Nvidia and Coherent formally announced on Tuesday a significant upgrade to AI infrastructure at a Sherman, Texas, site as part of a $2 billion partnership. The facility will manufacture materials for lasers that transmit data between computer chips, enabling them to function as a unified system with enhanced speed and efficiency.
Coherent projects the expansion will generate approximately 1,000 positions, including roughly 550 roles in advanced manufacturing, engineering, and technical fields. The project received $33 million from the Biden administration under the CHIPS and Science Act and an additional $17 million grant from the Trump administration.
Nvidia CEO Jensen Huang described AI factories as the foundation of a new industrial revolution. The initiative aims to demonstrate that artificial intelligence can drive job creation rather than replace workers. The expanded production will focus on Indium Phosphide, a material used to create high-intensity lasers. Further details regarding the specific timeline or operational scope remain unclear.