Nvidia and Coherent are advancing a $2 billion partnership with the groundbreaking of a new Sherman, Texas, manufacturing site. The facility will produce specialized materials for lasers that transmit data between computer chips, enabling them to operate as a unified, high-speed system. Nvidia CEO Jensen Huang views such AI infrastructure as central to a new industrial revolution.
The project serves as a practical test of Huang’s belief that artificial intelligence will stimulate employment rather than replace workers. This stance contrasts with public concerns regarding job displacement and energy consumption, even as Nvidia’s valuation approaches $5 trillion. The company is shifting focus from individual chips to comprehensive AI systems.
The initiative occurs amid evolving federal policies. The Trump administration has recently introduced export controls on certain AI models and proposed voluntary government safety evaluations. Despite these regulatory shifts, the administration continues to rely on AI growth for economic expansion and manufacturing gains, with President Trump maintaining a close alliance with Huang.