Penguin Solutions Introduces CXL-Enabled DDR4 Module to Help Address Memory Shortages in AI Data Centers

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Validated reuse of prior-generation DDR4 provides performance, cost savings, and an alternative path to procuring memory for AI infrastructure buildouts

FREMONT, Calif.--(BUSINESS WIRE)-- Penguin Solutions, Inc. (Nasdaq: PENG), the AI Factory Platform Company, today introduced the SMART CXL-8F2W-D4, an eight-DIMM DDR4 Compute Express Link^® (CXL) memory add-in card that enables organizations to adapt DDR4 memory for use in AI systems. Using DDR4 as an alternative to newer-generation DDR5 memory provides an innovative approach offering performance, sourcing, and economic benefits for the buildout of AI infrastructure.

According to TechInsights, Inc., AI data centers account for 34% of DRAM demand in 2026, a figure expected to climb to nearly 50% by 2029. This rapid growth is driving up memory costs and putting increasing pressure on infrastructure budgets. For organizations deploying new servers, whether as part of a technology refresh or a new data center buildout, the rising cost of memory presents a significant challenge, underscoring the need for more cost-effective ways to expand memory capacity.

“As AI inference workloads accelerate, rising memory costs are creating new challenges for organizations building and scaling AI data centers,” said Satya Iyer, Senior Vice President and General Manager, Integrated Memory at Penguin Solutions. “Many organizations already have significant investments in DDR4 memory that can be leveraged to address growing memory demands. By combining CXL technology with our proven memory screening and validation expertise, we're helping customers maximize the value of existing memory investments, reduce infrastructure costs, and meet the performance and reliability requirements of production AI environments.”

Penguin’s SMART CXL-8F2W-D4 utilizes the Marvell^® StructeraX^™ CXL controller and supports up to eight DDR4 RDIMMs, making that memory available to compatible servers as additional system capacity. This helps IT teams address memory limitations for AI inference, in-memory databases, and other memory-intensive workloads.

With DDR4 memory available from previous-generation servers and data centers, Penguin Solutions has launched a program to recover memory during technology refresh cycles or source it through resellers. The program enables organizations to repurpose existing DDR4 inventory to address immediate memory needs.

To help customers deploy reused memory with confidence, Penguin Solutions combines the SMART CXL-8F2W-D4 with its Zefr® ultra-high reliability memory screening process. The process simulates strenuous real-world conditions to validate DDR4 for production environments. Customer-owned DDR4 memory undergoes inspection, testing, and qualification before installation, and each populated card is validated in a compatible host system prior to shipment.

By repurposing existing DDR4 memory, organizations can potentially reduce the cost of expanding system memory capacity, extend the useful life of existing components, and maximize previous investments while addressing evolving workload requirements and the reliability and compatibility considerations associated with reused components.

The SMART CXL-8F2W-D4 is available for qualified customer opportunities on compatible CXL 2.0 platforms. To learn more, visit PenguinSolutions.com.

Penguin Solutions and Zefr are registered trademarks of Penguin Solutions, Inc. All other trademarks are the property of their respective owners.

About Penguin Solutions

Penguin Solutions is the AI Factory Platform Company. We design, build, and manage next-generation data centers for enterprises, sovereign AI initiatives, and neocloud providers.

With deep design expertise at the intersection of data center AI infrastructure and memory solutions, our Full-Stack AI Factory Platform combines differentiated infrastructure software, advanced memory, compute systems, end-to-end services, and industry-leading partner technologies to help customers accelerate deployment, optimize token economics, and maximize the return on their AI investments.

Learn more at PenguinSolutions.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20261112319858/en/

PR Contact
Lerin O’Neill
Penguin Solutions
Corporate Communications
408-832-7083
pr@penguinsolutions.com

Source: Penguin Solutions

Key Terms

cxl technical

An abbreviation for “cancel” or “canceled,” used in brief notices to indicate that an event, order, meeting, dividend, or other planned action will no longer take place. Investors care because cancellations can change expected cash flows, timing of corporate actions, trading volume or regulatory filings—similar to someone calling off a planned event, which can alter plans and prompt reassessment of value or risk.

ddr4 technical

DDR4 is a generation of high-speed computer memory used in personal computers, laptops and servers to temporarily hold the data a processor is actively working on — think of it as a short-term workspace that lets devices run programs smoothly. Its prevalence, pricing and compatibility affect demand and upgrade cycles for PCs, servers and components, influencing revenue, margins and product road maps for hardware and chip makers.

ddr5 technical

DDR5 is the latest generation of high-speed volatile memory used as the short-term workspace for computers and servers, like a faster, larger desk where a processor keeps information it’s actively using. It matters to investors because upgrades to DDR5 drive demand across chip makers, computer builders and data-centre operators, affecting sales, pricing power and product cycles; companies that lead in DDR5 production or adoption can gain a competitive and financial edge.

dram technical

A dram is a small, traditional unit used to measure either mass or liquid volume in manufacturing and pharmaceuticals — roughly 1.77 grams for a weight dram or about 3.7 milliliters for a fluid dram, similar to a small teaspoon or a couple of drops. Investors care because dram-based measurements affect drug dosing, packaging sizes, labeling compliance and raw-material usage, which in turn influence production costs, inventory counts and regulatory risk.

rdimms technical

Registered DIMMs (RDIMMs) are a type of server-grade memory module that include a small built-in register which buffers control signals between the memory chips and the computer’s memory controller. Like adding a traffic coordinator on a busy road, the register reduces electrical strain and improves stability, allowing systems to support larger amounts of RAM and run more reliably; that matters to investors because RDIMM use affects server cost, performance, upgradeability and supplier demand in data-center and enterprise markets.