Onsemi Aims to Improve AI Power Efficiency with Silicon Carbide Chips

Onsemi Aims to Improve AI Power Efficiency with Silicon Carbide Chips
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Onsemi Aims to Improve AI Power Efficiency with Silicon Carbide Chips

Onsemi Aims to Improve AI Power Efficiency with Silicon Carbide Chips

Onsemi on Wednesday unveiled a lineup of chips designed to make the data centers that power artificial intelligence services more energy efficient by borrowing a technology it already sells for electric vehicles.

Onsemi is one of a handful of suppliers of chips made of silicon carbide, an alternative to standard silicon that is more pricey to manufacture but more efficient at converting power from one form to another. In recent years, silicon carbide has found wide use in electric vehicles, where swapping out the chips between the vehicle's battery and motors can give cars a boost in range, Reuters reported.

Simon Keeton, president of the power solutions group at Onsemi, said that in a typical data center, electricity gets converted at least four times between when it enters the building and when it is ultimately used by a chip to do work. Over the course of those conversions, about 12% of the electricity is lost as heat, Keeton said.

"The companies that are actually using these things - the Amazons and the Googles and the Microsoft - they get double penalized for these losses," Keeton said. "Number one, they're paying for the electricity that gets lost as heat. And then because it gets lost as heat, they're paying for the electricity to then cool" the data center, Keeton said.

Onsemi believes it can reduce those power losses by a full percentage point. While a percentage point does not sound like much, the estimates of how much power AI data centers will consume is staggering, with some groups estimating up to 1,000 terawatt hours in less than two years.

One percent of that total, Keeton said, "is enough to power a million houses for a year. So that puts it into context of how to think about the power levels."



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.