Artificial Intelligence
KBR Announces Strong Second Quarter 2022 Financial Results
KBR, Inc. (NYSE: KBR) today announced its second quarter 2022 financial results and updated its FY 2022 financial guidance.
“Building on strong momentum in attractive end markets, we continue to make excellent progress toward KBR’s 2025 long-term targets,” said Stuart Bradie, President and CEO of KBR. “Themes that favor our capabilities and technologies – national security, defense modernization, global energy security and climate change – continue to be at the forefront of priorities. Combined with the unwavering commitment of our team of teams to deliver on our clients’ missions, I am pleased to report that the company posted another outstanding quarter of superb safety results, earnings growth, cash generation and strategic program awards.”
Bradie also announced KBR continues to prioritize enhancing its position in attractive, differentiated end markets with high barriers to entry through a combination of investments and acquisitions.
“During the quarter, we continued to shape our portfolio and deployed capital in a strategic, accretive, balanced manner,” Bradie said. “Our acquisition of VIMA Group, a leading UK company specializing in digital transformation for clients in the defense sector, advances our growing platform of high-end consulting, engineering and advisory services in the international defense market. Furthermore, the expansion of our investment in Mura Technology, a UK-based pioneer in circular plastics recycling technology, strengthens the alliance between our companies and places KBR at the center of enabling a global plastics circular economy. We welcome our new colleagues and partners into the KBR family and are excited about the opportunities to shape the future together.”
Summarized Second Quarter 2022 Financial Results
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||
|
Dollars in millions, except share data |
2022 |
2021* |
2022 |
2021* |
|||
|
Revenues |
$ 1,616 |
$ 1,536 |
$ 3,330 |
$ 2,997 |
|||
|
Gross profit |
$ 201 |
$ 207 |
397 |
375 |
|||
|
Net income (loss) attributable to KBR |
$ 94 |
$ (149) |
$ 23 |
$ (100) |
|||
|
Adjusted EBITDA1 |
$ 186 |
$ 156 |
$ 340 |
$ 291 |
|||
|
Earnings (loss) per share: |
|||||||
|
Diluted earnings (loss) per share |
$ 0.61 |
$ (1.06) |
$ 0.17 |
$ (0.71) |
|||
|
Adjusted earnings per share1 |
$ 0.76 |
$ 0.58 |
$ 1.38 |
$ 1.06 |
|||
|
Cash flows: |
|||||||
|
Operating cash flows |
$ 125 |
$ 104 |
$ 214 |
$ 154 |
|||
|
Adjusted operating cash flows1 |
$ 125 |
$ 108 |
$ 214 |
$ 165 |
|||
|
Adjusted free cash flows1 |
$ 112 |
$ 98 |
$ 195 |
$ 149 |
|||
|
Deployable free cash flows1 |
$ 344 |
$ 98 |
$ 445 |
$ 149 |
|||
*As adjusted for the adoption of ASU 2020-06 using the full retrospective method
Financial highlights for the quarter ended June 30, 2022
- Revenue of $1.6 billion grew 5% compared to the same period in 2021 primarily attributable to increased activity in 2022 in the European Command related to the war in Ukraine as well as the acquisition of Frazer-Nash Consultancy in October 2021, partially offset by activity in 2021 related to our exit from Middle East contingency operations.
- KBR net income attributable to KBR, diluted earnings per share, adj. EBITDA1 and adj. EPS1 increased in line with revenue as well as the following.
- Net income attributable to KBR was $94 million and $23 million for the three- and six-month periods ended June 30, 2022, respectively, and diluted earnings per share was $0.61 and $0.17 for the three- and six-month periods ended June 30, 2022, respectively. Adj. EBITDA1 was $186 million and adj. EBITDA1 margins were 12% in Q2 2022.
- Government Solutions (GS) delivered excellent earnings and adj. EBITDA1 margins of 12% in Q2 2022.
