Latest news with #B200
Business Insider
3 hours ago
- Business
- Business Insider
Super Micro Computer (SMCI) Stock Jumps 10% on Exclusive AI Server Deal and Trade Shift
Super Micro Computer (SMCI) shares rose 10.2% on Monday, to close at $60.05. The jump followed news of a new strategic partnership and reports of softened trade enforcement between the United States and China. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. AI Partnership and Trade Pause Boost Server Outlook Digi Power X announced that Super Micro Computer will be the exclusive server supplier for its new ARMS 200 modular data center platform. The platform is designed to support up to 256 Nvidia (NVDA) B200 or B300 GPUs per pod, with each pod offering one megawatt of compute capacity. Digi Power X plans to deploy the system at its Alabama site, scaling to 40 megawatts in total. That would support around 10,240 Nvidia GPUs. The initial rollout is planned for the fourth quarter of 2025, with a full launch expected in early 2026. The deal highlights Super Micro Computer's position in the AI server infrastructure market. The company has built its product line around modular designs through its Data Center Building Block Solutions strategy. The ARMS 200 integration aligns with that approach and expands the company's reach into high-density GPU workloads. The stock also benefited from reports that the U.S. Department of Commerce may delay enforcement of export rules aimed at China. Several news outlets cited current and former officials who said the pause is part of a broader effort to keep trade channels open. Easing trade risk supports hardware and semiconductor firms that serve global customers. Super Micro Computer, which has exposure to Asia, may benefit if current restrictions stay limited through the next quarter. SMCI is set to report fiscal fourth-quarter earnings on August 5. Analysts forecast earnings of $0.45 per share, down 30.2% from last year. Revenue is expected to rise 12.8% year-over-year to $5.99 billion. The stock is up nearly 100% year-to-date and has gained 112% over the past six months. Nvidia and Vertiv Also Stand to Benefit Nvidia and Vertiv Holdings (VRT) also stand to gain from rising demand for modular AI data centers. Nvidia supplies the GPUs, and Vertiv Holdings provides thermal and power systems used in high-density builds. All three names are linked by the growing need for AI-ready infrastructure. Is SMCI Stock a Good Buy? an average SMCI stock price target of $42.85. This implies a 28.64% downside.
Gizmodo
14 hours ago
- Business
- Gizmodo
The U.S. May Change Strategy in Its Battle With China for AI Dominance
This weekend, Shanghai was host to China's annual 'World Artificial Intelligence Conference,' a government-organized AI showcase packed with tech giants from both China and the U.S. including Huawei, Tesla, and Amazon. The theme was 'Global Solidarity in the AI Era,' and Chinese Premier Li Qiang opened the conference with a sweeping proposal: the establishment of a global AI cooperation organization, potentially headquartered in Shanghai. The Chinese foreign ministry has since released an action plan calling for international collaboration in AI through open-source communities and joint research. While China's AI messaging is starting to sound like 'AI for all,' the United States is still split on its own battle tactic. The Trump administration has welded an isolationist trade approach globally, and particularly with China when it comes to AI and technology. But with recent policy changes, that hardline has seemed to soften as Washington is split between two camps on how to approach the battle for AI dominance with China: that is, whether to continue with a heavily protectionist approach or join China's calls for solidarity. Beijing's invitation to rally behind a Chinese vision of AI cooperation landed in the middle of a tense year in AI geopolitics. The United States has been the global leader in AI development, but domestic confidence in America's competitive edge was shaken earlier this year. Following the meteoric success of Chinese AI company Deepseek's low-cost yet high-performance model, the Trump administration took a hard line on advanced technology exports to China. The administration attempted to slam the brakes on Beijing's hardware access by further tightening existing export controls on advanced Nvidia chips to China, in an effort to curb the country's rapid innovation, starve its AI ecosystem, and preserve U.S. dominance. But the ban hasn't gone exactly to plan. A Financial Times report from last week revealed that roughly $1 billion worth of Nvidia's banned advanced B200 chips had been smuggled into China in the three months since the export controls went into effect. The administration changed course on the ban and quietly retreated from its hard-line stance earlier this month, when Nvidia CEO Jensen Huang announced that the company would resume selling its older H20 chips legally to China. Notably, the FT found that Chinese black market demand for the smuggled B200s faced a noticeable drop after the relaxation of the H20 ban, suggesting that Chinese companies would rather take legal access to older chips over the highest technology illegally (companies who buy smuggled chips can't take advantage of important Nvidia customer support when installing them in their own data centers). The implications of this finding could throw the logic of blanket export bans into question. China isn't proposing global solidarity in AI development out of the goodness of its heart. Open cooperation and joint research not only helps the development of AI technology in China, but it is also a soft power play by China. By centering this cooperation in Shanghai and under Chinese terms and values, Beijing is trying to cement its position in the global AI trade, potentially achieving global AI dominance over the U.S. But Trump has made it clear that he wants America to win that battle. 