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Dell Technologies is forecasting lower profit margins for its fiscal year 2026, citing increased costs associated with the rising demand for AI servers.

According to reports, Apple is collaborating with chip giant Broadcom to develop a custom server processor specifically designed to support AI services and features in its operating systems. This project is codenamed 'Baltra' and is expected to enter production in 2026. Currently, there are relatively few details about this project. At this year's developer conference, Apple's Senior Vice President of Software Engineering Craig Federighi stated that Apple's intelligent technology would run simultaneously on local devices and private cloud servers, which would be provided by Apple.

According to reports, Microsoft will spend nearly $10 billion renting servers from AI startup CoreWeave between 2023 and 2030. This amount accounts for more than half of the total $17 billion contract signed between CoreWeave and its customers. Neither CoreWeave nor Microsoft responded immediately to requests for comment. Previously, it was reported that CoreWeave is preparing for an initial public offering (IPO) in 2025. The company recently secured a $650 million credit line from several investment banks.

Reports indicate that OpenAI is in discussions with Broadcom and other chip design companies to jointly develop a new type of AI server chip. This initiative, led by OpenAI CEO Sam Altman, aims to enhance the company's computing power for AI development. The project is seen as a response by OpenAI to address the current shortage of graphics processing units (GPUs) required for AI model development, which are primarily supplied by Nvidia.Image source note: The image was generated by AI, and the a

ZTE is increasing its investment in research and development for AI server-related products and solutions. The company has launched the AI servers R5300 G5, R6500 G5, and R6900 G5, continuously optimizing performance to strive for a greater market share.

["Dell predicts earnings for fiscal year 2025 will exceed expectations, primarily due to the growing demand for AI servers.", "AI servers equipped with Nvidia graphics processing units are experiencing a surge in orders.", "The personal computer market is recovering, and there is an optimistic long-term outlook due to AI."]

Dell's revenue for Q4 of Fiscal Year 2024 reached $22.3 billion, a 25% year-over-year increase, with total revenue for the year at $88.4 billion. Operating income stood at $5.2 billion, and cash dividends were raised by 20% to $1.78 per share. The Infrastructure Solutions Group reported Q4 revenue of $9.3 billion, with server and networking business generating $4.9 billion. The Client Solutions Group achieved Q4 revenue of $11.7 billion, with the commercial customer segment contributing $9.6 billion. Dell maintains an optimistic outlook for Fiscal Year 2025.

Apple is expected to spend $4.75 billion to purchase over 20,000 servers to support artificial intelligence technology. Apple aims to carve out a new territory in the field of generative AI. The global server shipment volume is estimated to be around 13.654 million units, with the market still focusing on the deployment of AI servers. Companies like Foxconn, Quanta, and Supermicro have performed well in AI server orders.

Estimated global server shipment growth of 2.05% in 2024, with AI servers making up approximately 12.1%.

Ming-Chi Kuo expects Apple to invest $4.75 billion in purchasing AI servers in 2024. He believes that Apple will use these servers to train its self-developed AI models to enhance security. Apple is set to purchase AI servers equipped with Nvidia chips. Kuo notes that Apple's investments in AI still lag behind those of Microsoft, Meta, and others. He expresses concerns that Apple will need to continue making substantial investments in its AI business in the future.

ZTE has launched the latest AI server that supports large model training aimed at the training and inference needs of small to medium-sized models. ZTE has introduced the G5 series servers and plans to release the latest AI server supporting large model training this year.

🔥 Server Market Size: In the first half of 2023, the accelerated server market reached $3.1 billion, reflecting a year-on-year growth of 54%. IDC predicts that by 2027, the accelerated server market size in China will reach $16.4 billion. 📈 Dominance of GPU Market: GPU servers hold an 88% market share, amounting to $3 billion. Non-GPU accelerated servers, with a year-on-year growth rate of 17%, occupy 8% of the market share, reaching $200 million. 🌱 Development of Domestic Chips: The gap in computing power faced by the Chinese market, influenced by supply chain factors, has provided opportunities for domestic development.

In the first half of 2023, China's accelerated server market size significantly increased by 54% compared to the same period last year, reaching 3.1 billion USD. GPU servers continue to dominate with an 88% market share, but domestic AI chips are also developing rapidly. Domestic chips still need further development in technology and ecosystem construction to achieve in-depth cooperation between industry, academia, and research. By 2027, the market size of China's accelerated server market is expected to reach 16.4 billion USD.

Foxconn has successfully secured a large order for Nvidia's HGX server AI chipboards. Foxconn has become the largest chipboard supplier for Nvidia, a leader in the global AI chip sector. In the second half of the year, Foxconn will see three important business growth points, leading to a significant increase in performance.