- GS earnings continue to benefit from favorable international mix, strong project execution, excellent customer performance scores in challenging technical areas that reflect high client satisfaction, core revenue growth and favorable project closeouts.
- GS earnings were favorably impacted by the sale of selected non-core assets for which we received $42 million in proceeds and recorded $22 million in gains on assets sales that elevated margins by ~165 bps in Q2 2022.
- Sustainable Technology Solutions (STS) delivered excellent earnings and adj. EBITDA1 margins of 18% in Q2 2022.
- STS earnings reflect strong end markets, superior technology offerings, and highly sought-after engineering solutions.
- STS earnings were enhanced by the acceleration of certain project close-outs and other timing items that elevated margins by ~160 bps in Q2 2022.
- STS earnings in Q2 2021 were favorably impacted by a net favorable $16 million benefit associated with the settlement of a subcontractor dispute.
- In connection with KBR’s expanded investment in Mura Technology announced in Q2 2022 and other observable third-party transactions, we stepped up the carrying value of our original 5% investment made in 2021 to its fair market value and recorded a $16 million unrealized gain on investment. Consistent with the company’s practice, this amount has been excluded from adj. EBITDA1 and adj. EPS1.
- In connection with our announced exit from commercial activities in Russia, we recorded a predominantly non-cash, pretax charge of $12 million in Q2 2022. We have excluded the impact of this item from adj. EBITDA1 and adj. EPS1.
- In connection with settlement negotiations between KBR’s JKC joint venture and its client in 2021, KBR recorded a $193 million charge for its proportionate share of unfunded client change orders and claims in Q2 2021. In October 2021, KBR announced that JKC entered into a binding settlement agreement that resolved outstanding claims and disputes, an important de-risking event that reduced future uncertainty. Consistent with the company’s practice, this amount has been excluded from adj. EBITDA1 and adj. EPS1.
- During Q2 2022, KBR received approximately $190 million in connection with the settlement of a subcontractor matter. These proceeds are reflected in cash flows from investing activities.
Recent Developments and New Business
In the quarter ended June 30, 2022, the company delivered book-to-bill2 of 2.1x and recorded $2.9 billion of awards and options, including the following:
- A new $69 million ceiling, five-year best value takeaway to provide research and development for airborne manned reconnaissance aircraft intelligence, surveillance, reconnaissance, and targeting systems for Naval Surface Warfare Center Crane; services include systems engineering, technology improvements, integration, test & evaluation, and training.
- A $95 million, five-year expanded recompete win to develop tools to manage maintenance data, monitor trends, and conduct prognostic analysis using DEVSECOPS to improve readiness of naval aircraft. This award is double the predecessor contract.
- A $1.5 billion award that represents KBR’s proportionate share of its non-majority joint venture KZJV’s notice to proceed with Phase 1 of Plaquemines LNG for Venture Global LNG, inclusive of KBR services to be provided to KZJV. KZJV will integrate highly modularized, owner-furnished equipment for the 13.33 million tonnes per annum nameplate facility. KBR’s role in the joint venture is project management, engineering, program integration and interface management, and commissioning support under an innovative commercial structure that enhances overall program alignment between KZJV and its client. Consistent with our backlog policy, we have recorded our proportionate share of KZJV’s estimated backlog into KBR’s backlog. As this project is predominantly accounted for as an equity method investment, our proportionate share of the joint venture’s future earnings will be recorded in Equity in earnings of unconsolidated affiliates.
- As announced in Q1 2022, a $640 million ceiling Ground Systems and Mission Operations contract to support more than 10 NASA exploration missions, including continued efforts on the James Webb Space Telescope, Lunar Reconnaissance Orbiter and Earth Observing System. KBR will provide systems engineering, launch and early orbit support, flight operations, and flight dynamics support to various NASA missions managed by Space Science Mission Operations and Earth Science Mission Operations at NASA’s Goddard Space Flight Center. This highly strategic and technical win represents KBR’s largest recompete in 2022.
