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Speaker 1: Computer hardware maker HP Enterprise joining the RUSS to artificial

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Speaker 1: intelligence in earnings announced this week, HPE saying it expects

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Speaker 1: softer demand for service and storage, but it's hoping it's

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Speaker 1: new AI venture will offset the slowdown. The plan including

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Speaker 1: a bigger partnership with chip Giant in Vidia. Antonio Nery,

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Speaker 1: the CEO of HPE, joining us from Barcelona where he's

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Speaker 1: been speaking to customers. Antonio, great to catch up with you, sir.

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Speaker 1: Let's start with that relationship within video for our audience

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Speaker 1: who aren't familiar with it. Can you describe it to

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Speaker 1: us and how beneficial it's going to be to both

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Speaker 1: of you.

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Speaker 2: Yeah, well, good morning, Thanks for having me. As you

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Speaker 2: see we are in Barcelona. There's still a show going on.

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Speaker 2: We hosted HBEN Discovered here with more than three thousand customers,

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Speaker 2: and thanks again for having the opportunity to talk to you.

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Speaker 2: So here a discoverer in Barcelona. We announce an expanded

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Speaker 2: partnership with Nvidia. Two weeks ago at the.

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Speaker 3: Supercomputer event in Denver, we announced a.

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Speaker 2: Deep solution for what we call model developers for generative AI,

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Speaker 2: using our supercomputing capabilities plus our intellectual property in the

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Speaker 2: software space plus Nvidia chipsets and other aspects of what

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Speaker 2: they do to provide a massive capability for motor developers

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Speaker 2: to speed up the trimming models. And here on Thursday

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Speaker 2: I announced an extension of the partnership for enterprise customers

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Speaker 2: to what we call fine tune those models. And that's

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Speaker 2: the right time to value using our expertise as well

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Speaker 2: as our services capabilities and the software to be able

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Speaker 2: to deploy.

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Speaker 3: On premises and at the edge.

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Speaker 2: So this is a complete solution for what we call

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Speaker 2: the AI life cycle from trinity to tune into infancy,

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Speaker 2: and customer has a massive reception because they want to

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Speaker 2: privately fine tune the models with their data in a

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Speaker 2: secure and compliant way.

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Speaker 1: It's clear your stock is benefiting from the glow of Nvidia.

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Speaker 1: We can see that. I think Raymond James writing that

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Speaker 1: you're getting a seat at the AI table. Can you

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Speaker 1: talk to us about the pace of adoption of this technology.

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Speaker 1: I think many of us Antonio surprised by some of

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Speaker 1: the guidance we had repeatedly from Nvidio that this wasn't

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Speaker 1: just a hopeful story about the future, it was real

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Speaker 1: and present. Can you talk to us about that well?

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Speaker 2: I think there's two comportents, right, So the story is

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Speaker 2: absolutely real. We see it in the quality of the

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Speaker 2: dialogs with customers which are now accelerating and mobile training.

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Speaker 3: So you think about this. At the beginning of twenty

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Speaker 3: twenty three, we.

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Speaker 2: Had less than one hundred million dollars what I call

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Speaker 2: accelerator processing units in our server business. At the end

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Speaker 2: of twenty twenty three, we grew that business to three

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Speaker 2: point six billions and nobus and that.

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Speaker 3: Was literally in ten months.

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Speaker 2: And the reason why that's happened is because the technology

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Speaker 2: has achieved an inflection point what is ready to be deployed.

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Speaker 3: However, our story is not just AI.

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Speaker 2: Just to be clear, Jonathan Lissa, our story is a

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Speaker 2: combination of a hybrid cloud, a cloud.

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Speaker 3: Native world in an AI natered world. Think about it

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Speaker 3: this way.

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Speaker 2: Most of our data today sits in the cloud native world,

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Speaker 2: whereas in your premise and manufacturing flows and hospitals and

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Speaker 2: obviously in the public cloud.

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Speaker 3: But AI needs that data is one hundred for that data.

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Speaker 2: And therefore now we need an AI native architecture to

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Speaker 2: train and find tune these models with that data and

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Speaker 2: then put it in production, which ultimately is the value

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Speaker 2: to change your processes and be able to achieve those outcomes,

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Speaker 2: and we deliver all of that to our HPIG platform

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Speaker 2: and that's what we see a tremendous growth in a

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Speaker 2: connectivity business, in a hybrid cloud business, and then obviously

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Speaker 2: now in AI, and we have a unique portfolio to

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Speaker 2: address all aspects of what customers need.

