'Copper wires are slow'...Nvidia expands 4.6 trillion won fiber optic collaboration with Corning

'Copper wires are slow'...Nvidia expands 4.6 trillion won fiber optic collaboration with Corning

Corning to expand optical communication production capacity 10-fold...3 new factories in the US

Nvidia is accelerating the transition from copper wires to fiber optics, partnering with glass and fiber optic manufacturer Corning to resolve artificial intelligence (AI) data bottlenecks.

Nvidia and Corning announced on the 6th (local time) that they have entered into a multi-year commercial and technical partnership to supply advanced fiber optics and other solutions necessary to power next-generation AI infrastructure.

Through this agreement, Corning plans to increase its optical connectivity production capacity in the US tenfold and expand its fiber optic production capacity by 50%.

Additionally, it plans to build three new advanced manufacturing facilities in North Carolina and Texas, creating 3,000 new high-wage jobs.

CNBC, a US economic broadcaster, reported that Nvidia has acquired the right to invest up to $3.2 billion (approximately 4.6 trillion won) in Corning through this agreement.

Specifically, Nvidia has secured a warrant to purchase 15 million shares of Corning stock at $180. An additional $500 million was paid upfront separately.

Corning's expansion of manufacturing facilities will also be carried out with this investment.

Nvidia is expanding its cooperation with Corning in this way because existing copper wires have reached their limits in the process of maximizing the efficiency of AI data centers.

Nvidia plans to fully introduce 'co-packaged optics' technology to replace approximately 5,000 copper wires in its next-generation AI rack, 'Vera Rubin', with Corning's optical fibers.

Fiber optics are not only much faster than copper wires in terms of transmission speed but also consume 5 to 20 times less power.

Jensen Huang, CEO of Nvidia, explained the technical significance of this collaboration, saying, "AI is driving the largest infrastructure build-out of our time, an once-in-a-lifetime opportunity to re-industrialize American manufacturing and supply chains." He added, "It's a process of laying the foundation for AI infrastructure where intelligence moves at the speed of light while upholding the 'Made in America' tradition."

After the news of the agreement with Nvidia became known, Corning's stock price surged, closing at $181.57, up 12% from the previous day's closing price in regular trading.