Capital Deployment
KBR continues to employ a balanced approach to capital allocation, which includes investments that facilitate sustainable, long-term growth and prudent return of capital to shareholders. In the quarter ended June 30, 2022, the company generated $344 million of deployable free cash, which included strong quarterly operating cash flows, planned capital expenditures, and the receipt of proceeds from the sale of non-core assets and subcontractor settlements.
- Today, the company completed its acquisition of VIMA Group, a leading UK digital transformation company serving defense clients, for an agreed-upon purchase price of approximately $73 million funded from cash on hand, subject to certain working capital and other closing adjustments, $5 million of deferred consideration and potential additional cash payments aggregating up to approximately $12 million, contingent upon the achievement of certain performance targets. VIMA Group delivers solutions across a number of large-scale, high-priority digital transformation programs to support its clients in ensuring availability of effective digital and information technology as guided by the UK’s Digital Strategy for Defence. VIMA Group is a trusted advisor and a top five supplier to Defence Digital and Navy Digital – both organizations within the UK Ministry of Defence with a number of highly strategic, fast-growing programs. The VIMA Group acquisition is KBR’s third acquisition announced in the UK over the past year and enhances the company’s platform of high-end consulting, engineering and advisory services in this growing defense market. In July 2021, KBR acquired Harmonic Ltd and in October 2021, Frazer-Nash Consultancy.
- In June 2022, we announced an expansion of our investment in Mura Technology, a UK-based pioneer in circular plastics recycling technology. This investment builds on an alliance KBR and Mura entered into in early 2021 whereby KBR became the exclusive licensing partner for Mura’s innovative, proprietary, closed-loop plastics recycling technology powered by super critical water. Not only does this incremental investment increase KBR’s potential ownership percentage in Mura from ~5% to ~18.5%, but it also expands the suite of professional services KBR will deliver to Mura-led projects (e.g., advisory, engineering, project management services).
- In the first half of 2022, KBR returned capital to shareholders through the repurchase of $74 million of its common shares, inclusive of share repurchases to satisfy requirements of equity compensation plans and paid $32 million in shareholder dividends.
FY 2022 Guidance
KBR combines deep mission understanding, market-leading expertise and technology, and unwavering operational focus to deliver solutions that help solve our clients’ most complex issues. Our 2022 financial guidance is underpinned by favorable market tailwinds, good bookings momentum, a strong first half, and work under contract of over 90% to deliver our 2022 results.
KBR updates its FY 2022 guidance as follows:
- Consolidated revenue: $6.4 billion to $6.8 billion;
- Adjusted EBITDA1 margin: ~10%;
- Effective tax rate: 24% to 25%;
- GAAP earnings per share (EPS): $1.09 to $1.21 (updated) and adjusted EPS1: $2.53 to $2.65;
- Increasing GAAP EPS guidance to reflect the impact of the appreciation in fair value of our investment in Mura Technology of $16 million, $0.09 per share. Consistent with the company’s practice, this amount has been excluded from adj. EPS;
- Decreasing GAAP EPS guidance to reflect the impact of a $12 million charge recorded in Q2 2022 associated with our announced exit from commercial activities in Russia; and
- GAAP operating cash flow (OCF): $330 million to $370 million; adjusted OCF1: $360 million to $400 million.
Conference Call Details
The company will host a conference call to discuss its second quarter 2022 financial results and updated guidance on Tuesday, August 2, 2022, at 7:30 a.m. Central Daylight Time. The conference call will be webcast simultaneously through the Investor Relations section of KBR’s website at investors.kbr.com. A replay of the webcast will be available shortly after the call on KBR’s website or by telephone at +1.929.458.6194, passcode: 662918.
Artificial Intelligence
UK Data Center Market to Reach Investment of $10.13 Billion by 2029, Get Insights on 200 Existing Data Centers and 40 Upcoming Facilities across the UK – Arizton
CHICAGO, April 16, 2024 /PRNewswire/ — According to Arizton’s latest research report, the UK data center market is growing at a CAGR of 2.37% during 2023-2029.
