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(Bloomberg) — Hewlett Packard Enterprise Co. introduced new networking gear for artificial intelligence data centers, building on the products it acquired from Juniper Networks and striving to capture more of the demand for AI tools from corporate customers.
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As part of its annual conference, the company Tuesday unveiled networking switches that are specialized for inferencing, or running AI workloads. HPE also said Siemens Energy AG will use a collection of AI technologies it has built with Nvidia Corp. for a private cloud that can run simulations and manage engineering tasks for the German company.
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Traditional corporate customers are beginning to accelerate AI adoption and increasingly using AI agents to autonomously manage work such as coding, customer service and financial tasks.
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“Our point of view is that the core foundation is networking,” HPE Chief Executive Officer Antonio Neri said in an interview. “Without connecting the right infrastructure, the right level of computing to the right workloads and data, you’re not going to become an agentic enterprise.”
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Neri is betting heavily on AI customers to fuel revenue gains. The company’s shares had their best day ever earlier this month after HPE predicted annual sales will top Wall Street’s estimates, citing massive growth in AI-fueled demand for its servers and networking products.
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HPE acquired Juniper Networks for about $13 billion last year to bolster its networking business. The company competes with Cisco Systems Inc. in that market, while Broadcom Inc. is both a rival and a partner, depending on the products and services. Both of those companies are also investing to refresh networking gear in order to win AI business.
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The new HPE Juniper QFX switches are meant for the part of the networking market called scale-up, in which more power or capacity is added to an existing machine rather than stringing together more machines to boost capability. Customers trying to get AI models to run or answer queries rapidly in such a system need to connect multiple AI chips and pass data among them.
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HPE is adding more integrations with Nvidia’s AI models, agentic tools and computer chips. Nvidia, whose graphics processing units train and run the majority of AI models, has become a kingmaker and necessary partner in the space. It also has a close partnership with Cisco.
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