Nvidia requested that suppliers like Lumentum increase indium phosphide (InP) laser production 20-fold by 2030.
The company aims to eliminate critical networking bottlenecks within massive AI data centers.
High-speed optical components provide the essential connections for thousands of clustered GPUs.
Rosenblatt Securities reports that suppliers countered Nvidia’s request with a planned 12-fold capacity increase.
Nvidia previously invested $2 billion in Lumentum in March 2026 to secure its component supply.