Nvidia Commits $2 Billion for Texas AI Factory Producing Indium Phosphide
NVDA•Nvidia is investing $2 billion in a Coherent-owned Texas plant to produce indium phosphide for laser-based data links that combine multiple chips into single high-performance systems. Jensen Huang says these AI factories will drive U.S. manufacturing job growth and test whether AI boosts, rather than replaces, the workforce.
1. Partnership Details
Nvidia has formalized a $2 billion collaboration with Coherent to upgrade its AI infrastructure by building a factory an hour north of Dallas. This facility will support Nvidia’s expansion beyond chip design into end-to-end AI systems by producing critical photonic components.
2. Technology and Production
The new plant will manufacture indium phosphide substrates used in lasers that transmit high-speed data between chips, enabling them to function as unified systems with greater power, speed and efficiency. These laser-based interconnects are key to scaling advanced AI models and reducing latency across multi-chip assemblies.
3. Job and Economic Impact
Jensen Huang positions these facilities as the cornerstone of a new industrial revolution, asserting that AI-driven manufacturing can generate U.S. jobs rather than displace workers. The Texas factory serves as a real-world test of whether advanced AI infrastructure investments can fuel domestic economic growth and strengthen the manufacturing sector.
