AI Heats Up Hot Chips 2024 | The Gestalt IT Rundown: August 28, 2024

Introduction

In this episode of The Gestalt IT Rundown for August 28th, 2024, we dive into some major news in the tech sector, particularly focusing on the developments surrounding AI, storage technologies, and the recent Hot Chips conference.

Kyosha IPO and Storage Market Dynamics

Kyosha, a storage giant valued at approximately 10.3 billion dollars, is set to go public in October after filing paperwork with the Tokyo Stock Exchange. Despite previous roadblocks, including a slowdown in the NAND storage market, Kyosha is moving forward with its plans. Bane Capital is the primary investor, while Toshiba holds a 40% stake in the company.

The significance of Kyosha's IPO lies in the ongoing changes in the storage sector, particularly the recent spinouts and expansion of companies like Solid. There is speculation that Western Digital may also split its flash business, allowing for a more competitive landscape in SSD production as companies focus on enterprise storage solutions.

Cisco Merges AI with Security

Cisco recently acquired the Israeli startup Robust Intelligence to enhance its AI security strategy. Founded by a Harvard mathematics professor, Robust is positioned to address AI-enabled security models, which aim to eliminate "hallucinations" in AI outputs – a common issue in AI applications. This acquisition aligns with Cisco's broader strategy of investing a billion dollars in AI-focused startups.

Amid this shift, Cisco is undergoing layoffs and leadership changes, positioning itself to ensure that AI serves as an integral part of its security solutions rather than merely enhancing existing products.

Nvidia’s Dominance in AI Hardware

During the Hot Chips event, Nvidia presented its new Blackwell GPU data center clusters, featuring cutting-edge components designed for AI workloads. They also unveiled the Nvidia Inference Microservice (NIM), which facilitates practical AI applications through robust software frameworks. This move marks a shift towards deploying AI in production in a more "developer-friendly" manner, making AI accessible for businesses.

AA’s Fleet Data Management

AA announced its new Fleet Data Management offering, which centralizes telemetry data collection from applications, providing a normalized data repository for DevOps teams. This one-stop solution aims to simplify the monitoring process and improve data management through AI-enabled analytics, addressing a challenging landscape filled with both commercial and open-source telemetry software.

VMware Cloud Foundation Revamp

VMware's recent announcements at VMware Explore, including the release of VMware Cloud Foundation (VCF) version 9, represent a strategic shift. CEO Hawk Tan emphasized the importance of VCF for organizations looking to transition from cloud computing to on-premises solutions amidst rising costs and compliance challenges. The new version simplifies licensing models while focusing on private cloud offerings.

Veeam Takes the Lead in Enterprise Backup

In a noteworthy development, Veeam has overtaken Veritas as the number one company in the enterprise backup market according to Gartner. While the overall enterprise backup market saw 5% growth, Veeam's innovative strategies led to double-digit growth. However, with Cohesity poised to acquire Veritas' data protection assets, the competitive landscape is expected to change drastically in the near future.

Hot Chips Highlights

This year's Hot Chips saw several groundbreaking announcements, often centered around AI. Highlights included:

• Cerebras' Wafer Scale Computers: Cerebras showcased their massive wafer scale computers, which outperformed Nvidia's H100 GPUs by utilizing extensive SRAM capacities for advanced inferencing capabilities.

• Microsoft's Maya Accelerator: Microsoft introduced the Maya Accelerator, a purpose-built ASIC designed to efficiently run OpenAI workloads in Azure. This move signals Microsoft’s intent to reduce reliance on Nvidia’s hardware.

• Broadcom's Co-Packaged Optics: Broadcom made significant strides in reducing energy consumption through its co-packaged optics, integrating optical devices into CPUs for enhanced performance and reduced heat generation.

• IBM’s Telum 2 and Z17 Developments: IBM discussed the integration of DPI for Big Iron, showcasing the evolution of mainframe technology alongside AI acceleration capabilities.

• Intel’s Gaudi 3 Chip: Intel highlighted its Gaudi 3 chip, which stands as a viable competitor for inferencing workloads amid stiff competition from Nvidia.

Conclusion

The tech landscape is rapidly evolving, particularly with the emphasis on AI. Companies are leveraging innovations in both hardware and software to accommodate diverse workloads, illustrating a pivotal moment in the infrastructure space as organizations seek more efficient and effective solutions.

Keywords

Kyosha IPO, Cisco acquisition, AI security, Nvidia Blackwell, telemetry data management, VMware Cloud Foundation, Veeam, Hot Chips, Cerebras, Microsoft Maya, Broadcom, IBM mainframe, Intel Gaudi 3.

FAQ

Q: What is the significance of Kyosha's IPO?
A: Kyosha's IPO reflects the changing dynamics in the storage market, with a market valuation of approximately 10.3 billion dollars and new opportunities for competitive growth in SSD technology.

Q: Why did Cisco acquire Robust Intelligence?
A: Cisco’s acquisition aims to enhance AI-driven security models and eliminate hallucinations in AI outputs, essential for developing reliable security solutions.

Q: What advancements did Nvidia share during Hot Chips?
A: Nvidia unveiled its Blackwell GPU clusters aimed at AI workloads and the Nvidia Inference Microservice, facilitating easier deployment of AI applications.

Q: How does AA's Fleet Data Management improve telemetry?
A: The new system standardizes data collection from applications, providing a comprehensive view for DevOps to monitor performance effectively.

Q: What changes were announced for VMware Cloud Foundation?
A: VMware launched version 9 of VCF to broaden its appeal as a private cloud solution, responding to firms’ needs to cut costs and enhance compliance.

Q: Who is leading the enterprise backup market?
A: Veeam has overtaken Veritas as the leading enterprise backup solution provider, driven by strategic innovations in this growing market segment.