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NVIDIA invests $2 billion in Coherent with multiyear CPO supply agreement extending through end of decade
Jim Anderson· Coherent Corp· AI· 2026-05-06· about NVIDIA, Coherent Corp (NVDA, COHR)
“In March, we announced a strategic partnership with NVIDIA focused on multiple CPO-related products and solutions. This partnership includes both NVIDIA's $2 billion equity investment in Coherent, Inc. and a multiyear supply agreement extending through the end of the decade. The agreement covers multiple CPO-related products including our high-power CW laser.”
Why it matters
NVIDIA's large equity investment and decade-long supply commitment signals deep confidence in Coherent's CPO technology and massive long-term demand for co-packaged optics in AI data center scaling. This partnership locks in a major hyperscaler customer for Coherent.
Investment implication
Coherent is secured as a critical supplier for NVIDIA's AI infrastructure scaling through 2030. Competitors without similar long-term agreements face customer concentration risk. Coherent's suppliers of high-power CW lasers, optical components, and related subsystems should expect multi-year demand visibility.