Hewlett Packard Enterprise, led by CEO Antonio Neri, has partnered with Nvidia to offer generative AI systems for large corporate clients. Neri highlighted HPE’s supercomputer heritage and experience in running AI systems at scale. The company aims to help clients fine-tune AI models with their data in a secure private cloud setting. While AI server sales have boosted HPE’s stock, concerns about margins persist in the competitive server market. HPE’s liquid cooling expertise and service offerings could help maintain margins. The company’s partnership with Nvidia is expected to accelerate the industrial revolution of generative AI. However, doubts linger about sustained AI server demand and potential distractions from the Juniper Networks acquisition. Neri sees Juniper as integral to HPE’s hybrid cloud strategy, covering silicon, software, infrastructure, and services. HPE has the opportunity to prove itself to investors in the AI hardware market amid growing competition.
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https://www.morningstar.com/news/marketwatch/20240618146/hp-enterprise-may-be-an-underrated-ai-play-and-new-deal-with-nvidia-could-help
