{"id":258345,"date":"2026-05-29T01:00:00","date_gmt":"2026-05-29T05:00:00","guid":{"rendered":"https:\/\/news-you-need.com\/index.php\/2026\/05\/29\/nvidia-is-investing-billions-into-tech-that-could-change-the-ai-sector\/"},"modified":"2026-05-29T01:15:09","modified_gmt":"2026-05-29T05:15:09","slug":"nvidia-is-investing-billions-into-tech-that-could-change-the-ai-sector","status":"publish","type":"post","link":"https:\/\/news-you-need.com\/index.php\/2026\/05\/29\/nvidia-is-investing-billions-into-tech-that-could-change-the-ai-sector\/","title":{"rendered":"Nvidia is investing billions into tech that could change the AI sector"},"content":{"rendered":"

Nvidia is investing billions into tech that could change the AI sector<\/a><\/p>\n

https:\/\/www.cnbc.com\/2026\/05\/29\/nvidia-photonics-investment-ai.html<\/a><\/p>\n

Publish Date: 2026-05-29 01:00:00<\/a><\/p>\n

Source Domain: www.cnbc.com<\/a><\/p>\n

<\/p>\n

Nvidia<\/span><\/span><\/span> 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. <\/p>\n

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 \u2014 a factor which is increasingly seen as a blocker to the broader deployment of AI.<\/p>\n

Since the beginning of March, Nvidia has announced $2 billion investments into Lumentum<\/span><\/span><\/span>, Coherent<\/span><\/span><\/span> and Marvell<\/span><\/span><\/span>, all of which are developing photonics tech. The chip giant also said it would invest $500 million into Corning<\/span><\/span><\/span> to develop advanced optical connectivity solutions, and participated in optics startup Ayer Labs’ $500 million Series E funding round.<\/p>\n

“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. <\/p>\n

“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.”<\/p>\n

Solving bottlenecks<\/h2>\n

Photonics can be used in AI infrastructure by using light to move data between graphics processing units (GPUs), memory, networking chips, servers and data centers, instead of relying only on electrical signals running along copper.<\/p>\n

While copper is the main connectivity standard today because of its lower cost and high reliability, photonics will become more prominent in AI infrastructure over time, Brian Colello, senior equity analyst at Morningstar, told CNBC.<\/p>\n

“Nvidia’s roadmap of next generation AI rack-scale solutions will require an increasing amount of optical connectivity to process the exponentially rising bandwidth with new models and higher usage,”…<\/p>\n

Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Nvidia is investing billions into tech that could change the AI sector https:\/\/www.cnbc.com\/2026\/05\/29\/nvidia-photonics-investment-ai.html Publish Date:…<\/p>\n","protected":false},"author":1,"featured_media":258347,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/image.cnbcfm.com\/api\/v1\/image\/108279129-1773774466063-gettyimages-2266555824-NVIDIA_GTC.jpeg?v=1774007143&w=1920&h=1080","fifu_image_alt":"","footnotes":""},"categories":[8],"tags":[66,64],"class_list":["post-258345","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-emerging","tag-energy"],"_links":{"self":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/258345"}],"collection":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/comments?post=258345"}],"version-history":[{"count":1,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/258345\/revisions"}],"predecessor-version":[{"id":258349,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/258345\/revisions\/258349"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/media\/258347"}],"wp:attachment":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/media?parent=258345"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/categories?post=258345"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/tags?post=258345"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}