Monday, with Coherent securities up 5.8 per cent and Lumentum up 7.3 per cent.