The 2026 Photon Pivot: NVIDIA’s $2 Billion Investment in Coherent and the End of Copper By TechInsider Insights | Updated: March 2, 2026 Today, March 2, 2026, the computing landscape shifted from electrons to light. In a definitive move to break the "interconnect bottleneck," NVIDIA announced a massive $2 billion strategic investment in Coherent . This deal, part of a broader $4 billion optics push alongside Lumentum, marks the official commercialization of Silicon Photonics for the next generation of "AI Factories." As AI models scale toward artificial general intelligence (AGI), the traditional copper wires connecting GPUs have become a thermal and physical liability. NVIDIA’s move ensures that the future of intelligence is powered by photons, not just electricity. The Copper Bottleneck: Why AI Needs Light For years, data centers relied on copper cables. However, at the speeds required for NVIDIA's new Ru...
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