What is the value of AI Ether?

NVIDIA actively embraces Ethernet, launching the SpectrumX-800 Ethernet and planning to contribute billions of dollars in revenue, indicating that it is actively promoting network connectivity towards Ethernet.

The long-standing rivalry between Ethernet and IB networks:

• Ethernet is a widely used general local area network, with high compatibility, low cost, and good flexibility.
• The IB network is dedicated to high-performance computing and AI scenarios, offering superior performance.
• The Ethereum network has a strong community base, and the IB network is backed by NVIDIA's strong influence.

Looking to the future, Ethernet is expected to become the mainstream network interconnection solution:

• NVIDIA does not only accept IB solutions, but also considers Ethernet.
• The performance advantages of Ether are becoming increasingly apparent.
• AI Ether network forms the Super Ether Alliance and NVIDIA Spectrum-X two major camps

Ethernet has better performance, large-scale clustering capabilities, and openness, and is expected to become mainstream with the accelerated development of AIGC. It is recommended to pay attention to the switch industry, as chips, manufacturing, and brand companies may all benefit.

LPO optical module solutions may become the best choice for NVIDIA's AI Ethernet, offering advantages such as low power consumption, low latency, and low cost. The penetration rate of LPO is expected to accelerate, giving leading companies like Zhongji Xuchuang and NewEase more advantages.

Artificial Intelligence

Google invests $2 billion in Malaysia to build a data center for AI development

Google announced an investment of $2 billion in Malaysia to build its first data center, establish a new cloud region, and advance AI development. This is Google's largest investment in Southeast Asia, demonstrating its commitment to the regional market. Google will also support AI literacy programs for students and educators.

Recently, Southeast Asia has become a hotspot for investment by global tech giants. Consulting firm Kearney predicts that by 2030, AI is expected to contribute about $1 trillion in growth to the Southeast Asian economy. It is estimated that by 2028, the demand for data centers in Southeast Asia and North Asia will grow at an annual rate of 25%, far exceeding the 14% in the United States, and is expected to become the second largest source of data center revenue in the world.

In 2024, the shipment share of AI smartphones will be 16%, and it will reach 54% by 2028.

The Canalys report shows that in 2024, 16% of global smartphone shipments will be AI phones, increasing to 54% by 2028. The annual compound growth rate of the AI phone market from 2023 to 2028 is projected to be 63%. Global manufacturers like Apple, Google, and Samsung, along with Chinese manufacturers such as Honor, OPPO, Xiaomi, and vivo, are at the forefront of AI functionality integration, each with different strategies.

Consumers are increasingly interested in the AI features of smartphones, but are constrained by privacy and data security issues. Manufacturers need to clearly communicate information on data usage, the role of AI features, and compliance with privacy regulations to build consumer trust.

Gartner predicts global public cloud spending will exceed $675 billion in 2024

Gartner predicts that global end-user spending on public cloud services will reach $675.4 billion in 2024, an increase of 20.4% year-on-year. Generative AI and application modernization are the main driving factors. IaaS and PaaS are growing the fastest, at 25.6% and 20.6%, respectively. SaaS remains the largest spending area, expected to reach $247.2 billion in 2024, up 20%.

The infrastructure requirements generated by AI model training, inference, and fine-tuning continue to grow, directly affecting IaaS consumption. Independent software vendors modernize applications, and enterprises increase the use of cloud in fields such as AI and machine learning, driving SaaS spending growth.

Telecommunications Industry

Top 10 Optical Modules in the World 2023

LightCounting announced the 2023 Global Top 10 Optical Module List:

1. Xuchuang Technology
2. Coherent(Finisar)
3. Huawei
4. Cisco(Acacia)
5. Guangxun Technology
6. Hisense Broadband
7. New Ease Win
8. Huagong Zhengyuan
9. Solstice Optoelectronics
10. Marvell

Seven Chinese manufacturers have made the shortlist. In 2023, the demand for AI-driven 800G and 400G optical modules surged. The optical module market revenue is expected to grow by 27% in 2024. Integrated photonic technology offers low-cost scalable optical solutions, while silicon photonic technology has advantages. LPO serves as a transition solution to CPO, reducing power consumption and latency.

Micron: HBM sales this fiscal year rise to hundreds of millions of dollars

Micron stated that negotiations for HBM memory supply will be basically completed by 2025. HBM sales are expected to reach hundreds of millions of dollars this fiscal year and tens of billions in the next fiscal year. It is anticipated that storage prices will rise significantly from the second half of 2024 to 2025, leading to a substantial increase in HBM demand. Micron's 12-layer HBM3E is currently undergoing qualification validation and will be produced according to customer progress. It is expected that the industry will transition from 8 layers to 12 layers by 2025, with an increase in shipments of 12-layer HBM products.

T-Mobile acquires US Cellular wireless business for $4.4 billion

T-Mobile announced it will acquire the majority of US Cellular's wireless business for $4.4 billion, including customer resources, physical stores, and 30% of spectrum assets. T-Mobile aims to improve coverage and expects its financial forecast for 2024 to remain unaffected. The transaction is expected to be completed by mid-2025; if not completed, T-Mobile will pay a termination fee of $60 million.

The establishment of the "National Big Fund" Phase III, with a registered capital of 344 billion yuan

The National Integrated Circuit Industry Investment Fund Phase III was registered and established on May 24, with a registered capital of 344 billion yuan. The contributing shareholders include China Development Bank Financial Leasing, China Mobile Capital, and the six major state-owned banks. The contribution from the six major banks accounts for 33.14%. The fund will focus on supporting the integrated circuit manufacturing sector while also taking into account design, packaging and testing, equipment, and materials, promoting enterprises to enhance production capacity and implement mergers and restructuring.