Latest news with #GPU-powered
Yahoo
3 days ago
- Business
- Yahoo
HPE gains enterprise traction with private cloud, AI-powered servers
This story was originally published on CIO Dive. To receive daily news and insights, subscribe to our free daily CIO Dive newsletter. Hewlett Packard Enterprise received a two-pronged boost from its AI server and private cloud segments during the second quarter of its 2025 fiscal year, executives said during a Tuesday earnings call. The hardware vendor saw revenue grow 6% year over year to $7.6 billion during the three-month period ending April 30. One-third of the hardware vendor's AI orders were driven by enterprise demand for GPU-powered servers and private cloud systems, according HPE President and CEO Antonio Neri. The company signed $1.1 billion of net new AI systems orders and exited the quarter with a $3.2 billion backlog, Neri said. Enterprise AI server and networking deployments gained momentum in both on-premises and colocation data centers, according to Neri. 'What we see is customers modernizing their data center, especially because they are focused on data sovereignty and compliance,' he said. Organizations are standing up infrastructure for retrieval-augmented generation, fine tuning and inferencing, he added. As enterprises weigh their AI procurement options, the market has split between providers that are pushing customers to public cloud and vendors steering them in the direction of on-premises alternatives. SAP, Salesforce and Workday are among the enterprise software giants driving businesses to cloud-based agentic AI. Data cloud company Snowflake gave its platform an agent-oriented overhaul earlier this week. On the other side of the divide, on-premises private cloud is enjoying a concurrent resurgence. HPE rolled out upgraded versions of its Morpheus virtualization software and private cloud bundle last month and announced the HPE Private Cloud AI integration with Nvidia's enterprise AI platform. Dell, which last week reported more than $12 billion in AI server orders during the three-month period ending May 2, introduced a private cloud suite in May, too. 'We experienced exceptionally strong demand for AI-optimized servers,' Dell Vice Chairman and COO Jeff Clarke said during a Q1 2026 earnings call, noting the company shipped $1.8 billion of the units, leaving a backlog of $14.4 billion. HPE remains entrenched in the enterprise data center side of the hybrid cloud equation, as it digs out from execution challenges that triggered a 5% workforce reduction announced during a March earnings call and other remediation efforts. 'Since our last update, we have closely monitored the changes implemented to improve profitability,' Neri said Tuesday. 'This includes the rollout of new pricing analytics, increased discount scrutiny and inventory management.' The company expects to eliminate 2,500 positions by the end of the year and ended the recent quarter with a headcount under 59,000, its lowest since splitting from Hewlett-Packard in 2015, according to EVP and CFO Marie Myers. AI is integral to HPE's optimization efforts. The company will use agentic tools to improve efficiency internally, Myers said. 'Within finance, HPE and Deloitte co-developed Zuora AI CFO insights agents built on Nvidia's advanced AI stack and deployed on our own HPE private cloud AI platform,' said Myers. 'We're turning data into actionable intelligence, accelerating our reporting cycles by approximately 50% and reducing processing costs by an estimated 25%.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Straits Times
22-05-2025
- Business
- Straits Times
Malaysia downplays Huawei deal as US checks China's AI reach
The project caught the attention of the White House, which is working to prevent Beijing from capturing foreign AI markets. PHOTO: EPA-EFE Malaysia declared it will build a first-of-its-kind AI system powered by Huawei Technologies Co. chips, only to distance itself from that statement a day later, underscoring the Asian nation's delicate position in the US-Chinese AI race. Deputy Minister of Communications Teo Nie Ching said in a speech May 19 her country would be the first to activate an unspecified class of Huawei 'Ascend GPU-powered AI servers at national scale'. Malaysia would deploy 3,000 units of Huawei's primary AI offering by 2026, she said in prepared remarks reviewed by Bloomberg News. Chinese startup DeepSeek would also make one of its AI models available to the South-east Asian country, the official added. The project, first reported by the local outlet Malaysia-China Insight, caught the attention of the White House, which is working to prevent Beijing from capturing foreign AI markets. 