Keysight and Alibaba Surge with AI Demand, Amazon's Data Center Boom

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In this edition of Silicon Brief, we're diving into the dynamic world of AI chips and data centers, where significant investments and strategic partnerships are shaping the future of technology infrastructure. Keysight Technologies Inc has exceeded its financial forecasts, thanks to the surging demand from AI data centers, while Penzance has started constructing a new hyperscale data center in Virginia for Amazon Web Services. Meanwhile, Amazon itself is making a substantial $15 billion investment in Indiana to bolster its data center capabilities.

Across the Atlantic, the UK Government has designated South Wales as an AI Growth Zone, aiming to foster innovation with a £10 billion investment. In Asia, Alibaba has reported a remarkable 34% increase in cloud sales, driven by AI demand. On the technological front, Meta Platforms is in talks with Google to incorporate Google's chips into its data centers by 2027, potentially reshaping the semiconductor landscape. These developments highlight the pivotal role of AI in driving global data center expansion and technological advancement.

Keysight Technologies Exceeds Forecasts Due to AI Demand

Keysight Technologies Inc has reported higher-than-expected quarterly revenue and profit, driven by strong demand from AI data centers. The company forecasts first-quarter revenue well above analysts' estimates. Read more

Penzance Begins Construction on AWS Data Center in Virginia

Penzance has commenced building a 240,000 sq ft hyperscale data center in Chantilly, Northern Virginia, to be operated by Amazon Web Services. The project targets completion by mid-2027 and aims for LEED-Data Center Silver certification. Read more

Amazon's $15 Billion Investment in Indiana Data Centers

Amazon plans to invest $15 billion in Northern Indiana to build new data center campuses, creating 1,100 high-skilled jobs and enhancing AI and cloud computing capabilities. Read more

Cornelis Networks Launches 800 Gb/s CN6000 SuperNIC

Cornelis Networks has introduced the CN6000 SuperNIC, an 800 Gb/s Ethernet adapter aimed at enhancing AI and high-performance computing networking. This device doubles the performance of its predecessor and targets bottlenecks in large GPU clusters. Read more

UK Government Announces South Wales as AI Growth Zone

The UK Government has designated South Wales as the fourth AI Growth Zone, aiming to boost data center development with a £10 billion investment and create over 5,000 jobs by the early 2030s. Read more

Alibaba Cloud Sales Surge 34% Due to AI Demand

Alibaba has reported a 34% increase in cloud computing revenue for its fiscal second quarter, driven by strong demand for AI products. The company's shares rose as it plans to further invest in AI. Read more

HPE Secures $931M Contract for DISA Data Center Modernization

Hewlett Packard Enterprise has been awarded a $931 million contract by the US Defense Information Systems Agency to modernize its data centers. The initiative will utilize HPE's GreenLake platform to implement a hybrid multi-cloud solution over the next decade. Read more

Meta to Invest in Google's Chips for Data Centers

Meta Platforms is in discussions with Google to invest billions in Google's chips for its data centers, starting in 2027. This could make Google a competitor to Nvidia in the semiconductor market. Read more

CoreWeave Starts $1.8 Billion Data Center in New Jersey

CoreWeave has begun building a $1.8 billion data center in Kenilworth, New Jersey, with support from a $250 million tax credit from the New Jersey Economic Development Authority. The facility is set to address the increasing need for AI computing power and is slated to be operational by early 2027. Read more

xAI Plans Solar Farm Near Memphis Data Center

xAI intends to build a solar farm next to its Colossus data center in Memphis, aiming to generate 30 megawatts of electricity. This move follows scrutiny over the company's unpermitted natural gas turbines. Read more

GlobalFoundries Acquires AMF and InfiniLink

GlobalFoundries has acquired Advanced Micro Foundry and InfiniLink to boost its capabilities in silicon photonics and AI datacenters. Read more

Aramco and Pasqal Launch Saudi Arabia's First Quantum Computer

In a major technological step, Aramco and Pasqal have introduced Saudi Arabia's first quantum computer focused on industrial use, aiming to boost efficiency and quantum application development in various sectors. Read more

Digital Connexion to Invest in AI Data Centres in India

Digital Connexion, a joint venture involving Reliance Industries, Brookfield, and Digital Realty, plans to invest Rs 98,000 crore in AI-native data centres in Visakhapatnam, Andhra Pradesh by 2030. Read more

ADLINK Unveils NXP i.MX 95 Modules for IoT

ADLINK Technology Inc. has launched new modules featuring the NXP i.MX 95 processor, targeting industries like aerospace and automotive. These modules are designed for high performance and security in industrial and IoT applications. Read more

Banks to Lend $38 Billion for OpenAI Sites

A consortium of banks is in discussions to provide $38 billion in funding for the development of new sites for OpenAI, in partnership with Oracle and Vantage, as reported by the Financial Times. Read more

Michael Burry Criticizes Nvidia Over AI Stock Practices

Investor Michael Burry has raised concerns about Nvidia's stock practices and the sustainability of the AI market. His criticisms have led to a public dispute with Palantir CEO Alex Karp and a response from Nvidia defending its position. Read more

Amazon's Global Data Center Count Surpasses 900

Documents indicate that Amazon.com Inc now operates over 900 data centers worldwide, reflecting its efforts to support the increasing demand for AI-driven computing through its cloud unit, Amazon Web Services (AWS). Read more

Ecolab Introduces Cooling Service for Data Centers

Ecolab Inc. has launched a Cooling as a Service program to enhance cooling management in data centers, integrating advanced technologies to meet AI-driven industry demands. Read more

Adani Group Plans $5 Billion Investment in Google Data Center

India's Adani Group is planning a significant investment in a data center project with Google, aiming to enhance data capacity in India as part of a larger AI initiative. Read more

Microsoft Loses AI Infrastructure Leaders

Microsoft has lost two key leaders in its AI infrastructure, Nidhi Chappell and Sean James, amid challenges in expanding data center capacity for AI services. Read more

Etix Opens Fourth Edge Data Center in Lille for AI

Etix has launched its fourth Edge data center in Lille, France, offering 2MW of capacity for AI workloads. This expansion was announced at the Choose France summit. Read more

CloudExtel Secures ₹200 Crore for AI Infrastructure

CloudExtel has raised ₹200 crore in debt to enhance AI-ready infrastructure and expand its metro fibre network in India, starting with the Data Centre Interconnect initiative in Mumbai. Read more

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Keysight and Alibaba Surge with AI Demand, Amazon's Data Center Boom - Silicon Brief #46

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