Speaker 1: HPE. We're wanting strong fourth quarter results and we're seeing
Speaker 1: shares at a new record high. It's all around the
Speaker 1: sales strength that we're seeing for service to power AI workloads.
Speaker 1: How resilient is that? Let's ask Antonio and Airly HPE CEO.
Speaker 1: So what's interesting about the AI server business was that
Speaker 1: it's still growing fast. But is it cool sequentially? Are
Speaker 1: you feeling confident about the purchases here?
Speaker 2: Well, good morning, Carol, and thank you for having me today.
Speaker 2: We have an exceptional quarter and obviously one of the
Speaker 2: flagship elements of that quarter was AI, but I have
Speaker 2: to say it was more than AI. It was also
Speaker 2: a hybrid cloud business performing exceptionally well and the sort
Speaker 2: of but in general because all THEMTAR we have growth
Speaker 2: both on the traditional CPU and obviously on the I side,
Speaker 2: but on the I demand continued to be very very strong.
Speaker 2: You know, as of today, we have more than three
Speaker 2: and a half billion dollars in backlog. That shows the
Speaker 2: momentum that's there in the market. Now we're in a
Speaker 2: significant uptake in the pipeline in enterprise AI, but in total,
Speaker 2: we have a pipeline that's a multiple of the backlogs
Speaker 2: so as we go into twenty twenty five, obviously there
Speaker 2: is a transition to the direct liquid cool set of
Speaker 2: technologies with Blackwell and Grace Blackwell, and as you know,
Speaker 2: two months ago we announced a new architecture which is
Speaker 2: one hundred percent fund less. Direct liquid cooling is the
Speaker 2: industry first and one third more than one third of
Speaker 2: that three and a half been under a back log
Speaker 2: is already on black Bells. So we expect continue growth
Speaker 2: as we go into twenty five.
Speaker 1: How are those black Role shipments looking. How certain.
Speaker 2: Well, definitely is all very consistent to what we have seen.
Speaker 2: The number of customers continue to grow, The demand across
Speaker 2: four different segments continue to be very solid. You know,
Speaker 2: when I think about the AI, I think about four
Speaker 2: distinct segments. I call it the model builders and the hyperscalers,
Speaker 2: then the two your three service provider, the sovereign which
Speaker 2: is growing very rapidly in terms of interest, and the
Speaker 2: cell cycles a little bit longer there. But in talking
Speaker 2: about large scale deployment, and we are in the process
Speaker 2: to building in the UK the UK Bristol AI Cloud
Speaker 2: and in Japan the ais T and then the enterprise
Speaker 2: which obviously the order value is significant lower, but the
Speaker 2: number of transaction is significantly higher.
Speaker 1: But the supply side has been the issue with Blackwell
Speaker 1: in particular. How swiftly are those shipments arriving? How on
Speaker 1: track do you now feel it is?
Speaker 2: Yeah, I will say, you know, the supply will come
Speaker 2: in due time because of the transition that Jensen and
Speaker 2: team are driving. I will not say it's problematic, It's
Speaker 2: just a transition in early part of twenty twenty five.
Speaker 2: Today we continue to ship you know, H one hundreds
Speaker 2: and the H two hundreds. But as I said earlier, Carolyn,
Speaker 2: we already have more than one third of that more
Speaker 2: than three and a half billion dollars already in Blackwell.
Speaker 2: And a lot of that has to do with companies
Speaker 2: that lead with that technology because they want to get
Speaker 2: better performance, better image density, and ultimately lower the cost
Speaker 2: per training.
Speaker 1: You were really interesting articulating just the breadth of demand
Speaker 1: coming from there, mentioning sovereign as well as enterprise for example.
Speaker 1: How resilient is that demand? What's interesting about your backlog,
Speaker 1: which you say is very resilient and strong, but there
Speaker 1: was a seven hundred million dollar d booking. How confident
Speaker 1: are you in some of these purchases in some of
Speaker 1: these deals that have been signed.
Speaker 2: Yeah, So in our current more than three and a
Speaker 2: half billion dollars, are very very confident. In Q four,
Speaker 2: we booked one point two billion dollars of new orders
Speaker 2: and we decided to book a specific orders because we
Speaker 2: had specific concerns about the risk associated with that order,
Speaker 2: and we have very very strong controls in place, and
Speaker 2: we felt that because of the risk associated with even
Speaker 2: the finance inside, we felt this was not worth the headache.
Speaker 2: And honestly, we decided to focus on the number of
Speaker 2: growing customers we have and allocated supply to the right customers.
Speaker 2: So that's why we decided to debook the specific order.
Speaker 1: Caroline, you're also doing deals, of course. We are hearing
Speaker 1: confidence on June and PAN Networks acquisition for the early
Speaker 1: twenty twenty five. Is that just going to sell through DOJ?
Speaker 1: Do you expect with the next administration?
Speaker 2: Yeah? Well, first of all, we have received pretty much
Speaker 2: all the approvals around the world with what I call
Speaker 2: unconditional support. Basically, it tells you that the rest of
Speaker 2: the world sees this pro competitive and with the DOJ,
Speaker 2: we have had a very collaborative process through throughout the
Speaker 2: last several months, and we expect the transaction to close
Speaker 2: in the early part of twenty twenty five, which still
Speaker 2: is within the original timelines we stated when I announced
Speaker 2: the deal on January tenth, which was end of calendar
Speaker 2: twenty twenty four or early part of calendar twenty twenty five.
Speaker 2: And so nothing gives me post that will not be
Speaker 2: the case. And then in addition, for the United States,
Speaker 2: this is good not just pro competitive, but also for
Speaker 2: US national security because ultimately the combination Juniper n HP
Speaker 2: provides a better ability for US to compete outside the
Speaker 2: United States, particularly when we have Chinese competitor around the globe.
Speaker 2: And remember a part of that for the United States,
Speaker 2: we provide the largest supercomputers that are doing also AI
Speaker 2: and that requires a lot of networking. And today i
Speaker 2: Qula pac and Enterprise owns seven of the top ten supercomputers.
Speaker 2: Number one, number two, number three are HP.
Speaker 1: Systems, well being reflected in a new record high on
Speaker 1: the share price and augustanding sounding very upbeat about eventually
Speaker 1: what Juniper does in terms of accretion. We thank you,
Speaker 1: Antonio and ery is the HPECO today