Akamai First to Offer VPUs in the Cloud
Rhea-AI Summary
Akamai (NASDAQ: AKAM) has launched Cloud Accelerated Compute Instances, becoming the first cloud provider to offer NETINT video processing units (VPUs) in the cloud. The new compute category features Quadra T1U VPUs, capable of encoding 32 live streams at 1080p30 broadcast quality and supporting up to 8Kp60 resolution.
The VPU architecture delivers up to 20 times greater throughput than CPU-only solutions at one-tenth of the cost. This technology enables companies to offload compute-intensive video processing tasks while freeing CPU resources for other functions like dynamic packaging and real-time speech-to-text captioning.
This initiative strengthens Akamai's position in media services, complementing its existing solutions trusted by the top 10 video streaming services. The company will showcase its cloud-based capabilities at the 2025 NAB Show in Las Vegas, April 6-9.
Positive
- First-mover advantage in cloud-based VPU technology
- 20x greater throughput at 1/10th cost compared to traditional solutions
- Expands service offering for top 10 video streaming services
- New revenue stream potential in growing video streaming market
Negative
- Significant investment required in specialized hardware infrastructure
- to specific use case of video processing
- Dependent on single hardware provider (NETINT)
News Market Reaction 1 Alert
On the day this news was published, AKAM gained 0.11%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Akamai launches new category of cloud-based compute powered by NETINT video processing units
NETINT VPUs are designed for workloads where minimizing the cost of delivering high-quality video streams is essential or where reducing energy consumption is a priority. Akamai's accelerated instances are powered by Quadra T1U VPUs, a single-chip solution that supports encoding resolutions up to 8Kp60 in industry-standard formats including AV1, HEVC, and H.264 with 8/10 bit support, including HDR. As the highest-density hardware encoder available, the Quadra T1U can encode 32 live streams at 1080p30 broadcast quality, with the capacity scaling linearly for resolutions above or below HD.
The rise in live and on-demand video streaming, user-generated content, and video-driven social media has driven companies to look for optimized hardware and cloud solutions to improve application performance. However, transcoding-optimized cloud computing resources are rare. Previously, the only way to deploy NETINT's VPU hardware has been to purchase it outright and run it on-premises or in a colocation facility. Akamai Accelerated Compute Instances are designed for media companies that are delivering video on demand and live streaming services, providing the scalability needed without inflating IT budgets.
"By bringing traditionally hardware-confined power to the cloud, we're removing barriers that have held businesses back. Companies can now cut costs, scale seamlessly, and deliver better streaming experiences — solving a major industry challenge that's been overlooked for too long," said Jon Alexander, Vice President of Product Management at Akamai. "Being the first cloud provider to offer VPUs gives Akamai a new competitive edge to expand our long-existing relationships with our media partners."
NETINT VPUs allow companies to reallocate their application's CPUs by offloading compute-intensive video processing tasks to the VPU. A VPU architecture offers up to 20 times greater throughput than CPU-only solutions. This frees the CPU to do other things like dynamic packaging, de-interlacing, real-time speech-to-text captioning, software decoding for standards not supported in the VPU, and run popular applications like FFmpeg and GStreamer.
"VPUs are the ultimate cheat code for video streaming profitability," said Randal Horne, Chief Revenue Officer, NETINT. "The expenses to deliver massive volumes of video content using traditional software encoders are crippling. NETINT is proud to be the VPU engine inside Akamai Accelerated Compute Instances, bringing up to 20 times the throughput at a tenth of the cost compared with traditional industry platforms. With Akamai Cloud, NETINT helps media companies reduce equipment investment and cut OPEX to meet their growth and profitability targets."
Akamai is making a play to be the cloud for media and to capture areas of the market overlooked by hyperscalers. Akamai media services, trusted by all top 10 video streaming services, include solutions for contribution, transport, transcoding, packaging, digital rights management, ad insertion, and content security. With the first-time cloud availability of VPUs, transcoding-optimized NVIDIA GPUs, and industry-low egress costs, Akamai enables seamless performance at scale. Its cloud platform is open by design, giving customers control over every aspect of their workflow and access to a vibrant and growing third-party partner network. Media companies can choose from multiple software and partner options across each workflow step to transport, prepare, process, deliver, secure, and monetize digital content. The scale of Akamai's massively distributed cloud gives it the unique ability to minimize egress fees and offer generous allowances, providing unmatched price-performance.
Akamai will show its range of cloud-based media delivery, computing, and security capabilities at the 2025 NAB Show in
About Akamai
Akamai is the cybersecurity and cloud computing company that powers and protects business online. Our market-leading security solutions, superior threat intelligence, and global operations team provide defense in depth to safeguard enterprise data and applications everywhere. Akamai's full-stack cloud computing solutions deliver performance and affordability on the world's most distributed platform. Global enterprises trust Akamai to provide the industry-leading reliability, scale, and expertise they need to grow their business with confidence. Learn more at akamai.com and akamai.com/blog, or follow Akamai Technologies on X and LinkedIn.
About NETINT
NETINT is the creator of a new video processing solution called video processing unit, VPU, which is built on the company's Codensity ASIC custom silicon. Designed to meet the needs of the most demanding video encoding workflows, the second-generation NETINT VPU, Quadra, received a Technical Emmy Award alongside Meta and Google in 2024 for its contribution to cloud video acceleration. Video engineers wanting to learn how VPUs can improve their platform, service efficiency, and cost are encouraged to visit netint.com.
Contacts
Akamai Media Relations
akamaipr@akamai.com
Akamai Investor Relations
invrel@akamai.com
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SOURCE Akamai Technologies, Inc.
FAQ
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