Singapore Telecommunications tapped Nvidia Corp (NASDAQ:NVDA) to integrate artificial intelligence (AI) capabilities into its Southeast Asian data centers.
Singtel will offer access to Nvidia's graphics processing units (GPUs) through its regional data centers, enabling clients to utilize AI technology for digital services without the need to own and manage expensive processors.
This collaboration aligns with the growing demand for Nvidia chips, essential for handling data-intensive workloads, leading to price increases due to a global shortage, the Nikkei Asia reports.
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Nvidia, battling U.S. semiconductor technology sanctions in its key market China, remains focused on broadening its global horizons.
It is in talks to procure High Bandwidth Memory (HBM) from SK Hynix. The chip designer also tapped Samsung Electronics Co, Ltd (OTC:SSNLF) for HBM supply.
Analysts projected a $1 trillion opportunity in AI for Nvidia as Big Tech companies keep splurging on the technology.
Singtel's move into AI-ready data centers is part of its broader strategy to position its business as a key growth driver, targeting Southeast Asia's rising digital economy.
By partnering with renewable energy companies, the company aims to achieve operational net-zero emissions for its energy-intensive facilities by 2028.
Singtel is also expanding its data center presence in Southeast Asian countries, including Thailand and Indonesia's Batam Island, with plans to enter Japan and other Asia-Pacific markets.
This initiative follows a corporate reshuffle last year and a 20% stake acquisition by KKR in Singtel's regional data center business to fund further expansion.
Price Action: NVDA shares traded lower by 2.07% at $614.81 on the last check Wednesday.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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