To Know More, Download the Free Sample Report: https://www.arizton.com/market-reports/uk-data-center-market-investment-analysis
The UK Data Center Market Report Scope
Report Scope
Details
Market Size (Investment)
USD 10.13 Billion (2029)
Market Size (Area)
955 Thousand Sq. Feet (2029)
Market Size (Power Capacity)
183 MW (2029)
CAGR: Investment (2023-2029)
2.37 %
Colocation Market Size (Revenue)
USD 5 Billion (2029)
Historic Year
2020-2022
Base Year
2023
Forecast Year
2024-2029
The UK data center market is poised for substantial growth, largely propelled by the expanding presence of Artificial Intelligence (AI) technologies across industries. Projections suggest that by 2040, an estimated one million businesses throughout the UK will have integrated AI-driven solutions into their operations. According to the Global Innovation Index 2023, the UK was ranked fourth out of 211 countries.
Key Insights
The growth of the UK data center market is fueled by investments from colocation data center operators including key players such as Equinix, VIRTUS Data Centres, Digital Realty, and Ark Data CentresMajor cloud service providers, such as AWS, Microsoft, and Google, are actively expanding their data center infrastructure in the UK. Investments and expansion initiatives by these providers align with the growing demand for cloud services.Countries including Manchester, Berkshire, and West Sussex are witnessing investments in data center facilities. Sustainability efforts such as the use of hydrotreated vegetable oil (HVO) by Datum Datacentres are prevalent across counties.The UK government has launched initiatives such as the Wireless Infrastructure Strategy, which is aiming to increase wireless network connectivity by 2030. The Digital Strategy, launched by the UK government, outlines a holistic approach to digital policy across critical domains, emphasizing the country’s commitment to digital technology.Investment Opportunities
Within the Western European region, the UK represents approximately 20% of the total data center investments. This can be attributed to the growing internet penetration and the extensive adoption of cloud-based services across various sectors within the country.The significance of the UK in submarine cable connectivity is underscored by its 56 submarine cables, linking the country to key regions such as the US, Europe, Africa, the Middle East, and Asia. The notable submarine cables include Apollo, BT-MT-1, Circe South, ESAT-1, Europe India Gateway, and NO-UK. The upcoming submarine cables, namely 2Africa, Amitie, and BT North Sea, are poised to strengthen the UK’s global connectivity further.The strategic rollout of 5G network connectivity is a key focus in the UK, spearheaded by major telecom operators, including EE, Vodafone, Ericsson, Three UK, and O2. Complementing these efforts, the UK government has initiated projects such as 5G Logistics, 5G Ports, Smart Junctions 5G, AMC2, 5G CAL, 5G Factory of The Future, and 5GEM-UK.In May 2023, Kao Data unveiled its plans to construct a 40 MW data center in Manchester’s Kenwood Point for a projected investment of $440 million; the facility is set to go live in late 2025. The strategic move into Manchester aligns with Kao Data’s commitment to advancing the region’s computing capabilities and supporting the aspirations of the UK government.In April 2023, Equinix planned to develop a 30 MW data center facility in Slough Trading Estate in Berkshire, outside London. It is a five-story building with two data halls on each floor.In April 2023, Vantage Data Centers announced the development of a second data center campus, LHR2, in West London, with an investment of around $310 million. The LHR1 data center campus, with a total area of 40,000 square feet and two 24 MW multi-story data centers, is expected to be online by 2024.To Know More, Click: https://www.arizton.com/market-reports/uk-data-center-market-investment-analysis
Existing VS Upcoming Data Centers
Existing Facilities in the Region (Area and Power Capacity)
Greater LondonBerkshireGreater ManchesterOther CountiesList of Upcoming Facilities in the Region (Area and Power Capacity)
Why Should You Buy this Research?
