VCI Global Enters Into AI Computing Alliance (AICA) Led by Enlight Corporation and Supermicro
Rhea-AI Summary
VCI Global (NASDAQ: VCIG) has joined the AI Computing Alliance (AICA), led by Enlight and Supermicro. The alliance aims to establish AI Computing Centers (AICCs) globally, with the first center in Taiwan powered by NVIDIA H200 Tensor Core GPUs. VCI Global plans to establish Malaysia's first AICC by Q2 2025, replicating the Taiwan model. The alliance intends to expand to Singapore, Hong Kong, Japan, and Indonesia to meet the growing demand for AI computing power.
The global Large Language Model (LLM) market is projected to grow from $7 billion in 2024 to over $35 billion in 2030, with a CAGR of 30%. This initiative supports AICA's mission to become a leading platform for AI computation and drive technological innovation globally.
Positive
- VCI Global joins a strategic AI Computing Alliance with industry leaders
- Plans to establish Malaysia's first AI Computing Center by Q2 2025
- Potential to tap into the rapidly growing global LLM market, projected to reach $35 billion by 2030
- Expansion plans into other Asian markets, potentially increasing market presence and revenue opportunities
Negative
- Significant investment required to establish and operate AI Computing Centers
- Potential competition from established tech giants in the AI computing space
- Risks associated with rapid technological changes in the AI industry
Insights
As a technology analyst, I find VCI Global's entry into the AI Computing Alliance (AICA) to be a significant move with potential long-term implications. The alliance, led by industry heavyweights Enlight and Supermicro, aims to establish AI Computing Centers (AICCs) globally, starting with Taiwan and Malaysia.
The first AICC in Taiwan, powered by 256 NVIDIA H200 Tensor Core GPUs, is set to deliver an impressive 93 PFLOPS of AI computing power. This would potentially rank it 15th globally in AI computing power, making it one of Asia's fastest AI data centers. The use of H200 GPUs, which offer
VCI Global's role as a strategic partner for AICA initiatives, particularly in establishing Malaysia's first AICC by Q2 2025, positions the company at the forefront of AI infrastructure development in Southeast Asia. This move aligns with the projected growth of the global Large Language Model (LLM) market, expected to reach
However, investors should consider the following:
- The competitive landscape in AI infrastructure is intense, with tech giants like Google and Amazon also investing heavily.
- The success of these AICCs will depend on their ability to attract and retain clients in a rapidly evolving market.
- Regulatory challenges in different countries could impact the expansion plans of the alliance.
While the initiative shows promise, its long-term success will hinge on execution and the ability to stay ahead in the fast-paced AI technology race.
From a financial perspective, VCI Global's participation in the AI Computing Alliance (AICA) presents both opportunities and challenges. While the company doesn't disclose specific financial commitments, the scale of the project suggests significant capital expenditure will be required.
The global LLM market's projected growth from
- Initial setup costs for AICCs are likely to be high, potentially impacting short-term profitability.
- Revenue streams from GPU as a Service (GPUaaS) could provide steady, recurring income if adoption is strong.
- The alliance structure may limit VCI Global's share of profits, depending on the agreement terms.
- Currency fluctuations could affect profitability as the alliance expands across different countries.
The company's ability to leverage its position in the alliance to drive growth in its other business segments, such as consulting and fintech, could provide additional value. However, the lack of detailed financial projections or cost estimates in the announcement makes it challenging to accurately assess the short-term impact on VCI Global's financial position.
Investors should closely monitor future financial reports for more concrete data on the project's impact on revenue, expenses and profitability. The success of this venture could significantly alter VCI Global's financial trajectory, but it also introduces new risks that need to be carefully managed.
KUALA LUMPUR, Malaysia, July 26, 2024 (GLOBE NEWSWIRE) -- VCI Global Limited (NASDAQ: VCIG) (Frankfurt: H0T) (“VCI Global”, “VCIG”, or the “Company”), an AI and technology aggregator, is thrilled to announce its entry into a groundbreaking AI Computing Alliance (“AICA”). This is a collaborative initiative led by Enlight Corporation (TWSE: 2438) (“Enlight”), and Super Micro Computer, Inc. (NASDAQ: SMCI) (“Supermicro”) and other alliance partners including Fortinet, Inc., UNIC Technology Corp., Bingo Group Holdings Limited, J&V Energy Technology Co., Ltd., Red Building Capital, ZoobeTek, iSpan International Inc., and Bulky Animation Studio. This alliance will jointly establish AI Computing Centers (AICCs) and advance the AI ecosystem.
