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Speaker 1: The AI high pass centered in large part around the

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Speaker 1: workhorse processing chips from Nvidia that are needed to create

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Speaker 1: those large language models. But HP Enterprise it's a leading

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Speaker 1: seller of the supercomputers needed to crunch that data. Yesterday,

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Speaker 1: HPE unveiled it's green Lake for large language models. It's

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Speaker 1: a service built to handle the large computing power needed

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Speaker 1: to support the new technology. Please to say you there,

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Speaker 1: joining me from the showroom of the HPE Discover conference

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Speaker 1: out in Las Vegas as Antonio Neer, the CEO of

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Speaker 1: Hewlett Packard Enterprise.

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Speaker 2: Antonio, great to see you. Thank you. Romain, great to

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Speaker 2: see you too.

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Speaker 1: Back in twenty nineteen, you guys sort of did this

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Speaker 1: big rollout of green Lake Central. This was a big

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Speaker 1: push kind of solidify your grip in the cloud market.

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Speaker 1: Tell us how artificial intelligence and what you announced this

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Speaker 1: week ties into that platform.

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Speaker 3: Well, the announcement we made yesterday and AI completes our

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Speaker 3: vision and the execution the strategy we have been through

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Speaker 3: over the last four to five years, which green Lake

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Speaker 3: is our cloud cloud where we offer edge services, hybrid

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Speaker 3: cloud services, and now we're going to offer AI services,

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Speaker 3: So in many ways complete the entire portfolio because in

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Speaker 3: twenty eighteen I stated that the enterprise of the future

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Speaker 3: will be edge centric, cloud enabled, data driven, and obviously

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Speaker 3: AI is an accelerate of the data driven strategy. And

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Speaker 3: we made available an amazing set of services yesterday, with

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Speaker 3: the leading service being THEAI Cloud, meaning a public offer

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Speaker 3: so customers can come and privately to train their AI

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Speaker 3: models in the most sustainable infrastructure.

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Speaker 1: I am curious Antonio as to whether this is sort

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Speaker 1: of a closed system, meaning for your customers is primarily

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Speaker 1: going to be an interaction with HPE versus say an

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Speaker 1: Amazon or a Microsoft, where they are using a lot

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Speaker 1: more third party companies and third party products.

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Speaker 3: Now, actually, if you think about the introduction of the

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Speaker 3: first what I call LLM as a service with a

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Speaker 3: deep partnership.

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Speaker 2: With Ali fil fund job my.

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Speaker 3: Company that really focus on giving the ability to customers

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Speaker 3: to privately train the models.

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Speaker 2: We expect this portfolio to continue to.

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Speaker 3: Growth in vertical AI applications. Let's remember remaining that HPE

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Speaker 3: has been on the forefront of training AI for a

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Speaker 3: long time. Obviously has been very specific to unique customers

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Speaker 3: in the government, of the academia or in the climate space.

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Speaker 2: So we have deep expertise.

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Speaker 3: On how to train and tune these models. But we

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Speaker 3: open an HP green Lake for other companies to present

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Speaker 3: their AI models so customers can consume it as a service.

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Speaker 3: And I expect that we will have relationship with three

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Speaker 3: cloud providers because.

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Speaker 2: I believe in the end.

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Speaker 3: It would be a HYBRIDI model from training.

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Speaker 2: And tuning all the way to the inference.

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Speaker 1: Does this announcement? Is this more about placating existing customers

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Speaker 1: giving them an option or is this about attracting new

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Speaker 1: customers Antonio?

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Speaker 2: It's both.

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Speaker 3: You know, when you think about our hpgree Lakes momentum,

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Speaker 3: we already have sixty five and you need customer instances

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Speaker 3: that support twenty two thousand organizations to manage more than

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Speaker 3: two and a half million devices.

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Speaker 2: But what is interesting to me is the data.

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Speaker 3: Because in the ENDAI is all about data, and today

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Speaker 3: inside the HP green Lake platform, we already manage seventeen

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Speaker 3: exabytes of data on behalf of the customers. So now

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Speaker 3: we have bytes of data and we have exo scale

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Speaker 3: computer capabilities that we can bring to bear so they

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Speaker 3: can really drive the insights from that data.