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Speaker 4: Antonio. This year, we've been talking to so many people

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Speaker 4: who talk about a winner takes all type of trend

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Speaker 4: in tech, in particular Amazon's Aws, Microsoft's zore taking an

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Speaker 4: increasing part of the market share. How do you compete

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Speaker 4: at a time where people seem to be gravitating toward

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Speaker 4: the biggest players.

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Speaker 2: Well, there is an interesting opportunity because obviously the last decade,

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Speaker 2: think about twenty ten, twenty twenty, it was all about

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Speaker 2: the cloud decad.

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Speaker 3: You know, the cloud for.

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Speaker 2: Us is an experience, is for accelerate speed and agility

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Speaker 2: across the business. And now we enter what I called

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Speaker 2: the new age of insights, and it's all about deriving

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Speaker 2: insights from the data and changing the way you do business.

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Speaker 3: But that inflection point.

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Speaker 2: Actually requires a different architecture and therefore customers are not

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Speaker 2: keen to put the public data you know, the data

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Speaker 2: and the public domain and make sure that they control

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Speaker 2: that because that's the intellectual property.

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Speaker 3: And that creates a massive opportunity for us.

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Speaker 2: And we think hPG, like as the fourth Cloud, is

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Speaker 2: a design for hybrid, meaning you can take advantage of

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Speaker 2: the public cloud, also take advantage your own premises and

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Speaker 2: more and more at the edge and be able to

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Speaker 2: do everything you need in a unified experience.

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Speaker 3: And that's the value that we bring to the table.

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Speaker 2: And ultimately we have every aspect of the solution, stock

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Speaker 2: and the partnerships like we did this week with a

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Speaker 2: media to give that unified experience.

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Speaker 4: We've been hearing all about consolidation in big tech. How

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Speaker 4: much are some of the biggest cloud providers kind of

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Speaker 4: trying to get into that market where it's basically the

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Speaker 4: hybrid trying to have bespoke solutions for companies versus having

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Speaker 4: the market to yourself.

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Speaker 3: I mean, the market is big.

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Speaker 2: I think you know, we're talking about over a trillion

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Speaker 2: dollar market opportunity from a tea perspective, and I believe

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Speaker 2: the eye opens an incremental one point six trillion dollar

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Speaker 2: opportunity for everyone. So there's plenty of market out there

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Speaker 2: and you think about us as a company. This year

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Speaker 2: we grew five and a half percentage revenue. We expand

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Speaker 2: the gross margin very rapidly. It takes to the mix.

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Speaker 3: And the value will bring to the table, achieve.

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Speaker 2: Record breaker performance in long gap, the little edgy to

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Speaker 2: share and free cash flow, and we believe there's a

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Speaker 2: plenty of runway here. But ultimately the winner is about

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Speaker 2: all delivered in a simple, simple experience with the knowledge

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Speaker 2: is easy to deploy and consume and ultimately accelerate business outcomes.

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Speaker 3: It's not just about thinking about technology and speeds and feeds.

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Speaker 2: It's about delivering that agility to deliver those of business outcome.

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Speaker 3: I thick HP is uniquely position with the fourth cloud.

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Speaker 3: I call it hpgreen Lake.

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Speaker 1: Too much tech. Let's finish on football. Are you happy

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Speaker 1: that Messi is no longer in Barcelona and we have

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Speaker 1: him here in America now?

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Speaker 2: Antonio, Well, I'm happy that missus Argentina and I was

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Speaker 2: born in Argentina and I had the honor.

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Speaker 3: And pleasure to meet both of them. In fact, I

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Speaker 3: was able.

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Speaker 2: To play one time again with Deva Maradona and I.

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Speaker 3: Have say for us as an incredible pride.

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Speaker 2: But obviously having him in the United States gives me

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Speaker 2: the opportunity to go watching more often.

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Speaker 1: Amazing. I want to hear that Maradonna story one day. Antonio,

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Speaker 1: thank you, Antonia, Nearda, if you the pack at, thank

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Speaker 1: you sir on the latest