Market size is available in the investment, area, power capacity, and UK colocation market revenue.An assessment of the data center investment in the UK by colocation and enterprise operators.Investments in the area (square feet) and power capacity (MW) across locations in the country.A detailed study of the existing UK data center market landscape, an in-depth market analysis, and insightful predictions about market size during the forecast period.Snapshot of existing and upcoming third-party data center facilities in the UKFacilities Covered (Existing): 200Facilities Identified (Upcoming): 40Coverage: 30+ LocationsExisting vs. Upcoming (Area)Existing vs. Upcoming (IT Load Capacity)Data Center Colocation Market in the UKMarket Revenue & Forecast (2023-2029)Retail & Wholesale Colocation PricingThe UK data center market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.A transparent research methodology and the analysis of the demand and supply aspects of the industry.The Report Includes the Investment in the Following Areas:
IT InfrastructureServersStorage SystemsNetwork InfrastructureElectrical InfrastructureUPS SystemsGeneratorsTransfer Switches & SwitchgearsPDUsOther Electrical InfrastructureMechanical InfrastructureCooling SystemsRacksOther Mechanical InfrastructureCooling SystemsCRAC & CRAH UnitsChiller UnitsCooling Towers, Condensers & Dry CoolersEconomizers & Evaporative CoolersOther Cooling UnitsGeneral ConstructionCore & Shell DevelopmentInstallation & Commissioning ServicesEngineering & Building DesignFire Detection & Suppression SystemsPhysical SecurityData Center Infrastructure Management (DCIM)Tier StandardTier I & Tier IITier IIITier IVGeographyGreater LondonOther CountiesVendor Landscape
IT Infrastructure Providers
Arista NetworksAtosBroadcomCisco SystemsDell TechnologiesFujitsuHewlett Packard EnterpriseHuawei TechnologiesIBMJuniper NetworksLenovoNetAppData Center Construction Contractors & Sub-Contractors
2bmAECOMArupARC:MCAtkinsBladeRoom Data CentresBouygues ConstructionDeernsFuture-techHDR ArchitectureINFINITIISGJCA EngineeringKirby Engineering GroupKMG PartnershipMaceMercury EngineeringMiCiMstudioNWAOakmont ConstructionSweet ProjectsREDSPIE UKSkanskaSTO Building GroupSudlowsTTSPWaldeckSupport Infrastructure Providers
ABBAiredale International Air ConditioningCaterpillarCumminsDelta ElectronicsEatonKohler SDMOLegrandMitsubishi ElectricPiller Power SystemsRolls RoyceRiello Elettronica (Riello UPS)RittalSchneider ElectricSocomecSiemensSTULZVertivData Center Investors
Amazon Web Services (AWS)Ark Data CentresChina Mobile International (CMI)Colt Data Centre ServicesCustodian Data CentresCyrusOneCyxtera TechnologiesCorscale Data CentersDigital RealtyData DatacentresEquinixEchelon Data CentresGlobal SwitchIron MountainIonosInfinity SDCKeppel Data CentresKao DataNTT Global Data CentersLumen TechnologiesMicrosoftProximity Data CentresServerfarmSungard Availability ServicesTelehouseVantage Data CentersVirtus Data Centres (ST Telemedia Global Data Centres)YondrNew Entrants
CloudHQDigital ReefEdgeCore Digital InfrastructureGoogleGlobal Technical RealtyStratus DC ManagementKey Questions Answered in the Report
What is the growth rate of the UK data center market?
What are the driving factors for the UK data center market?
How much is the UK data center market investment expected to grow?
Who are the new entrants in the UK data center market?
How many data centers have been identified in the UK?