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Speaker 1: Most of the analysts Antonio that have been following this

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Speaker 1: announcement that seemed to be relatively encouraged by what they heard.

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Speaker 1: So there has been sort of a consistent drumbeat about

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Speaker 1: the intense competition in this space and how HPE really

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Speaker 1: fits in there.

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Speaker 3: Of course, there's competitions everywhere we play, I mean at

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Speaker 3: the edge.

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Speaker 2: We are at the core.

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Speaker 3: We are a networking company with HP Aruba, and we

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Speaker 3: expanded a portfolio over the last few years. That business

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Speaker 3: is on track to be tripled this year since the

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Speaker 3: acquisition of Baruba. In the cloud obviously has been a

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Speaker 3: super competitive space, and yesterday we expanded our private cloud

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Speaker 3: portfolio and we brought automation to the platform in a

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Speaker 3: heater genius environment and AI would be competitive too, But

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Speaker 3: we always start from the customer point of view, what

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Speaker 3: problems we can solve in a way others can't, and

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Speaker 3: honestly define where we play and how we win, with

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Speaker 3: intent obviously to drive shoholder value, which is ulsom the

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Speaker 3: metric that we are accountable too. So I believe HP

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Speaker 3: is very well positioned to do that.

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Speaker 2: Well.

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Speaker 1: Let's talk about shareholder value. What are we looking at

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Speaker 1: in terms of the addition to growth, whether it's profitability

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Speaker 1: or revenue.

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Speaker 3: Obviously, AI will be a huge boost of revenue growth,

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Speaker 3: and we talked about this in the Q two earnings

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Speaker 3: where we specifically call out.

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Speaker 2: In ninety days.

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Speaker 3: Just in Q two, we booked an incremental eight hundred

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Speaker 3: million dollars just for this type of AI world loads.

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Speaker 3: Since then, our pipeline has grown out to over three billion,

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Speaker 3: and so this is where you see the momental maccelerated.

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Speaker 2: And the reason why they are coming.

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Speaker 3: To us is because they know we have the capabilities,

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Speaker 3: but also we have the trust. Trust is everything when

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Speaker 3: it comes down to AI, and to build trust, you

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Speaker 3: need to have model completion, and to have model completion,

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Speaker 3: need to have this capability. So we expect this business

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Speaker 3: to continue to grow and write profitable growth for our.

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Speaker 1: Sholders well as you seek to get a little bit

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Speaker 1: more traction on this, particularly when it comes to revenue growth.

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Speaker 1: Is that going to be enough, Antonio to make up

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Speaker 1: for some of the lack that we've been seeing in

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Speaker 1: the compute segment?

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Speaker 3: Now, listen, last year our compute business grew double digits

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Speaker 3: and we drove an amazing profitability. And we know compute

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Speaker 3: tends to be cyclical. You know there are period of

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Speaker 3: times where you modernize and you add compute capacity depending

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Speaker 3: on where you want to host the WORL loads and

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Speaker 3: the coperiods that will go through digestion. But remember Green Lake,

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Speaker 3: and that's an accelerator of our compute demand because ultimately

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Speaker 3: that comput demand stays there for a longer period of

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Speaker 3: time with hybrid prosmology and honestly, high got attached rates.

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Speaker 2: So that's why we are.

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Speaker 3: Growing the edge, we are growing the hybrid cloud, and

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Speaker 3: now we go to grow the AI together with the

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Speaker 3: data and COMPUTA will continue to be a very important

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Speaker 3: aspect of portfolio, but over time the portfolio mix is

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Speaker 3: going to go to those that line up businesses just mentioned.

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Speaker 2: All right, Antoni, we're gonna have to leave it there.

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Speaker 1: I appreciate you taking time out from the conference HPE

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Speaker 1: Discover out there in Las Vegas. Antonio Nery, the CEO

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Speaker 1: of Hewlett Packard Enterprise,