Due to the increasing impact of AI, corporations such as Meta have redirected their attention to crafting AI servers as a strategic move to leverage the excitement surrounding this technology. The launch of the AI Research SuperCluster, which was introduced by the business a year ago and uses NVIDIA’s A100 GPUs, is a good illustration of this. Meta wants to include GenAI into its popular social networking platform, so it is currently moving forward with obtaining cutting-edge technology to do this.
According to industry insiders, Meta officials visited the SK Hynix Icheon facility to examine the HBM and DDR5 memory divisions. Additionally, Meta expressed interest in the procedure by conducting a quality test for DDR5 memory modules. Meta is already a trusted partner of SK Hynix and specialises in server storage solutions. However, Meta is now focusing on acquiring DDR5 memory supplies due to the current excitement around AI. Unluckily, the corporation is up against a formidable obstacle in the form of an “unbalanced” supply chain.
According to reports, SK Hynix expressed concern over Meta’s request for DDR5 memory, stating that the company was experiencing order backlogs as a result of the overwhelming demand. This is certainly clear given that every other GenAI competitor is working feverishly to obtain the equipment required to run current-generation datacenters, of which DDR5 memory is a major component.
In addition to Meta, it is revealed that NVIDIA also has plans to visit the SK Hynix facilities shortly to talk about the next-generation “HBM3e” memory for forthcoming AI GPUs. Due mostly to their importance in AI GPUs, especially the NVIDIA H100s, the HBM market is currently experiencing economic growth. The HBM3e memory was previously sampled by NVIDIA, and based on appearances, it is prepared for incorporation into next-generation AI products.
Given that Team Green intends to produce in large quantities, suppliers may need to reduce output in order to keep up with the enormous demand. NVIDIA wants to ship 1.5 million to 2 million H100s in 2024 and is searching for a reliable supply chain and, possibly, a way out of the present order backlog.
The AI growth is a lifeline for suppliers like SK Hynix, pulling the business out of precarious financial circumstances. Since the beginning of the year, the Korean powerhouse has experienced financial difficulties, and the business has “bet” its future on the hoopla around artificial intelligence. Given that it presently controls 80% of the global HBM market, the company may generate enormous amounts of income in the ensuing quarters.
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