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
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My grandfather worked for Corning. My Dad lived near the Houghton family that owns Corning. They have the most amazing glass museum and place you can take classes in Corning, NY. It’s like heaven to me.
Corning has been getting the accolades it deserves lately
Who could have imagined that a gold-rush-era company would be doing AI in 2026?
Corning CEO talking about GPU is sign of times
Corning has come a long way from a glass fabricator to smartphone screens now fibre cables👏🏽👏🏽👏🏽
Is it just me or the passage that was presented by the presenter seem very much like AI generated? I felt like the presenter was an AI for a moment there. 😂
0:46 this is incorrect. Copper actually travels faster than fiberoptic. Electricity travels between 70-90% of the speed of light through copper, while photons only travel 2/3rd the speed of light through fiber. The way light bounces and moves through glass fiber is not the same as a laser traveling in a straight line through air. Fiber has a much higher throughput because it can carry a much denser signal than electrons in copper, but that doesn't result in lower latency. It's moreso about lower costs via lower power requirements and fewer cables due to increased throughput.
more you own 🟩⬛ more u win ⬛🟩 congratulations corning, welcome to the club. 📈
I used to pull a ton of fiber. those rolls in the back are giving me flashbacks 😅😅😅 1:26
Samsung has already been in process of replacing the copper-based wires with optic fibers in its factories for several years
Co-packaged optics has been 'five years away' for a decade. I'll believe the scale when I see it working in production, not just press releases.
This is a super old concept that telecom perfecting years ago. This makes tremendous sense to do this. Looks like it’s time to load up on more shares because speed and latency issues go bye bye!
As someone who works with high speed electronics I can say confidently that the power savings and latency claims by using optical fiber are BS. The GPU chips, the most power hungry component in a data center, are still operating via electricity internally. The transmission from GPU to GPU will operate on fiber but the electrical output needs to be converted to optical and that takes time and thus increases latency. Then on the receiving end it needs to be converted back from optical to electrical. Unless some technological breakthrough occurred without me knowing I don’t buy this. The move to fiber makes sense for more overall data throughput from chip to chip or server to server but power savings isn’t a motivator.
Electron might move slow but the electrical signal is as fast as photon in fiber glass (about 0.6 speed of light). The upgrade is not in terms of speed, its about bandwidth
Uploading speed to harvest data is huge
I lived to see the day. I wonder how long till we see fiber connections for home computers.
This is what CNBC has become? A propaganda channel? This looks like a discount production
Awesome video, looking forward to the next one!
Not to mention solid state batteries for server racks with Corning now producing ceramic separators for Quantumscape.
Corning (GLW) and its competitors such as LITE, TER, AEIS, APH, have all risen tremendously this past year, especially YTD with high P/Es. It may be better to invest in Sumitomo (SSUMY) which is also in the fiber optics business but has a much lower P/E.