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Why Nvidia And Corning’s Fiber Deal Could Change The Game For The AI Boom

Tech

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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vasudhamalhotra949 1 month ago

All I know is I brought my Nividia stock

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grégoire_louis 1 month ago

Fiber Optic is prone to wire taps. Simply bend the wire and tap in. Look it up :)

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helen_hunter 1 month ago

Fiber optics have been used in most EU countries for more than a decade, I'm sure...I have an optic line here in Croatia for more than 10 years now...optic lines for internet/phone and such stuff started in the early 2010. to be more popular in Croatia and EU countries(and it was still expensive and not for everyone to use). I literally worked for Telekom for a few years in Germany,and I remember that in 2018. most of Germany was switching at that time from copper phone lines to optic lines because I literally did the conection for new and existing customers and some had old lines and some of them were switching to new optic lines throughout whole Germany systematically... I mean Americans are really trying to sell something that existed for more than 3 decades as a breakthrough technology, or what? Optic cable was literally invented in the 90s or maybe even before and was even used in the 90s...it became more popular during 2010. and in recent years because you literally can't even have high speed internet over a copper cable like you get with optics that's why a lot of people switched...optics need less fixing than old copper lines...

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cynthia.horn 1 month, 1 week ago

How about you use AI to make your aluminum crimp seals on Matrigel bottles easier to open. Breaking my nails and disposable scalpels just to open some.

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jayeden68 1 month, 1 week ago

We’ve been able to replace copper SFPs with optical SFPs for 20 years already. You’re behind the times.

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davimiguel_silveira 1 month, 1 week ago

good for them. i hope they build more datacenters

thibaultpixel54
thibaultpixel54 1 month, 1 week ago

Huawei has made it already.

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bertrand_charpentier 1 month, 1 week ago

It's not the CNBC I was thinking.

babyberry
babyberry 1 month, 1 week ago

Data sent through as photons/light , is just gods work, that's the intelligence which is all pervasive and we take it for granted

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helen_hunter 1 month, 1 week ago

SAMSUNG GALAXY KINGG KOONG

luisquesada524
luisquesada524 1 month, 1 week ago

Let small companies like accurate, iCreativez Technologies grow to become tech giants like this

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melissa_haynes 1 month, 1 week ago

we're close to peak AI bubble. no announcement of partnership is required to do this. then you've got to ask why...

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suzanneshadow59 1 month, 1 week ago

How long will those jobs last? Will more be created or all 3000 let go eventually? Stop with the data center bs

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angela_rodriguez 1 month, 1 week ago

Stock is at an ATH, why tell us now? you guys sleeping at the wheel?

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margotgilles432 1 month, 1 week ago

Nvidia

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daniela_campos 1 month, 1 week ago

This is just a commercial

ross_shepherd
ross_shepherd 1 month, 1 week ago

Why does she look like she herself is made with Ai. Hate this new "art style"

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dimitrios_bonbach 1 month, 1 week ago

Lmao they found a new way to get ANOTHER round of funding for this AI that will never make a profit?

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irmela_bärer 1 month, 1 week ago

As long as the plates keep going. Smart of Corning to ride the bubble. Even after AI's hype dies down NVIDIA will still be making chips for the remaining AI functions as well as for regular chips.

ekani_goswami
ekani_goswami 1 month, 1 week ago

Woah, anybody else noticed her neck