USA News Group
Commentary
Issued on behalf of Avant Technologies
Inc.
VANCOUVER, BC, July 30,
2024 /CNW/ -- Large tech companies have ramped up
their spending on developing generative artificial intelligence
(genAI), banking on big financial returns in the future. According
to a report from Goldman Sachs, these tech giants are
set to spend over $1 trillion on AI
capex in coming years, generating more and more costs along the
way. Another major private-equity firm, Blackstone Inc.
(NYSE: BX), is betting on the AI surge to continue,
predicting double that of Goldman Sachs, by including
another $1 trillion in capital
expenditures outside of the United
States. Behind the scenes are several developers
facilitating this push, providing new AI infrastructure solutions
to tech giants and clients, including from Avant Technologies
Inc. (OTCQB: AVAI), Vertiv Holdings Co (NYSE: VRT),
Microsoft Corporation (NASDAQ: MSFT), and Lumen
Technologies, Inc. (NYSE: LUMN).
Among the biggest issues facing the AI revolution is excess
power consumption from GenAI, and the demand that's put on the put
on the aging US power grid. According to the International
Energy Agency (IEA), global data centre electricity consumption
could double by 2026.
One of the solutions being presented is being presented by
Avant Technologies Inc. (OTCQB: AVAI) which recently updated
its plans for state-of-the-art facilities equipped with immersible
AI supercomputer servers—which not only offer superior processing
power, but also allow for faster and more efficient data
analysis.
Now Avant is gaining more momentum with its plans, having
recently entered an Equity Financing Agreement with leading private
investment and management group GHS Investments, which has
agreed to purchase up to $20 million
in registered Avant common stock. As per the agreement, the
timing and amounts of the purchases will be determined at the sole
discretion of Avant.
"This relationship with GHS serves as an insurance
policy, of sorts, as we continue our efforts to deliver
infrastructure solutions to AI and big data companies,
organizations, and institutions," said Kenneth L. Waggoner, CEO of Avant. "It
also covers us as we begin to explore broadening our footprint in
the technology sector beyond AI. The equity line from GHS
offers Avant the necessary capital should it become
necessary."
GHS has made investments into multiple successful
portfolio companies in the small cap space that are seeking capital
to measurably grow and scale their existing businesses to take
advantage of emerging market sectors.
Avant's latest offering targets unmet needs in the AI and
big data industry while addressing sustainability and
infrastructure concerns. The company pioneers distributed submerged
infrastructure solutions, using high-performance immersible
computer servers to tackle complex digital challenges and ensure
green energy facilities for the communities they serve.
With the rapid development of data centers, communities are
frustrated by their size and power demands. Avant provides
cost-effective, energy-efficient, high-density supercomputing
solutions tailored to AI and big data needs while maintaining
eco-friendliness.
Avant's high-density cloud infrastructure meets the
growing performance and storage needs of clients in SaaS, AI,
machine learning, and big data across industries. They plan to
construct numerous smaller data centers nationwide. Data centers
are major energy consumers, with a hyperscaler's center using as
much power as 80,000 households. Avant's approach ensures
efficient and scalable solutions.
Efficient cooling, a critical factor in data center
profitability, accounts for about 40% of energy consumption.
Avant leverages advanced cooling and energy efficiency
technologies to reduce costs for clients and maintain energy
efficiency.
As part of this initiative, Avant recently signed a
Binding Letter of Intent (BLOI) with Flow Wave, LLC
(FW), a leading Florida-based
firm specializing in immersible computer server technology. This
agreement allows Avant to acquire up to 50 state-of-the-art
immersible computer servers from FW in a transaction valued
at $50 million.
Seemingly quite bullish on the AI revolution, asset manager
Blackstone Inc. (NYSE: BX) has $70
billion worth of prospective data center pipeline in the
works, on top of its current data center portfolio of $55 billion, that includes facilities already
under construction.
"Current expectations are that there will be approximately
$1 trillion of capital expenditures
in the United States over the next
five years to build and facilitate new data centers, with another
$1 trillion of capital expenditures
outside the United States,"
said Stephen Schwarzman, CEO of Blackstone. "The need
to provide power for these data centers is a major contributor to
an expected 40 percent increase in electricity demand in
the United States over the next
decade compared to minimal growth in the last decade."
One way that Blackstone is addressing the power grid
concerns was the acquisition of Trystar, a premier
provider of electrical equipment for backup power solutions.
In particular, Trystar designs and manufactures critical
electrical power solutions for data centers and other utility end
markets. Blackstone sees Trystar's product offerings
helping to ensure power reliability, which is of increasing
importance amidst the energy transition.
"We're thrilled to be partnering with the Trystar
management team to drive the next phase of growth for the company,"
said Bilal Khan, Senior Managing
Director at Blackstone Energy Transition Partners. "Building
on our track record of energy transition investments, we look
forward to leveraging Blackstone's global scale and deep
domain expertise to further enhance Trystar's market
position."
Another developer making progress is Vertiv Holdings Co
(NYSE: VRT), which recently launched a high-density modular
data center offering for AI, dubbed the MegaMod CoolChip, which
aims to help bring capacity for AI online as much as 50% faster
than standard on-site construction.
