IBM does not aim to compete with Nvidia in helping create and train AI systems, but is ..., says Tom McPherson, GM of Power systems, IBM
Tired of too many ads? go ad free now
This update, the first major refresh to its "Power" chip line since 2020, positions IBM to compete more aggressively in the specialized data center market. Traditionally, IBM's Power chips have been a strong contender against offerings from Intel and Advanced Micro Devices (AMD), particularly in demanding sectors such as financial services, manufacturing, and healthcare.
Similar to Nvidia's AI servers, IBM's Power systems are an integrated solution, combining both powerful chips and sophisticated software.
This tight integration, Tom McPherson, General Manager of Power Systems at IBM, told Reuters, has allowed the company to prioritise unparalleled reliability and robust security.
IBM is not competing with Nvidia
McPherson clarified that IBM's strategy isn't to directly compete with Nvidia in the realm of creating and training AI systems. Instead, Big Blue is sharply focused on streamlining AI deployment for inference – the crucial process of putting an AI system to work to accelerate business tasks.
"We can integrate AI capabilities seamlessly into this for inference acceleration and help their business process improvements," McPherson reportedly said in an interview, referring to work with early customers. He, as per the Reuters report, added, "It's not going to have all the horsepower for training or anything, but it's going to have really good inferencing capabilities that are simple to integrate."
A key highlight of the new Power11 systems, which will be available starting July 25, is their exceptional uptime.
Tired of too many ads? go ad free now
IBM claims these systems will require no planned downtime for software updates, and their average unplanned downtime each year will be a mere 30 seconds. Furthermore, the Power11 systems are engineered to detect and respond to a ransomware attack within a minute, offering a critical defense against increasingly sophisticated cyber threats.
Looking ahead, IBM plans to integrate the Power11 with Spyre, its AI chip introduced last year, in the fourth quarter of 2025.
"We can integrate AI capabilities seamlessly into this for inference acceleration and help their business process improvements," McPherson stated in a recent interview, referencing collaborations with early customers. He emphasized the system's ability to deliver "really good inferencing capabilities that are simple to integrate," even if it doesn't boast the same horsepower as training-focused systems.
This strategic focus on simplifying AI for practical business applications could prove to be a significant advantage for IBM in the evolving data center landscape.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
4 hours ago
- Time of India
Amid Air India probe, US FAA, Boeing notify fuel switch locks are safe, document, sources say
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The U.S. Federal Aviation Administration and Boeing have privately issued notifications that the fuel switch locks on Boeing planes are safe, a document seen by Reuters showed and four sources with knowledge of the matter FAA's Continued Airworthiness Notification on July 11 came after a preliminary report on Friday into last month's Boeing 787-8 crash, which killed 260 people, raised questions over engine fuel cutoff FAA's notification to Civil Aviation Authorities, seen by Reuters, said: "although the fuel control switch design, including the locking feature, is similar on various Boeing airplane models, the FAA does not consider this issue to be an unsafe condition that would warrant an Airworthiness Directive on any Boeing airplane models, including the Model 787."When asked for comment, the FAA said it did not have anything to add beyond the also referred to FAA's notification in a Multi-Operator-Message sent to the airlines in the past few days, which said the planemaker is not recommending any action, two of the sources with direct knowledge asked for comment, Boeing referred Reuters' questions to the preliminary investigation report into the crash by India's Aircraft Accident Investigation Bureau (AAIB), referred to a 2018 FAA advisory, which recommended, but did not mandate, operators of several Boeing models, including the 787, to inspect the locking feature of the fuel cutoff switches to ensure it could not be moved report said Air India had said it had not carried out the FAA's suggested inspections as the FAA 2018 advisory was not a report noted "all applicable airworthiness directives and alert service bulletins were complied on the aircraft as well as engines."ALPA India, which represents Indian pilots at the Montreal-based International Federation of Air Line Pilots' Associations, in a statement on Saturday rejected the presumption of pilot error and called for on a "fair, fact-based inquiry.""The pilots body must now be made part of the probe, at least as observers," ALPA India President Sam Thomas told Reuters on India, in a letter posted on X, said the preliminary investigation report referred to the 2018 FAA advisory "concerning the fuel control switch gates, which indicates a potential equipment malfunction."In the flight's final moments, one pilot was heard on the cockpit voice recorder asking the other why he cut off the fuel. "The other pilot responded that he did not do so," the report said fuel switches had almost simultaneously flipped from run to cutoff just after takeoff. The report did not say how the switches could have flipped during the U.S. safety experts said on Saturday they backed ALPA India's request to be observers in the probe, but said the investigation report did not suggest a bias toward pilot Cox, a pilot and former ALPA representative, said AAIB's report seemed objective and fair.