'America is the country that started the AI race, and as President of the United States, I'm here to declare that America is going to win it,' Trump said while announcing the measures last week. The U.S. government's fears are twofold when it comes to AI and China: losing economic edge and jeopardizing national security. Currently, the Chinese AI industry is dependent on American chipmakers like Nvidia. Skeptics of blanket export bans say that if China has no access to advanced American AI technology, it will have no choice but to develop its own. And if China builds a true rival to Nvidia and gains self-sufficiency in AI hardware, the U.S. may lose its grip on the global AI market. At the center of these concerns is Chinese tech giant Huawei, which is already developing AI computing systems that rival Nvidia's most advanced products. Advocates of this approach in Washington hope to have more control over the scale of innovation in China by flooding the market with American products. And especially by controlling what chips go into the country, the U.S. could help curb the proliferation of more advanced chip technology in China. The Trump administration's recent move to ease restrictions on older Nvidia chip models could be following this logic, and might be bearing its fruits already, at least according to the Financial Times' findings. It's two steps forward and one step back. Although the U.S. has seemed to relax the rules on chip exports into China, the Trump administration is eager to continue the government's hard line based on the President's AI Action Plan that was unveiled last week. 'Advanced AI compute is essential to the AI era, enabling both economic dynamism and novel military capabilities,' the administration wrote in the action plan. 'Denying our foreign adversaries access to this resource, then, is a matter of both geostrategic competition and national security. Therefore, we should pursue creative approaches to export control enforcement.' Proponents of stricter export controls have sizable national security concerns when it comes to China's AI development. Chinese AI companies proved that you don't need the latest hardware to make AI that outperforms benchmarks, with the release of both Deepseek and Alibaba-backed Kimi K2 this year. Even though newer chips are kept out of China while the older ones dominate chip sales, that does not necessarily mean that state-of-the-art AI models that rival or even exceed American ones can't be developed. Going even beyond just market competition, these models could pose security risks when deployed for use in the Chinese military. While China and the U.S. are not in direct military conflict, tensions are high between the two superpowers, particularly over China's territorial claims in Taiwan and the South China Sea and American involvement in the region. All of this comes as U.S. and China trade envoys are meeting in Stockholm this week to discuss what exactly the long game is here. The countries are expected to decide on a tariff agreement or opt for yet another extension of the previously granted truce that is set to expire on August 12. The outcome of these talks, no matter what, is likely to have implications going even beyond what's stated on paper. It could very well set the stage for the next phase of the war over global AI dominance.
Yahoo
16 hours ago
- Business
- Yahoo
Super Micro Soars As China Rules Ease Riding AI Wave
Super Micro Computer (NASDAQ:SMCI) shot up 10.2% to $60.05 on Monday after Digi Power X tapped it as the exclusive supplier for its ARMS 200 modular data centersand word came that the U.S. might ease some export rules on China. Warning! GuruFocus has detected 7 Warning Signs with SMCI. Under the deal, SMCI will pack each 1 MW pod with up to 256 Nvidia (NVDA) B200 or B300 GPUs, and Digi Power X plans to scale to 40 MW (about 10,240 GPUs) at its Alabama site, kicking off in Q4 2025 and wrapping in early 2026. I t's a big win for SMCI's Data Center Building Block strategy, which leans into flexible, high?density AI workloads. Add in reports the Commerce Department could pause certain China export curbs and you've got a perfect recipe for an order?flow boost next quarter. SMCI heads into its August 5 earnings with analysts looking for $0.45 EPS (down 30% Y/Y) on $5.99 B revenue (up 12.8%). This article first appeared on GuruFocus. 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
Time of India
5 days ago
- Business
- Time of India
Flying suitcases packed with hard drives to China: Nvidia responds to 'burning issue' of AI chip smuggling