'As I've been warning, the full Chinese stack is here,' Mr David Sacks, President Donald Trump's AI and crypto czar, wrote on X. The Trump administration was rescinding Biden-era global semiconductor curbs, which restricted chip sales to Malaysia, 'just in time,' he said. When reached for comment by Bloomberg News on May 20, Ms Teo's office said it is retracting her remarks on Huawei without explanation. It's unclear whether the project will proceed as planned. A Huawei representative said that the company hasn't sold Ascend chips in Malaysia and that the government hasn't bought any. On May 21, the Ministry of Investment, Trade and Industry issued a separate statement disavowing the project, saying it was privately driven. 'The said initiative was not developed, endorsed, or coordinated by the government of Malaysia, nor does it form part of any government-to-government agreement or nationally mandated technology programme,' the ministry said in its statement. The unusual about-face comes after the US Commerce Department released – then tweaked – guidance warning overseas companies against using Huawei's Ascend. The use of those chips 'anywhere in the world' could violate US export controls, the agency originally said, before removing that globally focused language during a spat with Beijing. Malaysia is in many ways the perfect test of the Trump administration's new-fashioned AI diplomacy. The idea, championed in part by Mr Sacks, is to proliferate American AI hardware across the world – with security guardrails – to ensure that companies building data centers in South-east Asia or the Middle East don't turn to Chinese alternatives. The US has limited time to entrench itself in those markets, Mr Sacks argues, as Huawei makes progress in catching up with industry leader Nvidia Corp. At the same time, the Trump administration has promised to crack down on illegal shipments of advanced Nvidia chips to China via third countries. Officials have identified Malaysia as a particular concern. The Trump administration's urgency stems in part from the growing prowess of Huawei, which has emerged as China's national semiconductor champion since its breakthrough in processors for the Mate 60 Pro in 2023. The company has since expanded into adjacent arenas from EVs to AI, where it's begun making chips it hopes can compete with Nvidia. Huawei's Ascend lineup is thought to be so far largely confined to use in China by domestic firms that otherwise can't legally access Nvidia's cutting-edge products. The Ascend chips are still quite capable, though, particularly in running AI services, according to industry experts. Mr Jensen Huang, Nvidia's chief executive officer, called Huawei one of the world's most formidable technology companies and said China was 'right behind' the US in the AI race. That race ramped up last week during Mr Trump's whirlwind trip to the Middle East. His administration announced deals to ship tens of thousands – and likely upwards of a million – advanced Nvidia and Advanced Micro Devices Inc. chips to the United Arab Emirates and Saudi Arabia. Those two Gulf nations have huge AI ambitions and long been a focus of Washington's semiconductor policy. The deals, which still require licenses for actual shipments, have sown divisions within the Trump administration and drawn bipartisan criticism from Capitol Hill. China hawks worry the agreements could benefit Beijing, which has deep ties in the region. Some policymakers are also concerned the projects, which include a UAE data center that could be one of the world's largest, may undermine efforts to ensure the most significant AI progress happens on American soil. As Mr Trump officials hammer out the fine print of the Gulf accords, they're drafting a replacement for former President Joe Biden's so-called AI diffusion framework. Those regulations, which Mr Sacks mentioned in his post, were a dramatic expansion of chip curbs originally focused on China. They imposed new licence requirements for many countries including Malaysia, as well as national caps on the volume of sales that could be approved – with ways for companies to bypass those limits in exchange for security guarantees. Malaysia is a high priority. US firms including Oracle Corp. are planning massive data center clusters in the nation, and are keen to import high-end Nvidia chips for those facilities – in volumes that may not have been possible under Biden-era rules. The regulations barred American hyperscalers from housing more than 7 per cent of their global capacity in any one nation outside the US and a handful of close partners. Oracle was set to blow past that limit in Malaysia, according to the research firm SemiAnalysis. One element of Mr Trump's replacement regulations, Bloomberg News has reported, will be chip controls on countries suspected of diverting US hardware to China – including Malaysia. Trump officials this year pressured Malaysian authorities to crack down on semiconductor transshipment to China. The country is also in the cross hairs of a court case in Singapore, where three men have been charged with fraud for allegedly disguising the ultimate customer of AI servers that may contain high-end Nvidia chips barred from China. Malaysian officials are probing the issue. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Yahoo
