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Nvidia unveils Texas AI infrastructure upgrade with Coherent

AP reported that Nvidia and Coherent unveiled a $2B AI infrastructure upgrade in Texas to expand laser-component production for AI systems.

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The Associated Press reported that Nvidia formally unveiled a major AI infrastructure upgrade tied to its $2B partnership with Coherent in Sherman, Texas. The expanded factory will produce Indium Phosphide material for lasers that transmit data between chips, helping AI systems operate faster and more efficiently while cutting power consumption by up to 50%. The story matters because it grounds the AI infrastructure boom in domestic manufacturing, supply-chain policy, CHIPS Act support, and Nvidia's shift from selling chips to providing complete AI systems.

Key details: Published June 16, 2026 at 13:03 UTC, The project is part of Nvidia's $2B partnership with Coherent, The factory expansion is expected to create about 1,000 jobs, AP reported the optical technology could cut power consumption by up to 50%.

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