SHERMAN, TEXAS — Nvidia plans to upgrade its artificial intelligence infrastructure through a $2 billion partnership with Coherent. This collaboration includes the construction of a manufacturing facility in Sherman, Texas.

The facility will produce material for a laser that transmits data between computer chips, and will increase production of Indium Phosphide, a compound used to manufacture optical lasers. The laser technology enables computer chips to function as a unified system with increased processing speed and efficiency while reducing power consumption by up to 50 percent.

Coherent projects the factory will create 1,000 jobs, with approximately 550 designated for advanced manufacturing, engineering, and technical positions. The Biden administration approved $33 million in CHIPS and Science Act funding to help construct the Coherent facility. The Trump administration previously provided a $17 million grant to the facility.

Nvidia Chief Executive Officer Jensen Huang stated that "AI factories are the infrastructure of the new industrial revolution." Nvidia manufactures computer chips for artificial intelligence and has expanded its business focus from semiconductor components to complete artificial intelligence systems. The Sherman facility is intended to evaluate whether artificial intelligence will generate employment or displace workers.

Jim Anderson, Chief Executive Officer of Coherent, said, "This investment expands America’s capacity to manufacture critical AI-enabling technologies, creates high-value jobs, and reinforces U.S. leadership in advanced manufacturing, photonics, and innovation." Huang also commented on proposals for government equity ownership in artificial intelligence companies. "I’m not exactly sure what they’re trying to achieve. But just remember that these are American companies. Their success benefits the stock price, of which many Americans are investors in," Huang said.