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Nvidia has committed at least $6.5 billion into companies developing photonics technology in the past three months, as the company races to invest in solving one of the major bottlenecks to the rollout of AI. Photonics, the use of light to transmit data, is an emerging technology considered to be a more efficient alternative to the current process of transferring data using electricity. Electrical data transfer consumes more energy — a factor which is increasingly seen as a blocker to the broader deployment of AI. Since the beginning of March, Nvidia has announced $2 billion investments into Lumentum , Coherent and Marvell , all of which are developing photonics tech. The chip giant also said it would invest $500 million into Corning to develop advanced optical connectivity solutions, and participated in optics startup Ayer Labs' $500 million Series E funding round. "Photonics represents a way for Nvidia to scale their AI infrastructure without the energy costs that staying with electrical and copper will incur," Alvin Nguyen, senior analyst at Forrester, told CNBC. "By investing in photonics companies, Nvidia is making sure that advancements in photonics continue and it will prevent them from hitting a scalability and performance wall that will occur if they remain on electrical and copper."
Solving bottlenecks
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