Why Nvidia And Corning’s Fiber Deal Could Change The Game For The AI Boom

Nvidia and Corning just announced a massive, multiyear deal to expand U.S. manufacturing for new optical fiber technology, likely to flip the script for AI data center efficiency. As a part of the partnership, Corning will build three new factories in North Carolina and Texas entirely devoted to products for Nvidia, creating 3,000 new jobs. And while the companies didn't share many specifics, it's likely the deal is worth tens of billions of dollars. This could be the big deal many analysts have been waiting for — the debut of a new technology called co-packaged optics. It could eventually mean Nvidia replaces the 5,000 copper cables, two miles worth, inside its rack-scale systems like Vera Rubin, with tiny glass fibers made by Corning, something that, until now, has never been accomplished at scale. Co-packaged optics would vastly reduce the energy needs of an AI data center, because glass is far more energy efficient than copper. CNBC's Katie Tarasov explains what this deal could mean for the AI boom. Produced and Shot by: Katie Tarasov Edited by: Andrew Evers Additional Camera: Magdalena Petrova, Marc Ganley Senior Director of Video: Jeniece Pettitt Additional Footage: Getty Images, Nvidia » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Want to get ahead at work? Then you need to learn how to make effective small talk. In CNBC’s new online course, How To Talk To People At Work, expert instructors teach you how to use everyday conversation to gain visibility, build meaningful relationships and advance your career. Sign up now: https://cnb.cx/4sGlSkh Connect with CNBC News Online Get the latest news: https://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC on Threads: https://cnb.cx/threads Follow CNBC News on X: https://cnb.cx/FollowCNBC Follow CNBC on WhatsApp: https://cnb.cx/WhatsAppCNBC #CNBC Corning And Nvidia Strike Massive AI Fiber Deal