Nvidia is investing billions into this emerging technology that could change the AI industry - CNBC

NVIDIA has committed at least $6.5 billion to photonics technology companies over the past three months, aiming to address a major bottleneck in AI deployment. Photonics, which uses light to transmit ... Read original →

NVIDIA’s $6.5B photonics blitz targets the AI industry’s looming 'power wall.' This move triggers a cascade: EUV and 3nm processes must evolve to support heterogeneous silicon photonics integration, while data center architectures shift from electrical to optical interconnects—forcing memory and switch vendors to redesign core IP. Geopolitically, tightening U.S.-China export controls on advanced packaging and photonic components will inflate localization costs, especially for firms reliant on Taiwan, China fabs. AMD and Marvell will likely fast-track in-house co-packaged optics (CPO), while Microsoft and Alphabet may deepen equity ties with startups like Celestial AI. Over the next 18 months, standards warfare will intensify; NVIDIA is securing supply chain dominance now to make optical I/O the de facto interface by 2027–2028, fundamentally reshaping semiconductor value chains.