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TOKYO - Subaru has chosen Hewlett Packard Enterprise’s (NYSE:HPE) Cray XD670 servers to enhance its AI development system for image recognition technology, according to a company press release. HPE, a prominent player in the Technology Hardware industry with a market capitalization of $27.3 billion, has been showing strong momentum with its shares trading near InvestingPro’s Fair Value, suggesting balanced market pricing.
The deployment aims to accelerate the development of Subaru’s next-generation EyeSight driver assistance system, supporting the automaker’s goal of achieving zero fatal traffic accidents by 2030. This contract adds to HPE’s robust revenue growth of 11.8% over the last twelve months, with total revenue reaching $31.6 billion.
The HPE servers, featuring direct liquid cooling and NVIDIA H200 GPUs, will be used to optimize AI algorithms and train inference models for the EyeSight system, which uses stereo cameras to measure distances to objects and classify them. With a healthy gross profit margin of 30.3%, HPE continues to demonstrate strong operational efficiency in its hardware solutions.
"With the energy-efficient HPE Cray XD670 that delivers twice the performance compared to the existing system, we now have an on-premises environment that allows us to maximize our use of GPU resources," said Takashi Kanai, Deputy Chief of SUBARU Lab and General Manager of ADAS Development Department.
The EyeSight technology is part of Subaru’s "All-Around Safety" philosophy, which encompasses five areas: Primary Safety, Active Safety, Preventive Safety, Passive Safety, and Connected Safety.
Subaru established SUBARU Lab in December 2020 as a hub for advanced driver-assistance systems development and AI-based image recognition. The lab collects video data from roads worldwide to train its AI systems.
The HPE Cray XD670 servers ranked at the top of computer vision and large language model workloads in MLPerf Inference v5.0 benchmarks, an industry standard for AI technology performance evaluation.
Subaru has also selected HPE Tech Care Service for technical support to maximize the value of its investment. With three analysts recently revising earnings upward and maintaining a positive outlook, HPE’s growth trajectory appears promising. For detailed analysis and more insights, check out the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks including HPE.
In other recent news, Hewlett Packard Enterprise completed its acquisition of Juniper Networks for approximately $14 billion, significantly expanding its reach in enterprise and data center networking markets. This strategic move has led Citi to resume coverage of HP Enterprise with a Buy rating, citing the acquisition as a catalyst for growth in AI, enterprise networking, and edge computing. Meanwhile, Goldman Sachs reinstated its coverage with a Neutral rating and a $22 price target, reflecting a cautious stance despite the expansion.
Additionally, Hewlett Packard Enterprise has made organizational changes by appointing technology executive Robert Calderoni to its board of directors. Calderoni will also chair a newly formed Strategy Committee, developed in agreement with activist investor Elliott Investment Management, to explore further value creation opportunities.
In response to the acquisition, S&P Global Ratings revised Juniper Networks’ outlook to stable from negative, maintaining its ’BBB’ issuer credit rating. These developments suggest a strategic shift for Hewlett Packard Enterprise as it aims to enhance its market position and explore new growth avenues.
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