Get the Detailed TOC @ https://www.arizton.com/market-reports/uk-data-center-market-investment-analysis
Check Out Some of the Top Selling Reports:
Belgium Data Center Market – Investment Analysis & Growth Opportunities 2023-2028
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Greece Data Center Market – Investment Analysis & Growth Opportunities 2024-2029
France Data Center Market – Investment Analysis & Growth Opportunities 2023-2028
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Artificial Intelligence
GEP NAMED ‘LEADER’ IN MULTIPLE GLOBAL PROCUREMENT SERVICES REPORTS BY TOP ANALYST FOR FOURTH YEAR IN A ROW
ISG cites GEP CONSULTING and GEP SERVICES for their ability to address complex categories in sourcing and spend management, and continued success in global engagementsCements GEP as the ideal global partner for transforming procurement, supply chain and business operationsCLARK, N.J., April 16, 2024 /PRNewswire/ — GEP®, a leading provider of AI-powered procurement and supply chain software, strategy, and managed services to Fortune 500 and Global 2000 enterprises worldwide, announced today that it has been named a Leader in the ISG Provider Lens™ – Procurement Services 2024 – Global, for the fourth year in a row. GEP is named a leader in all three categories:
Procurement Operations Modernization ServicesStrategic Sourcing and Category Management ServicesDirect Procurement Enablement and Modernization ServicesDownload a complimentary copy of each of these reports, which evaluates providers of transformation services, and the software platforms and tools enterprises use to transform procurement here.
GEP’s chief marketing officer Al Girardi, explained “At a time when business is transforming procurement to mitigate inflation and global uncertainty, GEP’s ability to integrate consulting, managed services and software makes us the ideal strategic partner for companies in driving competitive advantage, resilience, cost savings and shareholder value. GEP is the only firm globally that provides end-to-end procurement and supply chain strategy, managed services and technology solutions under one umbrella, providing a one-handshake solution for clients.”
Direct Procurement Enablement and Modernization Services
According to the ISG Provider Lens lead analyst Bruce Guptill, “GEP’s leadership builds on its ability to address complex and varying client needs and modernize direct procurement operations integrated with finance, supply chain and other associated disciplines.”
ISG Provider Lens™ cites GEP strengths in Procurement Operations Modernization Services as:Full modernization and optimization portfolio.Extensive partner network to enable, deliver and support procurement and supply chain improvement beyond the abilities of many other providers.AI-powered GEP QUANTUM low-code, cloud-native development platform for efficient integration and data exchange across procurement- and supply chain-related applications. ISG Provider Lens™ cites GEP strengths in Strategic Sourcing and Category Management Services as:Strategic sourcing and category management offerings.Robust software foundation. Deep pool of software and service partners. ISG Provider Lens™ cites GEP strengths in Direct Procurement and Modernization as:Substantial expertise and experience in direct sourcing.Software platforms including the AI-powered GEP SMART™ platform (S2P), GEP NEXXE for supply chain management, GEP GREEN™ for ESG tracking and reporting, and QUANTUM platform for AI-driven automation, analytics and low-code development.Nontraditional partnerships for direct sourcing presence.About ISG Provider Lens™ Research The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG’s global advisory team. The research currently covers providers offering their services globally, across Europe and Latin America, as well as in the U.S., Germany, Switzerland, the U.K., France, the Nordics, Brazil and Australia/New Zealand, with additional markets to be added in the future. For more information about ISG Provider Lens™ research, please visit this webpage. ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm with more than 700 clients, including more than 75 of the world’s top 100 enterprises. For more information, visit www.isg-one.com.
About GEPGEP® delivers AI-powered procurement and supply chain solutions that help global enterprises become more agile and resilient, operate more efficiently and effectively, gain competitive advantage, boost profitability and increase shareholder value. Fresh thinking, innovative products, unrivaled domain expertise, smart, passionate people — this is how GEP SOFTWARE™, GEP STRATEGY™ and GEP MANAGED SERVICES™ together deliver procurement and supply chain solutions of unprecedented scale, power and effectiveness. Our customers are the world’s best companies, including more than 550 Fortune 500 and Global 2000 industry leaders who rely on GEP to meet ambitious strategic, financial and operational goals. A leader in multiple Gartner Magic Quadrants, GEP’s cloud-native software and digital business platforms consistently win awards and recognition from industry analysts, research firms and media outlets, including Gartner, Forrester, IDC, ISG, and Spend Matters. GEP is also regularly ranked a top procurement and supply chain consulting and strategy firm, and a leading managed services provider by ALM, Everest Group, NelsonHall, IDC, ISG and HFS, among others. Headquartered in Clark, New Jersey, GEP has offices and operations centers across Europe, Asia, Africa and the Americas. To learn more, visit http://www.gep.com/.
