Cloud Giants Launching Specialized Servers Requiring Higher Speed Connections Such as Spectra7 Enabled Data Center Interconnects
(TSXV:SEV) (OTCQB:SPVNF) Spectra7 Microsystems Inc. (“Spectra7” or the “Company“), a leading provider of high-performance analog semiconductor products for broadband connectivity markets, announced that it is targeting the high growth Artificial Intelligence (AI) server connectivity market with its new GC1122 product designed to support 800Gbps throughput.
New technologies like the chatbot ChatGPT and others are fueling the race to build out high-performance AI infrastructure. AI requires massive amounts of computing power from specialized server hardware connected in clusters by a very high bandwidth and low latency interconnect fabric, including Spectra7’s 800Gbps technologies.
As Grand View Research cited in its latest Artificial Intelligence Market report1: “The global artificial intelligence market size was valued at USD 136.55 billion in 2022 and projected to expand at a compound annual growth rate (CAGR) of 37.3% from 2023 to 2030. The continuous research and innovation directed by tech giants are driving the adoption of advanced technologies in high-growth industry verticals, such as automotive, healthcare, retail, finance, and manufacturing”.
Specialized AI servers in particular are expected to see high growth in the next few years, growing from 1.4 million units in 2022 to 4.7 million units in 20262. The chips used in these servers are increasingly relying on 800Gbps ports to directly connect to the fabric.
“Spectra7’s low power, low latency and low-cost approach to active copper interconnects is ideal for AI server connectivity applications,” said Alan Weckel, Founder and Technology Analyst with 650 Group. “We see by 2026 the revenue from active copper cables in the data center market should hit USD 3 billion. The bulk of this will come from connections to these high-performance AI servers.”
“As computing power and speed continue to climb, driven by increasingly data intensive operations such as AI, so does the need for high-speed and low-power interconnects to enable those systems,” said Spectra7’s CMO John Mitchell. “Spectra7’s GaugeChangerTM chips bring the critical performance necessary to create the next generation of data center interconnects, and we are excited to be working with top Hyperscalers as they get ready for the shift to 800Gbps that we expect to commence later in 2023.”
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