Nvidia Partnerships, Foxconn Supercomputers, VESSL AI Cost Cuts, and Super Micro Growth

Happy Tuesday, AI & Data Enthusiasts! 

In today’s edition: 

• Nvidia Partner Hon Hai Boosts Capacity to Meet ‘Crazy’ AI Demand

• Foxconn Partners with NVIDIA to Build Taiwan’s Fastest AI Supercomputer

• VESSL AI Raises $12M to Cut GPU Costs for MLOps by Up to 80%

• Super Micro Shares Surge as AI GPU Shipments Exceed 100,000 Per Quarter

- Naseema Perveen

WHAT CAUGHT OUR ATTENTION MOST

Nvidia Partner Hon Hai Boosts Capacity to Meet ‘Crazy’ AI Demand

The demand for Nvidia’s advanced AI chips is skyrocketing, and Hon Hai Precision Industry, also known as Foxconn, is stepping up to meet the challenge. With unprecedented growth in artificial intelligence spending, the company is boosting its server capacity to deliver Nvidia’s Blackwell chips, setting new benchmarks in production.

• World’s Largest Server Assembly Plant: Hon Hai is building the world’s largest server assembly plant in Mexico, with a planned capacity of 20,000 servers by 2025.

• High Demand: Demand for Nvidia's Blackwell chips is “crazy,” according to Hon Hai's Chairman, Young Liu, who highlighted continued growth beyond expectations.

• Production Delays: Although there are production delays, Nvidia remains optimistic, forecasting several billion dollars in shipments for the upcoming fiscal quarter.

As AI continues to drive innovation, companies like Hon Hai and Nvidia are gearing up to meet this explosive demand, despite challenges in the supply chain. The future of AI development remains bright, with technology giants betting big on next-generation hardware.

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KEEP YOUR EYE ON IT

Foxconn Partners with NVIDIA to Build Taiwan’s Fastest AI Supercomputer

Foxconn is set to elevate Taiwan’s AI capabilities by constructing its fastest AI supercomputer in collaboration with NVIDIA. Unveiled at Hon Hai Tech Day, this supercomputer will leverage NVIDIA’s cutting-edge Blackwell architecture, paving the way for breakthroughs in AI research, healthcare, smart cities, and more.

• AI Performance: The supercomputer will feature NVIDIA’s GB200 NVL72 platform with 4,608 Tensor Core GPUs, expected to deliver over 90 exaflops of AI performance.

• Tech Advancements: Foxconn aims to utilize the supercomputer for advancements in cancer research, large language models, and smart city innovations.

• Timeline: The first phase of the supercomputer will be operational by mid-2025, with full deployment by 2026.

Foxconn’s new AI supercomputer marks a transformative moment for Taiwan’s AI landscape, positioning the island as a leader in AI-driven industries. With NVIDIA’s powerful technology at its core, this project is set to push the boundaries of AI research and innovation.

VESSL AI Raises $12M to Cut GPU Costs for MLOps by Up to 80%

VESSL AI, a South Korean MLOps platform, has secured $12 million in Series A funding to expand its infrastructure. The company aims to drastically reduce GPU expenses for businesses by leveraging a hybrid infrastructure that combines on-premise and cloud resources.

• VESSL AI’s platform reduces GPU costs by up to 80% through a multi-cloud strategy and spot instances, addressing shortages and optimizing model deployment.

• The company has 50 enterprise customers, including Hyundai and TMAP Mobility, and partners with Oracle and Google Cloud.

• VESSL AI offers four main features: VESSL Run (automating model training), VESSL Serve (real-time deployment), VESSL Pipelines (streamlined workflows), and VESSL Cluster (optimizing GPU usage).

By offering innovative solutions that significantly cut costs, VESSL AI is positioning itself as a key player in the crowded MLOps market, helping companies streamline AI model development and deployment while addressing GPU shortages.

Super Micro Shares Surge as AI GPU Shipments Exceed 100,000 Per Quarter

Super Micro's stock soared by 15% after the server company announced it is now shipping over 100,000 AI GPUs per quarter, positioning itself as a major player in the ongoing AI boom. With the average price of Nvidia GPUs around $30,000, this could represent billions in orders for Super Micro. The company’s new liquid cooling solution is also gaining traction, helping data centers cut costs by improving efficiency for constantly running servers.

Despite the positive news, Super Micro is still grappling with financial reporting delays, missing its annual report deadline by about nine weeks. While its stock is recovering from recent lows, it remains significantly down from its peak earlier this year, with ongoing concerns over a Department of Justice probe into potential accounting issues.

🎤 VOICE YOUR OPINION

ICYMI

• Google brings ads to AI Overviews as it expands AI’s role in search.

• AI camera rolled out to monitor driving offenses.

• Google is working on AI that can detect TB through the sound of cough.

• OpenAI’s DevDay unveils new real-time API and developer tools.

• Luma Labs upgraded its Dream Machine AI video model speed, allowing for full-quality generations in under 20 seconds.

MONEY MATTERS

• OpenAI announced a monster $6.6B raise at a $157B valuation.

• AI coding startup Poolside raised a massive $500 million round.

• RAG platform Voyage announced a $28 million fundraising.

• Submer raised $55 million for building more environmentally friendly AI data centers.

• Numa, a startup that uses AI in car dealerships, raised $32 million.

LINKS WE’RE LOVIN’

✅ Podcast: Max Tegmark on China Running By AI, Non-Human Governments, and Global Control.

✅Cheat sheet: Data Center Cheat Sheet.

✅Course: Building Systems with the ChatGPT API. 

✅Webinar: Drone Inspection: Building a Scalable and Efficient Data Pipeline. 

✅Watch: Apple Watch Series 10 Review. 

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