GEP Media Contact Derek CreeveyPhone: +1 732-382-6565Email: [email protected]
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Equity Insider Commentary
VANCOUVER, BC, April 16, 2024 /PRNewswire/ — EQUITY INSIDER – Data centers are at the core of what’s powering the ongoing artificial intelligence (AI) boom. With almost every major industry shifting towards AI, massive amounts of new infrastructure will still be needed, in particular data centers. The Data Center Equipment Market is exploding, with analysts at Straits Research projecting it to surpass $164 billion by 2031, growing at a whopping 13.2% CAGR along the way. According to Technavio, 38% of growth in the Data Center Rack PDU Market growth will originate from North America, while surging data center demand is pushing the limits of available workers. Among the innovators helping to bring the AI revolution to life are a mix of innovators, including Avant Technologies Inc. (OTC:AVAI), NVIDIA Corporation (NASDAQ:NVDA) (NEO:NVDA), Intel Corporation (NASDAQ:INTC), Advanced Micro Devices, Inc. (NASDAQ:AMD) (NEO:AMD), and Amazon.com, Inc. (NASDAQ:AMZN) (NEO:AMZN).
AI tech developer, Avant Technologies Inc. (OTC: AVAI) specializes in the development of advanced AI and data center infrastructure solutions. Recently, the company announced that development on its next-generation, AI-driven resource allocation system is now fully underway. This news follows Avant’s February 2024 announcement of its decision to begin enhancing its sophisticated machine and deep learning AI system, Avant AI™, with automated data center resource management for its new high-density compute data center infrastructure. The company’s management team has expressed great satisfaction with the rapid progress made since the announcement.
This new Avant AI™ innovative initiative seeks to harness the power of AI to improve resource use, boost performance, and give businesses unmatched flexibility in their data center operations.
“We are excited about the quick development being made on our groundbreaking AI for intelligent data center management,” said Timothy Lantz, CEO of Avant. “These latest innovations will help our customers unlock new levels of performance and efficiency in their data center operations and achieve success in today’s digital era. We anticipate that Avant’s AI infrastructure solutions will directly boost our clients’ bottom lines and provide a significant competitive advantage in the marketplace.”
Avant AI™ analyzes data in real-time to foresee future resource requirements, automatically assigns resources, and adjusts to fluctuating workloads. Its multi-layered architecture maintains data quality and reliability as it converts AI suggestions into practical actions. Avant AI™ helps businesses by reducing resource waste, lessening performance delays, speeding up resource expansion, and automating resource distribution, which altogether enhances operational efficiency.
“The demands placed on data centers are constantly evolving,” said Danny Rittman, Chief Information Officer of Avant. “Traditional static provisioning and manual configuration methods struggle to keep pace with dynamic workloads and ever-increasing resource needs. Our AI-driven resource allocation system represents a paradigm shift, promising to revolutionize data center management.”
It’s easy to witness the growth of data centers by looking at leading chipmaker NVIDIA Corporation (NASDAQ: NVDA) (NEO: NVDA), which has seen its Data Center business explode by more than 400% since last year to $18.4 billion in Q4 2024, as reported in its Q4 and FY 2024 results. Key to the growth has been the surging demand for NVIDIA’s H100 graphics cards that are widely used to power generative AI apps such as OpenAI’s ChatGPT.
“Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations,” said Jensen Huang, founder and CEO of NVIDIA. “Our Data Center platform is powered by increasingly diverse drivers — demand for data processing, training and inference from large cloud-service providers and GPU-specialized ones, as well as from enterprise software and consumer internet companies. Vertical industries — led by auto, financial services and healthcare — are now at a multibillion-dollar level.”
Back in mid-December 2023, NVIDIA’s competitor Intel Corporation (NASDAQ:INTC) unveiled its own new data center chip with a focus on AI growth. The company would go on to follow this up by announcing Gaudi 3 availability to original equipment manufacturers (OEMs), including with Dell Technologies, HPE, Lenovo, and Supermicro, serving to broaden Intel’s AI data center market offerings for enterprises.
“Innovation is advancing at an unprecedented pace, all enabled by silicon – and every company is quickly becoming an AI company,” said Pat Gelsinger CEO of Intel. “Intel is bringing AI everywhere across the enterprise, from the PC to the data center to the edge. Our latest Gaudi, Xeon and Core Ultra platforms are delivering a cohesive set of flexible solutions tailored to meet the changing needs of our customers and partners and capitalize on the immense opportunities ahead.”
Companies are aiming to expand their GenAI projects from initial trials to full-scale production. To achieve this, they require accessible solutions based on powerful, cost-effective, and energy-efficient processors, such as the Intel Gaudi 3 AI accelerator. These solutions must also tackle challenges like complexity, fragmentation, data security, and compliance needs.
Not to be left out, Advanced Micro Devices, Inc. (NASDAQ: AMD) (NEO: AMD) also made adjustments back in December 2023, by introducing new AI and Data Center products, including its Instinct MI300X Series accelerator to deliver robust performance for HPC and AI workloads. The MI300X launch was seen as a move that could help the chipmaker to better compete with Nvidia amid the AI boom. Then by early April 2024, AMD announced the expansion of its AMD VersalTM adaptive system on chip (SoC) portfolio, with its newer Versal AI Edge Series Gen 2 and Versal Prime Series Gen 2 adaptive SoCs, which bring preprocessing, AI interference, and postprocessing together in a single device for end-to-end acceleration of AI-driven embedded systems.
“The demand for AI-enabled embedded applications is exploding and driving the need for single-chip solutions for the most efficient end-to-end acceleration within the power and area constraints of embedded systems,” said Salil Raje, senior vice president and general manager, Adaptive and Embedded Computing Group, AMD. “Backed by over 40 years of adaptive computing leadership, these latest generation Versal devices bring together multiple compute engines on a single architecture offering high compute efficiency and performance with scalability from the low-end to high-end.”
As of late March 2024, online giant Amazon.com, Inc. (NASDAQ: AMZN) (NEO: AMZN) appears to be going all in on AI-driven data centers, with a $150 billion investment to retain its cloud computing edge over competitors like Microsoft and Google. The biggest headline grabbing element of the giant investment is that one of the largest nuclear power plants in the USA will directly power new Amazon Web Services (AWS) data center. As of the announcement, Amazon’s cloud computing subsidiary was being used by upwards of 1.45 million businesses, according to an internal report.
“We’re expanding capacity quite significantly,” said Kevin Miller, a vice president at AWS. “I think that just gives us the ability to get closer to customers.”
The announcement came within a couple weeks of an announcement by Amazon it would be extending its collaboration between AWS and NVIDIA to advance Generative AI innovation. Included in the extension, the duo plan to integrate Elastic Fabric Adapter (EFA) for petabit-scale networking and Amazon Elastic Compute Cloud (Amazon EC2) UltraCluster for hyper-scale clustering.
“The deep collaboration between our two organizations goes back more than 13 years, when together we launched the world’s first GPU cloud instance on AWS, and today we offer the widest range of NVIDIA GPU solutions for customers,” said Adam Selipsky, CEO at AWS. “Together, we continue to innovate to make AWS the best place to run NVIDIA GPUs in the cloud.”
Source: https://equity-insider.com/unlocking-the-trillion-dollar-ai-market-what-investors-need-to-know/
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