By by Jack Denton
Nvidia CEO Jensen Huang's opening-salvo pitch in the chip giant leader's keynote speech at GTC Berlin is modular, quickly-deployed data centers that would dramatically reduce the time until artificial-intelligence computing can take place. There are also key stocks set to benefit too.
"This will change the way people install and build data centers," Huang said, pitching Nvidia's new Vera Rubin DSX Pods.
"An AI factory can take several months to build. Until it is operational, it produces no tokens," Huang said, referring to the basic units of data processed by AI models. "We are announcing DSX Pod, bringing [our] full-stack platform into a factory-built, integrated system."
"DSX Pods are integrated, fully-cabled and factory tested, then delivered in transportable containers," said Huang. "Once site utilities are ready, estimated deployment goes from several months to days."
It's a data center quick-fix that could not only save billions of dollars -- but also benefit component stocks.
AI data centers can take months of assembly, with any delays being extremely costly.
"If we said it's $40 billion per year of revenue generation that comes out of that infrastructure ... if delayed by just three months that's $10 billion worth of revenue, [which] would make anyone anxious," Huang said.
The DSX Pods would essentially allow data centers under construction to begin operating using the shipping container-like modules, before eventually being hooked up to permanent infrastructure. It could bring data center construction from four to five months down to a month, Nvidia's CEO said.
Nvidia disclosed some of its partners involved in components for the DSX Pods -- stocks that, if the concept takes off, could be major winners.
Those partners include PC and server makers, namely Dell Technologies, Lenovo, and HPE, as well as contract manufacturers like Wistron. "Data center operators," such as Singapore's DayOne -- which has expressed an intent to go public via American Depositary Shares (ADSs) on the Nasdaq -- would also be included, as well as nuts-and-bolts power players like Schneider Electric.
Nvidia stock rose 2.3% on Wednesday.
Dell added 5%, with HPE up 3.8%. Lenovo shares traded 2.9% higher in Hong Kong before Huang's keynote, with Wistron advancing 3.2% in Taipei by the Asian close. Schneider Electric was rising 0.8% in French trading.
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