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Nvidia has entered into multiyear agreements worth $4 billion with Coherent and Lumentum Holdings to secure advancements in AI data-center components. The agreements involve multibillion-dollar purchase commitments for advanced laser systems and optical networking products, supporting the development of U.S.-based fabrication facilities.

This move aims to enhance the domestic supply chain as Nvidia scales its GPU architectures. The partnerships reflect a shift towards silicon photonics, which are essential for connecting GPUs in data centers. Following the news, shares of both companies rose over 7% in premarket trading.