Nvidia is investing billions into this emerging technology that could change the AI industry
Nvidia has invested at least $6.5 billion in companies developing photonics technology to address a major bottleneck in the rollout of AI. Photonics, which uses light to transmit data, is considered a more efficient alternative to electrical data transfer, consuming less energy. This investment is expected to help Nvidia scale its AI infrastructure without incurring high energy costs.
- ▪Nvidia has committed at least $6.5 billion to photonics technology companies in the past three months.
- ▪The company has announced investments into Lumentum, Coherent, Marvell, Corning, and Ayer Labs.
- ▪Photonics is seen as a more efficient alternative to electrical data transfer, which consumes more energy.
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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.
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