In an interview with CNBC, Foxconn’s chairman Young Liu pointed out that as advanced language models keep evolving, the investment in AI boom will continue as well. Liu suggested that the AI boom “still has some time to go,” as advanced language models like OpenAI continue to grow increasingly intelligent with each update.

He stated that the current trend in the technology industry is the development of AI that is as intelligent as humans, or even smarter. This type of AI is referred to as “AGI,” or “artificial general intelligence.”

Citing Liu’s remarks, the report noted that among the discussions about AGI and various levels of intelligence, the intelligence can be categorized into four levels. According to Liu, we are currently at level two, with levels three and four yet to be reached. Liu also noted that the advancement of AI towards greater intelligence will undoubtedly benefit the AI server industry and has been a significant driver of Foxconn’s growth this year.

Regarding the demand for NVIDIA’s new generation Blackwell GPU, Liu remarked that the chip demand was “far beyond our expectations.” He also mentioned that Foxconn is constructing a new factory in Mexico to meet this substantial demand. His comments align with those of NVIDIA CEO Jensen Huang, who has previously characterized the demand for Blackwell as “insane,” according to CNBC.

Despite concerns about potential yield issues with NVIDIA’s GB200, the company remains on schedule to deliver the chips by the fourth quarter of 2024, according to Liu. Foxconn, a key contract manufacturer for the GB200, expects substantial growth fueled by strong demand for AI servers.

Furthermore, Liu suggested that generative AI-related devices will be the next growth area, noting that the company is currently witnessing this trend in the cloud, where demand for generative AI cloud devices is exceptionally strong. In the next phase, the market will see further development of generative AI devices, according to Liu.

(Photo credit: Foxconn)

Supermicro, currently facing serious accounting fraud allegations, announced a comprehensive liquid cooling solution in its press release on October 7th. The company revealed that it is delivering over 100,000 GPUs equipped with this liquid cooling technology to some of the largest AI factories.

As per a report from CNBC, if the average price of the aforementioned GPU is similar to NVIDIA’s $30,000 chips, this order could potentially amount to several billion dollars.

According to Supermicro, this complete liquid solution includes “powerful Coolant Distribution Units (CDUs), cold plates, Coolant Distribution Manifolds (CDMs), cooling towers and end to end management software.” It is designed to reduce power costs and Day 0 hardware acquisition and data center cooling infrastructure costs.

However, CNBC also noted that while the announcement was well-received on Wall Street, Supermicro is approximately nine weeks late in submitting its annual report, which was originally due in August. Later that month, Supermicro stated that it required more time “to complete its assessment of the design and operating effectiveness of its internal controls over financial reporting as of June 30, 2024.”

On August 27, AI server giant Supermicro was accused of accounting violations, inadequate disclosure of related party transactions, and evading sanctions by selling products to Russia by Hindenburg Research.

The following day, Supermicro also announced a delay in submitting its 2024 fiscal year annual report. According to a report from Wccftech, Supermicro’s latest announcement might be an attempt to alleviate concerns resulted from its delayed annual report.

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• [News] Taiwanese Supply Chain to Benefit from Supermicro’s Order Withdrawal, with Dell and HP as Potential Beneficiaries
• [News] Supermicro Faces Order Withdrawal Crisis, Potentially Benefiting Dell

(Photo credit: Supermicro)

NVIDIA CEO Jensen Huang’s current personal worth has exceeded the entirety of Intel. According to reports from TechNews, Tom’s Hardware, Huang’s current net worth has reached USD 109.2 billion, more than Intel’s total market cap of around USD 96 billion.

In early August, Intel has faced its most serious financial troubles in 50 years, with its stock prices plummeting 22%. In order to attract foundry customers, the company will transform its foundry business into a wholly-owned subsidiary with its own board of directors.

According to Tom’s Hardware, social media users have been sharing posts encouraging Jensen Huang to buy Intel. Currently, Huang holds more than 75 million NVIDIA share, with 786 million more through various trusts and a partnership. Even though he has cashed in more than USD 700 million by selling 6 million shares this year, it is merely a tiny fraction compared with the total value of his NVIDIA holdings of over USD 100 billion.

According to Forbes’ real-time billionaires list, Huang’s net worth currently ranks 11th in the world, just USD 20 billion away from breaking into the top ten. With growth driven by the AI boom, NVIDIA has become one of the largest tech companies by market capital in the world, alongside Microsoft, Apple, Amazon, and Google.

According to TrendForce, NVIDIA continues to remain the dominant supplier in the global AI server market in 2024. Specifically, in the GPU AI server market, NVIDIA commands an overwhelming lead with a nearly 90% market share, while AMD follows at a distant 8%.

