Reading through $AI’s buisness model and they list HPE as a key partner in their hyper scale cloud and infrastructure partner network. May allude to something. Wondering if there’s any details on how that implementation is going, what’s the focus, and whether it’s going to create a new revenue stream or reduce margins? Any help here is appreciated
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Seems largely be a value add partnership that embeds the C3 AI capabilities prepackaged into Intel chips for IoT devices and specifically HPE enterprise servers that are utilized for Azure web stacks. That may not be super bullish as Azure sales have been down if I’m not completely off my rocker. But considering that Microsoft has a partnership with AI as well that may lead to a complete package type sale between the 3 companies which would be a big bonus for long term ownership of cloud assets. Considering that these AI models are generally going to be very specific or have access to lots of business critical data, assets, and systems I could see how businesses may want to just own the whole hardware stack instead of deploying these AI use cases on something like GCP where they don’t own the assets. These changes and implementations of AI are not a “trend” or “viral” use case. They’re going to have profound long term impacts on how these businesses function, analyze, and execute. Having this complete mega package of 2 super established and trusted US companies (MSFT and HPE) may actually be a strong enough value challenge to the current cloud market players (amzn and Goog) not sure if anyone can supplement this train of thought but it seems to have legs, and may point to an interesting ER considering NVDA sold tons of data center equipment which would suggest those enterprise cards got dropped into assets more than likely owned by the businesses themselves. I’m sure a good portion went to cloud providers like amzn and Goog but there’s likely a large amount that went into azure stacks that may have already been established.
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They also haven’t seen any level of the AI correlated movement and may be a big sleeper in this space. Think we found the one for next week. Diverting from AI this weekend to this now
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Last ER they blew it out of the water and raised guidance. Including their summary infographic:
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Wow wtf they barely moved at all too. Wonder what the hell gives….
Right? I’m trying to find something. The only thing I’m finding as a “great concern” is their debt, but nothing crazy.
Avg. Price Target for them is roughly $17.19, which is a couple dollars over where they are right now.
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Also reading this article now:
Seems they are grabbing cash for something <:pepehmm:923445815589097503>
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They are definitely making moves into the AI sector though, having acquired several companies since 2018 that were developing AI tech. There current CEO seems very focused on AI innovation, and mentioned share buybacks last ER.
Hmmm that’s likely tied to Microns issues in China but also yes they will have a lot of cash to use for something as well. Could be reinvesting it into a big partnership with MSFT. They have bowed out of the cloud provider space but possibly may be looking to enter somewhere there with like AI model hosting services?
I wouldn’t be surprised that all the MSFT services they’re rolling out for O365 and Azure are likely tied to some HPE hardware. Which would signal that last QTR was the “things are changing” and this one being the “here’s the surprise”….
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With Nvidia’s recent ER it’s definitely a shit or get off the pot moment. So they could announce some big stuff to put their name solidly in the race and considering they haven’t caught a lot of this AI movement could make for a big surprise. I’m definitely gonna be playing this <:kekw:923797443471081503>
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I agree. I know they had a partnership with NVDA for the Swiss Supercenter a couple years back for a new Supercomputer that was specifically mentioned with AI use-case, but I haven’t heard anything recent on that. Was supposed to be up and running this year apparently:
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I am certainly looking to get into this one now, even if it just goes up a couple dollars, I can live with that 
Yeah the contracts are dirt cheap and with it notnot getting much movement or attention it’s probably a surprise lagger for all this
Its been a bit since HPE did much, is the reasoning here that they have collected some money and are looing to invest in AI? Or that their enterprise computers are going to see sales growth for AI hardware? I have not heard anything about HPE being involved with AI. That would for sure be a reason for growth if there is a reason to think they are.
Earnings is after close on Tuesday, giving only one day to get your positions in order. I may join this play, partly because I’ve only been doing theta for a while and feeling bored, but mostly because I agree with the analysis here!
They’ve had a partnership with $AI since 2018 actually. I posted the article further up
From the article I posted above:
“Ahmed Mosharafa, head of machine learning engineering at Machine Learning Reply, which is part of Italian IT services behemoth Reply with $1.3 billion in sales in euros and 13,000 employees, said he is looking forward to seeing how HPE uses the cash especially given the acquisitions that have set HPE up for success in the AI market with HPE Ezmeral.”
“Among the acquisitions HPE has made in the AI market besides MapR are BlueData in 2018, the $1.4 billion acquisition of Cray in 2019, Scytale in 2020 and Ampool in 2021.”