Key Facts
Nvidia and Corning announced a multi-year partnership on [insert date of announcement] to expand Corning’s U.S. manufacturing capacity. Corning is set to build three new manufacturing facilities in North Carolina and Texas, increasing optical connectivity supply production in the U.S. by 10-fold and optical fiber production by 50%.
Nvidia is investing $500 million upfront and has the option to invest up to $2.7 billion more. As part of this deal, Nvidia will receive warrants to purchase up to 15 million shares of Corning at $180 per share, while also receiving pre-funded warrants to buy 3 million shares at the initial investment price.
This collaboration aims to address supply constraints in critical optical components needed for AI infrastructure amid the ongoing AI boom. Since the start of this trend, Nvidia’s stock has surged by 1,300%, while Corning’s has risen by 481%.
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