(Photo credit: NVIDIA)

Rumors have been circulating that NVIDIA has stopped taking orders for its H20 chips customized for China since August. Now, according to the latest report by Bloomberg, regulators in China have been advising companies against buying H20, as part of the country’s strategy to bolster its semiconductor industry and respond to further US sanctions.

As the initiative aims to boost the market share of domestic Chinese AI chip manufacturers, Huawei and Cambricon Technologies, which are leading AI processor makers in China, may turn out to be the major beneficiaries, Bloomberg suggests.

Beijing’s approach has been more of a guideline than a strict prohibition, as the authority still hopes to support its own AI startups, the report notes.

However, it is indicated that in recent months, several Chinese regulators, including the Ministry of Industry and Information Technology, did issue the so-called “window guidance”—informal instructions that lack legal authority—to minimize the use of NVIDIA.

It is worth noting that China has a thriving AI sector amid US restrictions. Major tech player like ByteDance and Alibaba are making significant investments, while numerous startups are vying for dominance. According to an earlier report by The Information, it is rumored that ByteDance has ordered over 200,000 NVIDIA H20 chips this year for AI model training, costing it over USD 2 billion.

In addition, there are six rising stars in the country’s development of large language models, which are crucial for generative AI, including 01.AI, Baichuan, Moonshot, MiniMax, Stepfun, and Zhipu, Bloomberg notes.

According to Bloomberg, some companies are disregarding the Chinese directive to avoid H20 chips, hastily acquiring more before a potential US sanction by the end of the year. However, they are also purchasing domestic Huawei chips to appease Beijing.

As early as in 2022, the US government prohibited NVIDIA from selling its most advanced AI processors to Chinese clients to curb Beijing’s technological progress. In response, the AI chip giant launched a series of AI chips tailored for the Chinese market, including H20, L20 and L2. According to a previous report by Wccftech, H20 GPU has 41% fewer Cores and 28% lower performance versus H100.

NVIDIA declined to comment to Bloomberg’s report, neither did China’s Ministry of Commerce, Ministry of Information and Technology, and Cyberspace Administration respond, Bloomberg notes.

In a separate statement, NVIDIA CEO Jensen Huang noted in an interview with Bloomberg Television that he is focused on serving customers in China while adhering to US government restrictions.

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• [News] Nvidia’s Custom H20 Chip for China Reportedly Halted

(Photo credit: NVIDIA)

As the U.S. and its allies continue to impose technology restrictions on China’s semiconductor sector, Beijing has accelerated its efforts to develop homegrown alternatives. Chinese firms are aggressively pursuing advanced AI chip development, aiming to rival Nvidia, the global leader in AI semiconductors. A recent CNBC report highlighted seven Chinese companies to watch, including Huawei and Alibaba.

Huawei, the first of Nvidia’s Chinese challengers, is gaining attention with its new Ascend 910C AI chip, which is expected to compete with Nvidia’s H100.

Alibaba follows closely behind. After acquiring C-Sky Microsystems in 2018, the company integrated it with its in-house chip division to form T-Head. In 2019, T-Head launched its first AI inference chip, the Hanguang 800, which has since been deployed at scale in Alibaba’s hyperscale data centers.

Baidu ranks third with its self-developed AI chip, Kunlun. The chip has matured significantly, and in June, Baidu received a strategic investment from Beijing’s AI Industry Investment Fund, marking the first time a state-owned entity has invested in an AI chip firm, boosting Baidu’s growth prospects.

Biren Technology, in fourth, focuses on GPUs like Nvidia, with a software platform to build applications on top of its hardware. Biren’s Bili series of chips are designed for AI training in data centers. Last week, Biren registered for IPO guidance with the Shanghai Securities Regulatory Bureau, marking the start of its public listing journey.

Cambricon Technologies, ranked fifth, designs a wide range of semiconductors, from chips that train AI models to those running AI applications on devices. Known as China’s first AI chip stock, Cambricon has faced setbacks since being blacklisted by the U.S. in late 2022, with reports of large-scale layoffs last year.

Moore Threads, founded in 2020, is developing GPUs for training large AI models. Its data center product, MTT KUAE, integrates GPUs and is aimed at competing with Nvidia.

Enflame Technology, the seventh company on the list, positions itself as a domestic alternative to Nvidia, focusing on AI training chips for data centers. Enflame began IPO guidance on August 26, and is expected to list on the STAR Market alongside Biren either by the end of this year or early next year.

(Photo credit: Huawei)