Nvidia spends $6.5B on photonics to fix AI’s copper bottleneck Nvidia has committed at least $6.5 billion to photonics companies since March, recognizing that copper wiring is reaching its limits for AI data centers. The company is investing in optical components to enable higher bandwidth and lower power consumption, essential for large-scale AI training clusters. These investments aim to secure the photonics supply chain needed for Nvidia’s next-generation AI platforms and may lock out competitors.

• 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. Continue reading https://thenextweb.com/news/nvidia-photonics-investment-copper-bottleneck-ai-data-centre