Overview
- Nvidia and Coherent unveiled Tuesday plans to invest $2 billion to upgrade a Sherman, Texas factory to make indium phosphide for lasers used in silicon‑photonics, a key link between AI chips.
- Coherent says the buildout will create about 1,000 jobs, roughly 550 in advanced manufacturing and technical roles, though those figures come from the companies and have not been independently verified.
- Nvidia executives say the lasers will let chips share data more efficiently and could cut AI power needs by up to 50 percent, a claim the companies say would lower operating costs for large AI systems.
- The announcement comes as Washington has tightened export controls on advanced AI chips and models, a shift that companies and commentators say is reshaping where firms locate production and which markets they serve.
- Jensen Huang used the Sherman event to urge new social norms, broader use of AI and clearer safety rules, and his close relationship with President Trump and federal grants for the plant have drawn political attention to the deal.