The first AICC, a high-performance computing facility, will be established in Taiwan. It is spearheaded by Enlight in partnership with Supermicro, Chief Telecom Inc., VMFive, Infinitix Inc., and Inventec Besta Co., Ltd. The AICC will be powered by NVIDIA H200 Tensor Core GPUs, which offer 1.43 times the performance speed compared to the NVIDIA H100 Tensor Core GPUs. With 256 units of NVIDIA H200 Tensor Core GPUs generating a total of 93 PFLOPS of AI computing power, this AICC is estimated to rank 15th globally in AI computing power, making it one of the fastest AI data centers in Asia. This AICC will deliver premier services by offering GPU as a Service (GPUaaS) for various entities such as governments, financial institutions, and businesses. The Taiwan AICC is expected to commence operations by the end of 2024.
VCI Global will serve as the strategic partner in the AICA initiatives with plans to establish the first AICC in Malaysia by the second quarter of 2025. This Malaysian AICC, which will replicate the Taiwan AICC’s model, will act as a central hub for advancing AI research, development, and application, driving industry growth and enhancing Malaysia’s prominence in the global AI landscape.
After establishing AICCs in Taiwan and Malaysia, the AICA intends to develop additional AICCs globally, including in Singapore, Hong Kong, Japan, and Indonesia. This expansion aims to meet the anticipated high demand for computing power driven by Large Language Models (LLMs) and the increasing use of AI applications. Research from MarketsandMarkets indicates that the global LLM market is expected to grow rapidly, with a compound annual growth rate (CAGR) of over
“We are excited to have VCIG to participate in the alliance to serve our interest in Southeast Asia, where we believe their involvement will further accelerate the success of the alliance. We look forward to developing our next AICC in Malaysia in the near future,” said Mr. Sam Ding, Chief Executive Officer of the AICA Taiwan.
“We are extremely excited about entering this alliance and participating in such a formidable alliance to advance the AI ecosystem to better serve the region,” said Dato’ Victor Hoo, Group Executive Chairman and Chief Executive Officer of VCI Global.
About VCI Global Limited
VCI Global is a diversified holding company. Through its subsidiaries, it focuses on consulting, fintech, AI, robotics, and cybersecurity. Based in Kuala Lumpur, Malaysia, our main operations are centered in Asia, with significant visibility across Asia Pacific, the United States, Europe, and the Middle East. VCIG primarily offers consulting services in capital markets, real estate, AI, and technology. In technology businesses, the company operates a proprietary financing platform that serves companies and individuals, as well as a secured messaging platform serving governments and organizations. We also invest, incubate, accelerate, and commercialize businesses and technologies in AI and robotics.
For more information on the Company, please log on to https://v-capital.co/.
About Enlight Corporation
Enlight strives to serve the customers by focusing on product design requirements, process and quality enhancement. In May 2019, Enlight launched a brand that provides household appliances in Taiwan through both online and offline. The company expanded into beauty and skincare markets, distributing Swiss salon skincare brand “BelleWave” and its own brand “Jubilux”.
For additional detail, please visit https://www.enlightcorp.com.tw/.
About Super Micro Computer, Inc.
Supermicro is a global technology leader committed to delivering first-to-market innovation for Enterprise, Cloud, AI, Metaverse, and 5G Telco/Edge IT Infrastructure. We are a Rack-Scale Total IT Solutions provider that designs and builds an environmentally friendly and energy-saving portfolio of servers, storage systems, switches, software, along with global support services.
For more information, please visit https://www.supermicro.com/en/.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding the Company’s ability to grow its business and other statements that are not historical facts, including statements which may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company’s ability to achieve profitable operations, customer acceptance of new products, the effects of the spread of Coronavirus (COVID-19) and future measures taken by authorities in the countries wherein the Company has supply chain partners, the demand for the Company’s products and the Company’s customers’ economic condition, the impact of competitive products and pricing, successfully managing and, general economic conditions and other risk factors detailed in the Company’s filings with the United States Securities and Exchange Commission (SEC). The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any responsibility to update the forward-looking statements in this release, except in accordance with applicable law.
CONTACT INFORMATION:
For media queries, please contact:
VCI Global Limited
enquiries@v-capital.co
FAQ
When will VCI Global (VCIG) establish the first AI Computing Center in Malaysia?
What is the projected growth of the global Large Language Model (LLM) market according to the VCIG press release?
Which companies are leading the AI Computing Alliance that VCIG has joined?
What type of GPUs will be used in the first AI Computing Center established by the alliance?
