Amazon and STMicroelectronics to revolutionize data centers

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STMicroelectronics (STM) has announced the development of a revolutionary photonic chip for artificial intelligence data centers, created in collaboration with Amazon Web Services (AWS). This strategic partnership marks an important milestone in the development of infrastructure for artificial intelligence systems.

Against the backdrop of massive investments by leading American technology companies planning to invest $500 billion in AI infrastructure as part of the Stargate project, demand for specialized components is growing rapidly. Besides Nvidia’s computing chips, the market is experiencing acute demand for memory, power, and communication system components.

“We have signed a cooperation agreement with AWS, which was directly involved in the development and plans to implement this technology in its infrastructure after production begins this year,” said Vincent Fraisse, General Manager of STMicro’s Radio and Communication Chips Division.

The innovative technology uses light instead of electricity to increase speed and reduce energy consumption in transceiver converters, hundreds of thousands of which are required for modern AI data centers to operate. The company also announced collaboration with a leading optical solutions manufacturer to use the new chips in the next generation of pluggable optical transceivers.

According to research company LightCounting, the market for such devices in 2024 was $7 billion, and is expected to grow to $24 billion by 2030. Key players in the transceiver market include American companies Coherent and Cisco, as well as Chinese Innolight and Accelink.

STMicroelectronics’ announcement reflects growing competition in the infrastructure solutions segment for artificial intelligence. With the rapidly growing need for AI computing power, photonic technologies are becoming a critically important element in the development of next-generation data centers.

Experts note that successful project implementation could significantly strengthen the company’s position in the fast-growing market for artificial intelligence infrastructure components.

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