AI's Unstoppable Surge: Quanta Computer Chairman's Perspective

On September 27, Barry Lam, Chairman of Quanta Computer, addressed the rapid escalation of AI computing power, stating that it is doubling every three months, a pace even faster than Moore's Law, which doubles every two years. Additionally, Lam refuted the rumor that "Microsoft canceled lots of AI orders from Quanta" and emphasized that Quanta has consistently received substantial orders.

During the "AI Wave Summit – Exploring AI Technology and Application Forum" organized by the Taiwan Electrical and Electronic Manufacturers' Association (TEEMA) on September 27, Lam delivered a speech titled "Dance with AI." In the presentation, he emphasized the importance of embracing this technology in order to enhance the quality of life, despite the anxiety it might initially provoke.

Furthermore, when discussing the growing demand for AI computing power, Lam highlighted that since the introduction of ChatGPT, from GPT 3 to GPT 4, AI computing power has doubled every three months, marking a significant revolution in AI capabilities that is expected to accelerate beyond the pace set by Moore's Law. Lam also pointed out that the four tech giants, namely Microsoft, Alphabet, Meta, and Amazon (MAMA), continue to invest heavily in AI research and development. This underscores the prevailing industry direction towards AI advancement, a trend that Lam expressed optimism about.

Moreover, he stressed the paramount importance of AI technology, noting that AI has already disrupted many aspects of various industries. In the past, achieving the necessary computing power required connecting 250 GPUs together, which was a costly endeavor. However, AI has made remarkable strides, now achieving the same results while significantly reducing costs. Lam also observed that the first wave in the market is AI, the second and more substantial wave is GPT, and with different applications emerging one after another, people should focus on how to maximize the benefits.

Through its subsidiary, Quanta Cloud Technology (QCT), Quanta has successfully integrated into the Nvidia supply chain, emerging as one of the key suppliers for major AI servers used by Microsoft, Amazon, and other prominent cloud giants. They have also secured orders from major players like Google and Meta. Addressing previous market rumors about Microsoft reducing AI orders, which impacted AI stock trends, Lam refuted these claims. He clarified that the new generation of AI servers is poised for gradual expansion in the second half of the year. Demand for orders is currently robust, and it is expected that the supply chain will experience even stronger growth next year.