Nvidia Injects Rp 5 Trillion into Gorilla Glass Producer for AI "Highway"
Nvidia’s dominant position in the artificial intelligence (AI) chip industry has not satisfied the company led by Jensen Huang. The firm is now manoeuvring to eliminate barriers in the supporting physical infrastructure sector.
Nvidia has reportedly invested $300 million (approximately Rp 5 trillion) in the renowned glass and ceramics producer, Corning.
The funds are allocated to build three new factories in the United States (US) specifically for producing optical fibres for AI data centres.
This initiative not only ensures a smooth supply of hardware for Nvidia but also gives the company control over a portion of optical fibre production in the US region.
Through this long-term partnership agreement, the three new factories will be established in the states of North Carolina and Texas. The project is projected to absorb up to 3,000 workers.
Nvidia’s capital injection is certain to multiply Corning’s optical fibre production in the US by up to 10 times. Overall, the US domestic optical fibre production capacity will also be boosted by more than 50 percent.
The selection of Corning as a partner for this tech giant is not without reason. Among gadget enthusiasts, the name Corning is more widely known as the manufacturer of durable smartphone screen protector glass, Gorilla Glass.
However, Corning’s expertise extends far beyond mobile phone screens. The company has a recognised track record in glass science and optical physics.
Corning even holds the throne as the world’s largest optical cable manufacturer, with a market share of 10.4 percent.
The reason is quite simple. Imagine Nvidia’s AI chips as a fleet of supercars. For these cars to race at high speeds, they need a very wide, smooth, and congestion-free “highway”. This is where optical fibres come into play.
The workload of modern AI systems demands hundreds of thousands of AI “brains” (accelerators) to work collaboratively (server farm). They must continuously communicate and exchange massive data sizes in fractions of a second.
If relying only on ordinary copper cables, that data traffic would be congested or lag (high latency). In contrast, optical fibre cables can transmit that data by riding on the speed of light.
Through optical fibre infrastructure, data can flow back and forth smoothly, allowing Nvidia’s chips to deploy their maximum performance without hindrance.