Indian Express
5 hours ago
- Indian Express
White House's Hassett says Trump's latest tariffs ‘are real' unless trade talks yield better offers
US President Donald Trump will move forward with new tariffs on countries including Mexico, the European Union and Brazil if trade talks do not lead to better offers, White House Economic Adviser Kevin Hassett said on Sunday. 'These tariffs are real if the President doesn't get a deal that he thinks is good enough,' Hassett told ABC's This Week program, Reuters quoted. 'Conversations are ongoing, and we'll see where the dust settles,' he added. Hassett also spoke about Trump's plan for a 50 per cent tariff on imports from Brazil, saying it showed the President's dissatisfaction with how Brazil has handled trade discussions. 'The President is frustrated with Brazil's actions and the direction of the talks,' Reuters quoted. Earlier this week, Brazilian President Luiz Inácio Lula da Silva threatened to impose retaliatory tariffs on US imports if President Trump follows through on his pledge to raise levies. 'If there's no negotiation, the reciprocity law will be put to work. If he charges 50 from us, we will charge 50 from them,' Lula had told TV Record in an interview preview aired Thursday. 'Respect is good. I like to offer mine and I like to receive it.'
Mint
5 hours ago
- Mint
Wall St Week Ahead-Earnings, inflation data confront resilient US stocks rally
(Repeats SCHEDULED COLUMN originally published on July 11, no changes) US stock investors shrug off Trump's latest tariff plans Analysts pared forecasts for profits in June quarter Earnings coming up from big US banks, Netflix, 3M, J&J US consumer price data due Tuesday, retail sales Thursday NEW YORK, July 11 (Reuters) - A rally that has taken U.S. stocks to record highs will be tested in the coming week by the kick-off of corporate earnings season and a key inflation report as investors hope to learn more about the economic fallout from tariffs. The S&P 500 is little changed so far this week, but the benchmark stock index has surged 26% since April to all-time high levels. Stocks this week largely shrugged off President Donald Trump's threats of more aggressive tariffs on over 20 countries set to take effect August 1. Trump also announced plans for higher levies on copper, pharmaceuticals and semiconductors. "Investors are looking toward the end of the year into next year where fundamentals are better, and they are willing to look through some short-term uncertainty as they get there," said Chris Fasciano, chief market strategist at Commonwealth Financial Network. After a strong first-quarter reporting season helped lift stocks, analyst estimates for second-quarter results have weakened. S&P 500 companies are expected to have increased profits by 5.8% from the year-earlier period, down from an expectation of a 10.2% gain on April 1, according to LSEG IBES. The percentage of S&P 500 companies beating consensus estimates rose to 78% in the first quarter after the rate had declined the prior three quarters, Ned Davis Research analysts said. "Another reading in the upper 70s would suggest that companies have a grasp not only on tariffs, but also on the broader macro environment," the Ned Davis analysts said in a note. Reports from banks will dominate the week, including results from JPMorgan Chase, Bank of America and Goldman Sachs. Among the other major companies reporting next week are Netflix, Johnson & Johnson and 3M . In focus will be whether executives indicate if they are able to forecast and make decisions in areas such as capital investment and hiring despite the still-shifting trade backdrop, Fasciano said. "The uncertainty hasn't gone away, but I'm curious to see how much of the uncertainty they feel they have a better understanding of in terms of longer-term plans," Fasciano said. The impact of tariffs will also be at issue with the consumer price index for June, due on Tuesday, which will shed light on inflation trends. CPI is expected to increase 0.3% on a monthly basis, an acceleration from the prior month, according to economists polled by Reuters. A busy week of economic data will also be highlighted by monthly retail sales on Thursday. Investors are eager for the Federal Reserve to resume interest rate cuts, but central bank officials have cited worries that tariffs will drive inflation higher as reasons for holding off on changing monetary policy. The S&P 500 is up nearly 7% in 2025, just over halfway through the year. In the latest sign of positive stock momentum, Nvidia Corp this week became the first publicly traded company to hit $4 trillion in market value, fueled by a massive run for AI chipmaker's stock price. Stocks have rebounded after plunging in April following Trump's "Liberation Day" announcement of sweeping global tariffs. This past Wednesday was expected to be a key deadline, marking the end of Trump's pause on many of the harsh "reciprocal" tariffs he unveiled in April. This week, he launched an array of levies, many scheduled to take effect on August 1. Still, most investors appear to be banking on the U.S. avoiding higher tariff rates as Washington strikes deals in coming weeks with trading partners such as Japan and South Korea, said Anthony Saglimbene, chief market strategist at Ameriprise Financial. "That's what the market has built in," Saglimbene said. "If we don't get that, then I think there is probably some risk that we would see some higher near-term volatility if the White House actually implements some of these aggressive tariff measures." text_section_type="notes">Wall St Week Ahead runs every Friday. For the daily stock market report, please click (Reporting by Lewis Krauskopf; Editing by Alden Bentley and David Gregorio)
