Nvidia CEO Jensen Huang told that his company’s new partnership with Corning is a big chance to bring back crucial parts of the technology supply chain to the United States.
“We’re currently building infrastructure on a scale never seen before in human history,” Huang said on “Mad Money” on Wednesday. “Artificial intelligence will become essential infrastructure worldwide, and certainly here in the United States.”
His comments came a day after Nvidia announced a major collaboration with Corning to greatly increase the production of optical connectivity products in the U.S. As part of the deal, Corning is building three new facilities in Texas and North Carolina, which it says will create over 3,000 jobs.
Corning shares jumped more than 12% after the announcement during Wednesday’s trading, while Nvidia shares rose 6%. Cramer’s Charitable Trust, which manages investments for the CNBC Investing Club, owns stock in both Corning and Nvidia.
Huang explained that the massive spending on AI infrastructure creates a unique opportunity to invest again in American manufacturing and supply chains. This comes after decades where much of this production moved overseas to places like Taiwan, China, and Vietnam. “This is an extraordinary opportunity because we can use these market trends to reinvest, to bring American manufacturing back to life for the first time in several generations,” he said.
The partnership focuses on optical technologies used to connect chips within huge AI data centers. Huang mentioned that the next generation of AI infrastructure will need enormous amounts of optical connectivity because computing demands are growing so fast that traditional copper wires can’t keep up.
“We’re going to expand optical technology on a scale that, honestly, no optical companies have ever experienced,” Huang stated. According to Huang, the current wave of AI investment is helping more than just tech companies. He pointed to the rising demand for electricians, construction workers, chip manufacturing employees, and data center infrastructure specialists as proof that this massive buildout is affecting the wider economy.
“The shortages we have, and the demand for all these skilled craft experts, are just incredibly high,” Huang said. Huang concluded that Nvidia’s partnership with Corning is ultimately about making sure the U.S. has the necessary infrastructure and supply chain to support the next stage of AI development.
“We need the support and partnership of the world’s best companies in our supply chain to help us create and achieve this future,” he said. “Silicon photonics and optical technology are a very big part of that.”