Nvidia has issued a strong warning against the use of unauthorised chips in data centers, calling it a 'losing proposition' both technically and economically. The statement from the world's most valuable company comes in the wake of a recent report which alleged that at least $1 billion worth of Nvidia's AI chips have been illegally smuggled into China. Not only that, last month a report said that Chinese companies are resorting to 'unconventional' ways, including carrying hard drives with AI training data in suitcases to other countries, to bypass US restrictions on high-end AI chips. 'Trying to cobble together datacenters from smuggled products is a losing proposition, both technically and economically. Datacenters require service and support, which we provide only to authorised NVIDIA products,' an Nvidia spokesperson told CNBC. A Financial Times report detailed that these illicit shipments of Nvidia's AI chips entered China despite President Donald Trump's restrictions on the sale of the company's H20 chips to the world's second-largest economy. Furthermore, the report, citing sales contracts, company filings, and informed sources, stated that Nvidia's B200 chips, which are also prohibited from sale in China, have become popular on the black market. Chinese distributors reportedly began selling these restricted chips in May to data center suppliers, whose clientele includes various Chinese AI groups. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like TV providers are furious: this gadget gives you access to all channels Techno Mag Learn More Undo How China is smuggling US-made high-end AI chips Since 2022, stringent US export controls on high-end AI chips, driven by national security concerns, have significantly impacted Chinese firms' access to cutting-edge American technology. This has forced them to explore various workarounds, from developing domestic alternatives to engaging in illicit activities like smuggling, and increasingly, processing data in overseas locations. According to a report by the Wall Street Journal, while some Chinese companies have begun substituting American chips with domestically produced alternatives, others have resorted to smuggling AI hardware through third countries to circumvent the controls. However, increased pressure from the US has made smuggling a more difficult proposition. This has pushed Chinese firms towards a new strategy: processing data outside of China in regions like Southeast Asia and the Middle East. "This was something we were consistently concerned about," Thea Kendler, former head of export controls at the Commerce Department under the Biden administration, told the WSJ, referring to the remote access Chinese firms maintain to US AI chips. Chinese companies using AI infrastructure in other South Asian countries to train AI models The WSJ report says that Chinese companies employed elaborate strategies to circumvent stringent US restrictions on advanced AI chips. For example, in one instance in March, four Chinese engineers reportedly flew from Beijing to Malaysia, each carrying suitcases filled with 15 hard drives containing 80 terabytes of data. At a Malaysian data centre, they utilised approximately 300 servers equipped with advanced Nvidia chips to develop an AI model, which they subsequently brought back to China. This operation involved planning, including weeks spent optimising data sets in China to avoid lengthy online transfers. 7 Reasons that make Samsung GALAXY Z FLIP7 different from others AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
5 days ago
- Business
- Time of India
CEO Sundar Pichai on Google Cloud's OpenAI partnership: 'With respect to OpenAI, look...'
CEO has said that he is 'excited' about a new partnership that sees the search giant supplying cloud computing resources to Microsoft-backed , one of its competitors in the artificial intelligence (AI) space. Tired of too many ads? go ad free now The comments came during Google's second-quarter earnings call, where Pichai addressed analyst questions about the company's aggressive AI investments after reporting strong results in Alphabet's first quarter 2025. 'With respect to OpenAI, look, we are very excited to be partnering with them on Google Cloud ,' Pichai stated. 'So super excited about our partnership there on the cloud side, and we look forward to investing more in that relationship and growing that,' he added. Pichai emphasised that Google Cloud operates as an 'open platform' with a history of supporting innovative companies, startups, and AI labs. Pichai highlighted Google Cloud's success in securing deals with several prominent AI labs, including Anthropic, Safe Superintelligence – the AI startup by OpenAI co-founder Ilya Sutskever, and Fei-Fei Li's World Labs. He attributed this success to Google's robust supply of both Nvidia GPU chips and its proprietary in-house TPU chips, essential for training and serving large AI models. 'Our strong relationship with NVIDIA continues to be a key advantage for us and our customers. We were the first cloud provider to offer NVIDIA's groundbreaking B200 and GB200 Blackwell GPUs, and will be offering their next-generation Vera Rubin GPUs,' he added. OpenAI's partnership with Google Cloud Earlier this month, OpenAI quietly updated its public list of cloud computing suppliers to include Google Cloud, alongside existing partners Microsoft and Oracle. Tired of too many ads? go ad free now This followed a report by news agency Reuters in June, indicating OpenAI was exploring tapping Google Cloud for additional computational power. The partnership arrives as Google intensifies its focus on developing leading AI models and products. Despite ChatGPT posing a competitive threat to Google's core Search business, the deal brings a new customer for Google Cloud which has seen a strong growth in the recent quarters. The division's revenue soared by 28% to $12.3 billion in the first quarter. Google attributes a substantial portion of this growth to the Google Cloud Platform and other products catering to AI companies.
