IBM & Oracle Boost AI with New Partnership, Skanska's $164M Data Center Deal, Samsung's AI Battery Tech - Silicon Brief #17

Hi there, In this edition of Silicon Brief, we're diving into the latest developments in AI chips and data centers. Fractile has developed a new AI inference chip that aims to compete with Nvidia, while SambaNova Systems is undergoing a strategic shift, resulting in the layoff of 77 employees. Meanwhile, Oregon State University has made strides in energy efficiency with their new AI chip designed to save energy. On the data center front, IBM and Oracle are expanding their AI and cloud partnership, and ValorC3 has announced a new data center in Boise. Additionally, Skanska has secured a $164 million contract for a data center project in the Western USA. These developments highlight the ongoing growth and innovation in the AI and data center sectors.

Constellation Energy is shifting its strategy to prioritize data center projects connected to the U.S. electrical grid. This move aligns with Big Tech's demand for reliable electricity to support AI expansion. Prometheus Hyperscale has teamed up with PureWest Energy and Frontier Carbon Solutions to power a 1.2GW data center in Wyoming using natural gas, with plans to offset emissions through carbon capture and carbon removal credits. London-based startup Zendo has raised £1.75 million in Pre-Seed funding to create an AI platform for optimizing energy use in data centres, led by Fly Ventures and others. Oklo has announced a leadership change with Sam Altman stepping down as Chairman, and Co-Founder and CEO Jacob DeWitte assuming the role. The company faces financial challenges despite a recent rise in share value.

Samsung SDI will unveil its latest battery technologies, including a UPS system and ESS batteries, at InterBattery Europe 2025 in Munich. These innovations are aimed at enhancing AI data center operations. Nortek DCC announced the launch of the C-Force™ lifecycle model and StatePoint® 2025 hybrid cooling system on May 8, 2025, to improve efficiency and sustainability in data centers. Research from Swinburne University of Technology suggests that optical microcombs could greatly improve bandwidth, potentially reaching speeds over one petabit per second, to meet the rising data demands of AI and data centers. Zilliz Cloud is enabling AI-first companies to achieve improved performance and cost efficiency with sub-10ms latency, benefiting companies like CX Genie, Beatoven.ai, Ivy.ai, Dopple.ai, and EviMed.

Advanced Micro Devices (AMD) predicts a $1.5 billion revenue impact in 2025 due to new U.S. restrictions on AI chip exports to China, while still forecasting strong overall revenue growth. Import tariffs are anticipated to raise costs for industrial data centers focused on AI development by billions annually, with U.S. importers facing significant tariff exposure. Leaders from Microsoft, OpenAI, CoreWeave, and AMD will testify before U.S. lawmakers to push for faster federal permitting for AI-related energy needs and better access to government data for AI training.

IBM and Oracle have expanded their partnership to integrate IBM's watsonx AI products with Oracle Cloud Infrastructure. ValorC3 Data Centers is set to build a new 10MW data center in Boise, Idaho, focusing on AI innovation. Skanska has secured a $164 million contract for a data center project in Western USA, scheduled to start in June 2025.

Fractile is developing an AI inference chip to compete with Nvidia's GPUs, targeting data center deployment by 2027. SambaNova Systems is laying off 77 employees as it shifts focus to inference services. Nozomi Networks has integrated NVIDIA BlueField DPUs to enhance AI-driven cybersecurity in critical infrastructure.