"MegaMod CoolChip is a fully equipped critical digital
infrastructure solution that customers can deploy quickly, and with
confidence," said Viktor Petik, vice
president of Vertiv infrastructure solutions. "Factory
assembly and testing in a controlled environment help to accelerate
the time to build, as well as providing control over cost and
schedules. The addition of this solution to our portfolio provides
more flexibility to successfully accelerate AI."
Vertiv engineers have leveraged their expertise in
prefabricated solutions and AI deployment needs to develop the
Vertiv™ MegaMod™ CoolChip solutions, designed to meet ongoing
evolving AI requirements.
Recently, tech giant Microsoft Corporation (NASDAQ: MSFT)
launched a partnership with telecommunications specialists
Lumen Technologies, Inc. (NYSE: LUMN). The partnership will
incorporate the Microsoft Cloud to further drive Lumen's
digital transformation, while Microsoft has also tapped
Lumen to expand its network capacity and capability to meet
the growing demand on its datacenters due to AI.
"Microsoft has an ambitious vision for AI and this level
of innovation requires a network that can make it reality," said
Kate Johnson, president and CEO,
Lumen Technologies. "Lumen's expansive network meets
this challenge, with unique routes, unmatched coverage, and a
digital platform built to give companies the flexibility, access
and security they need to create an AI-enabled world."
Prior to this collaboration, Microsoft and Lumen
Technologies had already built a longstanding relationship.
Both companies have worked together for several years, with
Lumen leveraging Copilot to automate routine tasks and
reduce employee workloads and enhance Microsoft Teams.
By adopting Microsoft's cloud and AI technology,
Lumen can lower its technology costs, eliminate legacy
systems and silos, enhance its offerings, and develop new solutions
for its global customers.
Lumen will migrate and modernize its workloads to
Microsoft Azure, utilize Microsoft Entra solutions to secure access
and prevent identity attacks, and collaborate with Microsoft
to develop new telecom industry-specific solutions. This initiative
alone is expected to boost Lumen's cash flow by over
$20 million in the next 12 months
while enhancing the company's customer experience.
"Lumen has the network infrastructure and the digital
capabilities needed to help support Azure's mission in creating a
reliable and scalable platform that supports the breadth of
customer workloads—from general purpose and mission-critical, to
cloud-native, high-performance computing, and AI, plus what's on
the horizon," said Erin Chapple,
corporate vice president of Azure Core Product and Design,
Microsoft. "Our work with Lumen is emblematic of our
investments in our own cloud infrastructure, which delivers for
today and for the long term to empower every person and every
organization on the planet to achieve more."
Source:
https://usanewsgroup.com/2023/10/26/unlocking-the-trillion-dollar-ai-market-what-investors-need-to-know/
CONTACT:
USA NEWS
GROUP
info@usanewsgroup.com
(604) 265-2873
DISCLAIMER: Nothing in this publication should be
considered as personalized financial advice. We are not licensed
under securities laws to address your particular financial
situation. No communication by our employees to you should be
deemed as personalized financial advice. Please consult a licensed
financial advisor before making any investment decision. This is a
paid advertisement and is neither an offer nor recommendation to
buy or sell any security. We hold no investment licenses and are
thus neither licensed nor qualified to provide investment advice.
The content in this report or email is not provided to any
individual with a view toward their individual circumstances.
USA News Group is a wholly-owned
subsidiary of Market IQ Media Group, Inc. ("MIQ"). MIQ has been
paid a fee for Avant Technologies Inc. advertising and digital
media from the company directly. There may be 3rd parties who may
have shares Avant Technologies Inc., and may liquidate their shares
which could have a negative effect on the price of the stock. This
compensation constitutes a conflict of interest as to our ability
to remain objective in our communication regarding the profiled
company. Because of this conflict, individuals are strongly
encouraged to not use this publication as the basis for any
investment decision. The owner/operator of MIQ own shares
of Avant Technologies Inc. which were purchased as a part
of a private placement. MIQ reserves the right to buy and sell, and
will buy and sell shares of Avant Technologies Inc. at any
time thereafter without any further notice. We also expect further
compensation as an ongoing digital media effort to increase
visibility for the company, no further notice will be given, but
let this disclaimer serve as notice that all material disseminated
by MIQ has been approved by the above mentioned company; this is a
paid advertisement, and we own shares of the mentioned company that
we will sell, and we also reserve the right to buy shares of the
company in the open market, or through further private placements
and/or investment vehicles. While all information is believed to be
reliable, it is not guaranteed by us to be accurate. Individuals
should assume that all information contained in our newsletter is
not trustworthy unless verified by their own independent research.
Also, because events and circumstances frequently do not occur as
expected, there will likely be differences between any predictions
and actual results. Always consult a licensed investment
professional before making any investment decision. Be extremely
careful, investing in securities carries a high degree of risk; you
may likely lose some or all of the investment.
View original
content:https://www.prnewswire.com/news-releases/major-tech-firms-lead-trillion-dollar-surge-in-generative-ai-spending-302210110.html
SOURCE USA News Group