Elon Musk Launches Starlink Satellite Internet Service in Indonesia

Tesla and SpaceX's CEO Elon Musk pauses during an in-conversation event with British Prime Minister Rishi Sunak in London, Britain, Thursday, Nov. 2, 2023. (Reuters)
Tesla and SpaceX's CEO Elon Musk pauses during an in-conversation event with British Prime Minister Rishi Sunak in London, Britain, Thursday, Nov. 2, 2023. (Reuters)
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Elon Musk Launches Starlink Satellite Internet Service in Indonesia

Tesla and SpaceX's CEO Elon Musk pauses during an in-conversation event with British Prime Minister Rishi Sunak in London, Britain, Thursday, Nov. 2, 2023. (Reuters)
Tesla and SpaceX's CEO Elon Musk pauses during an in-conversation event with British Prime Minister Rishi Sunak in London, Britain, Thursday, Nov. 2, 2023. (Reuters)

Elon Musk traveled to Indonesia’s resort island of Bali on Sunday to launch Starlink satellite internet service in the world’s largest archipelago nation.

Wearing a green Batik shirt, Musk was greeted with a garland of flower petals at a community health clinic in Denpasar, the provincial capital of Bali, where he launched the Starlink service alongside Indonesian ministers, The AP reported.

Indonesia, a vast archipelago of 17,000 islands sprawled across three time zones with a population of more than 270 million, has been trying for years to secure deals with Musk's Tesla on battery investment and for Musk’s SpaceX to provide fast internet for the country’s remote regions.

During the ceremony, Musk took a speed test of the Starlink internet service with several health workers in Indonesia’s remote regions, including in Aru, one of Indonesia’s unserved and outermost islands in Maluku province.

“This can make it really a lifesaver for remote medical clinics, and I think it could be a possibility for education as well,” Musk told reporters.

“If you can access the internet and then you can learn anything and you can also sell your business services worldwide. So, I think it’s going to be incredibly beneficial," he said.

He also signed an agreement on enhancing connectivity in the country’s health and education sectors. Details about the agreement between the Indonesian government and Musk’s SpaceX, the aerospace company that operates Starlink services, were not provided.

Launching the service at a health clinic aligns with Starlink’s broader mission of providing affordable access to high-speed internet services, particularly in underserved and remote regions, said Coordinating Minister of Maritime and Investment Luhut Binsar Pandjaitan.

“Our remote regions need Starlink to expand high-speed internet services, especially to help with problems in the health, education and maritime sectors,” Pandjaitan, a close ally of Indonesia's President Joko Widodo, told reporters. He held separate talks with Musk on Sunday.

Communication and Informatics Minister Budi Arie Setiadi said earlier that local internet providers, which rely on base transceiver stations to transmit signals, are unable to reach outer islands because they have limited coverage. Starlink’s satellites, which remain in low orbit, will help them deliver faster internet with nationwide coverage.

Health Minister Budi Gunadi Sadikin said of the more than 10,000 clinics across the country, there are still around 2,700 without internet access.

“The internet can open up better access to health services as communication between regions is said to be easier, so that reporting from health service facilities can be done in real time or up to date,” he said.

During his first in-person visit to Bali, Musk is also scheduled to participate in the 10th World Water Forum, which seeks to address global water and sanitation challenges.

Musk spoke in 2022 at the B-20 business forum ahead of a summit of the Group of 20 leading economies that took place in Bali. He joined the conference by video link weeks after completing his heavily scrutinized takeover of Twitter.

Musk’s visit comes just weeks after Apple CEO Tim Cook met Widodo on April 17 and said the company would “look at” manufacturing in Indonesia. Microsoft CEO Satya Nadella visited on April 30 and said the company would invest $1.7 billion over the next four years in new cloud and artificial intelligence infrastructure in Indonesia.

Indonesia under Widodo has promoted development of the digital technology and information sectors, aiming to achieve the government’s Golden Indonesia 2045 Vision. The country hopes to become one of the world’s top five economies with a GDP of up to $9 trillion, exactly a century after it won independence from Dutch colonizers.



Dell Raises Forecasts as Demand Surges for Nvidia Powered AI Servers 

The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
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Dell Raises Forecasts as Demand Surges for Nvidia Powered AI Servers 

The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)

Dell Technologies raised its annual revenue and profit forecasts on Thursday, buoyed by demand for its AI-optimized servers that are powered by Nvidia's powerful chips, sending its shares up about 3% in extended trading.

Dell's infrastructure solutions group, which includes Nvidia-powered servers, surged 38% to a record revenue of $11.65 billion in the second quarter.

The company's servers are engineered to handle AI systems' intense computational demands, including training large language models.

"Enterprise remains a significant opportunity for us, as many are still in the early stages of AI adoption," Chief Operating Officer Jeff Clarke said in a post-earnings call.

Clarke said that Dell sees an emerging opportunity in "sovereign AI" by leveraging the company's strong relationships with governments globally.

Nvidia on Wednesday said nations building AI models in their own languages were turning to its chips, and that this would contribute about low double-digit billions to its revenue in the financial year ending in January 2025.

Nvidia CEO Jensen Huang called out the partnership with Dell earlier this year, saying they were helping businesses create their own "AI factories."

Dell's stock has risen 45% this year.

Dell said on Thursday it now expects annual revenue outlook to be between $95.5 billion and $98.5 billion, up from $93.5 billion and $97.5 billion previously. It also raised its annual adjusted profit per share forecast to $7.80, plus or minus 25 cents.

Demand for its AI-optimized servers rose about 23% sequentially to $3.2 billion in the second quarter. The backlog for these AI servers was $3.8 billion.

"Our pipeline has grown to several multiples of our backlog," Clarke said in a statement.

Revenue for the second quarter ended Aug. 2 rose about 9% to $25.03 billion, beating analysts' average estimate of $24.14 billion, according to LSEG data. It reported adjusted profit per share of $1.89 per share, compared with estimates of $1.71 per share.

While AI server demand soared, Dell's PC business struggled, losing market share to rivals. However, a strong refresh cycle for

AI PCs are expected next year after Microsoft ends support for Windows 10.

Revenue for the client solutions group - home to PCs - fell about 4% to $12.41 billion.

"Dell lost PC shipment shares in key markets in the second quarter. It is the top vendor in the US business market, but its competitors have shown growth and gained more shares than they did a year ago," said Mikako Kitagawa, director analyst at Gartner.

The company took a $328 million charge for workforce reductions in the second quarter.

Separately, Reuters exclusively reported earlier on Thursday that Dell is again exploring a possible sale of cybersecurity firm SecureWorks, following previous unsuccessful attempts to find a buyer.