SMCI WILL FORM WELL ABOVE $500
The concept of "Sovereign AI" and SMCI building supercomputers in every country worldwide is an ambitious and speculative idea.
Infrastructure Investment
Building supercomputers in every country would require a massive global investment. Supercomputers are extremely expensive to design, build, and install, with costs ranging from $100 million to $300 million per system1. This doesn't include ongoing operational expenses.
Energy Requirements
Supercomputers consume enormous amounts of energy. On average, these systems use 6-7 megawatts of power, with peak consumption reaching 9.5 megawatts1. The annual energy cost for a single supercomputer can be approximately $6-$7 million1. Implementing such systems globally would require significant upgrades to power grids and energy infrastructure.
Total Cost of Ownership
The total cost of ownership for supercomputers goes beyond the initial investment. When factoring in electricity, labor, and facilities, the cost per core-hour can reach $0.12 to $0.15, assuming 100% utilization.
For a global initiative, these costs would be multiplied across numerous countries.
Economic Impact
The global supercomputer market is expected to grow significantly, with estimates suggesting it will reach $27.17 billion by 2034, growing at a CAGR of 11.2%. A worldwide "Sovereign AI" initiative could potentially accelerate this growth.
Challenges
Implementing supercomputers globally faces several challenges:
High operating costs: The substantial energy consumption and maintenance requirements pose significant ongoing expenses.
Technical expertise: Managing and optimizing supercomputers requires specialized skills, which may be scarce in some countries.
Environmental concerns: The massive energy requirements raise environmental issues that would need to be addressed.
Potential Benefits
Despite the challenges, a global supercomputer network could offer benefits such as:
Advanced research capabilities:
Countries could enhance their scientific research in fields like climate science, genetics, and materials science.
Economic development:
Access to supercomputing power could drive innovation and economic growth across various sectors.
Data sovereignty: Countries could maintain control over their data and AI development, aligning with the concept of "Sovereign AI".
While the idea of SMCI building supercomputers in every country is speculative, sure, but as Elon said, AI will be just like a utility comany and will required AI centers globally. The global investment in AI infrastructure is indeed substantial. Goldman Sachs estimates that around $1 trillion will be spent over the next few years on data centers, semiconductors, and grid upgrades related to AI development. This gives an indication of the scale of investment required for a global supercomputing initiative. SMCI is at the forefront of the AI implementation. Learn about the new partnerships being formed with NVDA. Meanwhile you should be counting the sales SMCI has been making. Tripple capacity and demand for the next decaded.
Infrastructure Investment
Building supercomputers in every country would require a massive global investment. Supercomputers are extremely expensive to design, build, and install, with costs ranging from $100 million to $300 million per system1. This doesn't include ongoing operational expenses.
Energy Requirements
Supercomputers consume enormous amounts of energy. On average, these systems use 6-7 megawatts of power, with peak consumption reaching 9.5 megawatts1. The annual energy cost for a single supercomputer can be approximately $6-$7 million1. Implementing such systems globally would require significant upgrades to power grids and energy infrastructure.
Total Cost of Ownership
The total cost of ownership for supercomputers goes beyond the initial investment. When factoring in electricity, labor, and facilities, the cost per core-hour can reach $0.12 to $0.15, assuming 100% utilization.
For a global initiative, these costs would be multiplied across numerous countries.
Economic Impact
The global supercomputer market is expected to grow significantly, with estimates suggesting it will reach $27.17 billion by 2034, growing at a CAGR of 11.2%. A worldwide "Sovereign AI" initiative could potentially accelerate this growth.
Challenges
Implementing supercomputers globally faces several challenges:
High operating costs: The substantial energy consumption and maintenance requirements pose significant ongoing expenses.
Technical expertise: Managing and optimizing supercomputers requires specialized skills, which may be scarce in some countries.
Environmental concerns: The massive energy requirements raise environmental issues that would need to be addressed.
Potential Benefits
Despite the challenges, a global supercomputer network could offer benefits such as:
Advanced research capabilities:
Countries could enhance their scientific research in fields like climate science, genetics, and materials science.
Economic development:
Access to supercomputing power could drive innovation and economic growth across various sectors.
Data sovereignty: Countries could maintain control over their data and AI development, aligning with the concept of "Sovereign AI".
While the idea of SMCI building supercomputers in every country is speculative, sure, but as Elon said, AI will be just like a utility comany and will required AI centers globally. The global investment in AI infrastructure is indeed substantial. Goldman Sachs estimates that around $1 trillion will be spent over the next few years on data centers, semiconductors, and grid upgrades related to AI development. This gives an indication of the scale of investment required for a global supercomputing initiative. SMCI is at the forefront of the AI implementation. Learn about the new partnerships being formed with NVDA. Meanwhile you should be counting the sales SMCI has been making. Tripple capacity and demand for the next decaded.
Note
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I close my position on SMCI because I'm waiting for the announcement on February 27 the filing and I don't think it's prudent to hold until that happens. We had a very nice advance at the moment and I'm going to wait and see.
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Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.