Nvidia and Coherent launch $2 billion AI infrastructure upgrade at Sherman, Texas plant

Nvidia said it will work with Coherent on a $2 billion AI infrastructure upgrade at Coherent’s plant in Sherman, Texas, to scale production of indium phosphide lasers. The lasers are designed to enable high-speed, low-power optical links between chips, supporting Nvidia’s “AI factory” system architecture. The project is backed by $50 million in subsidies from two U.S. administrations and is expected to create 1,000 jobs. The partnership underscores Nvidia’s push to expand from a GPU supplier into an end-to-end AI systems provider.