22-02-2025
- Business
- Yahoo
Tempus AI, Inc. (TEM) Secures $300 Million to Fuel Ambry Genetics Acquisition
We recently published a list of . In this article, we are going to take a look at where Tempus AI, Inc. (NASDAQ:TEM) stands against the other AI stocks in news and ratings you should not miss. On February 19, CNBC reported significant funding rounds for multiple AI-focused startups, highlighting the quick expansion of AI innovations across industries like healthcare, cloud computing, and model deployment. Baseten, a San Francisco-based company founded in 2019, raised $75 million at an $825 million valuation to improve its AI model deployment services. Using cloud infrastructure from Amazon and Google, Baseten helps clients access GPUs for AI inference, reducing costs by over 40% while supporting the cost-effective DeepSeek-R1 reasoning model. Its revenue increased sixfold in the last fiscal year, and its clients include over 100 enterprises and companies such as Descript, Patreon, and Writer. OpenEvidence, an AI health-tech startup in Cambridge founded by Daniel Nadler, raised $75 million from Sequoia, bringing its valuation to $1 billion, as per CNBC. The company's AI chatbot, trained on data from The New England Journal of Medicine and peer-reviewed journals, assists doctors with clinical decisions and is already used by a quarter of U.S. physicians. The chatbot avoids inaccuracies through tailored training and has grown rapidly due to word-of-mouth recommendations among doctors. OpenEvidence will also use its new funding to establish partnerships, including one with NEJM Group, and Nadler views the company as a solution to doctor burnout and the projected physician shortfall. Lambda, a cloud computing firm specializing in AI development, raised $480 million in a Series D round co-led by Andra Capital and SGW, reaching a $2.5 billion valuation and total funding of $863 million. Lambda rents out Nvidia GPU-powered servers and offers software to train and deploy AI models, including open-source ones like DeepSeek-R1. CEO Stephen Balaban highlighted Lambda's ability to repurpose its 25,000 GPUs for open-source AI models, which has fueled demand for H200 chips. The company will use the funding to expand its GPU inventory and further develop its software, including its Model Inference API and Chat AI Assistant. Lambda is positioned to meet the surging demand for AI infrastructure and is serving over 5,000 customers across industries such as manufacturing and finance, For this article, we selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey's Q4 database of over 1000 hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (). Copyright: nexusplexus / 123RF Stock Photo Number of Hedge Fund Holders: 17 Tempus AI, Inc. (NASDAQ:TEM) provides healthcare technology solutions, including diagnostic testing, clinical trial matching, data analytics, and AI-driven platforms for healthcare and pharmaceutical industries. On February 19, Tempus AI, Inc. (NASDAQ:TEM) secured $300 million in additional debt financing from Ares Management's Credit funds to support its acquisition of Ambry Genetics, finalized on February 3, 2025. It brings Ares' total funding for Tempus to approximately $560 million since 2022. Tempus uses AI and data-driven technology to improve clinical care and research and the management emphasized that this investment will help drive innovation in precision medicine. The company views the funding as crucial for advancing its technological solutions and improving patient outcomes across oncology, cardiology, and other medical fields. Douglas Dieter, Dr.P.H., Partner in the Ares Credit Group commented: 'Over the last two years, we've been impressed by the Tempus team's execution of its growth strategy and complementary acquisition of Ambry, and we look forward to further supporting their efforts in AI-enabled solutions that help advancements in medicine.' Overall, TEM ranks 7th on our list of the AI stocks in news and ratings you should not miss. While we acknowledge the potential of TEM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TEM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
