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."



Salesforce Gains as Software Firm Bets on AI Tools to Power Growth

The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
TT

Salesforce Gains as Software Firm Bets on AI Tools to Power Growth

The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights

Shares of Salesforce gained more than 5% on Thursday as investors cheered the customer relationship management software maker's upbeat quarterly results and its artificial intelligence push to drive growth.

The company has been heavily investing to integrate its AI technologies into existing products, such as its messaging platform Slack, to enhance their capabilities and attract more customers.

"We continue to see Salesforce as an under-appreciated AI winner as its differentiated data and early success in creating/deploying GenAI agents," Reuters quoted Goldman Sachs analyst Kash Rangan as saying.

Wall Street was concerned that tempered cloud spending would affect Salesforce in a tough economy, but the software-as-a-service (SaaS) firm reported better-than-expected revenue, profit and margins in the second quarter.

Salesforce also raised its profit forecast for the year ending January 2025, as margins continue to expand, thanks to its restructuring efforts last year.

The stock is trading at 24.49 times that of Wall Street's profit expectations, compared with 52.11 for SaaS peer ServiceNow and cloud contact center firm Five9's 13.30.

Salesforce is set to add $14 billion to its market capitalization if premarket gains hold. The company's valuation stood at $248 billion as of Wednesday's close.

"We think these results alone are not good enough to drive a sustainable rally from here. For that, we need more catalysts, which could come with the new AI solutions," which are set to be showcased at its event Dreamforce and launched in October, Barclays analyst Raimo Lenschow said.

Some analysts believe that sustained growth in the coming quarters can come through customer support platform Agentforce, which is not yet commercially available.