Nvidia Sells the Brains of the AI Boom. Something Else Is Selling the Muscle -- and It's Not on Wall Street's Radar.
AI data center owners are looking to cut operating costs. One way is to drop a century-old electricity convention and replace it with something surprising.
Overview
Despite the advent of alternatives such as Alphabet's Tensor Processing Units (TPUs), Nvidia (NASDAQ: NVDA) remains the leader of the artificial intelligence (AI) data center chip market. It sold $89 billion worth of data center silicon last quarter alone.
But more than just chips go into data center operations. Processing capacity is another aspect of artificial intelligence data centers. Networking is another. Electricity is still another, along with cooling. One of these more nuanced slivers of the AI business has gone largely unnoticed by both Main Street and Wall Street. And despite what you're probably thinking, it's not onsite power like the electricity generated by GE Vernova's (NYSE: GEV) natural gas power turbines.
Details
The overlooked aspect of the modern-day AI business is the 800-volt power distribution equipment that could eventually become the industry norm, making the companies operating in this space a lot of money.
Source
Originally published at www.fool.com.