Supermicro Creates Federal Subsidiary to Expand AI Infrastructure for U.S. Government Agencies

Supermicro stock rises after creating federal entity to expand government reach By Investing.com

Investing.com -- Super Micro Computer, Inc. (NASDAQ:SMCI) stock rose 4% Wednesday after the company announced the creation of a new subsidiary focused on expanding its presence in the U.S. federal market. The AI server maker established Super Micro Federal LLC to accelerate delivery of its high-performance computing solutions to government agencies. The new entity will emphasize systems that are developed, constructed, and manufactured in the USA to meet federal requirements. "Supermicro is committed to supporting the U.S. federal government in powering its next generation of technical initiatives," said Charles Liang, president and CEO of Supermicro. "Through this initiative, Supermicro will supply U.S. federal government agencies with full data center IT solutions that are manufactured and tested from our manufacturing facilities in Silicon Valley, California." The company highlighted that the new federal subsidiary will leverage Supermicro's Data Center Building Block Solutions to enable rapid customization and deployment of AI-ready systems for government agencies. Headquartered in San Jose, California, Supermicro has recently expanded its Silicon Valley operations and is exploring additional U.S. manufacturing facilities to meet growing demand. The organizational expansion strengthens the company's commitment to American innovation, domestic manufacturing, and supply chain security. The move comes as U.S. government agencies increasingly seek domestically produced technology solutions, particularly for critical infrastructure and artificial intelligence applications. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Super Micro's new subsidiary to offer AI server support to US government

(Reuters) -Artificial intelligence server maker Super Micro Computer on Wednesday said it has created a subsidiary catering to U.S. federal agencies, amid a drive to increase efficiency in the government. Shares of the company were up around 3%. The White House in April had ordered federal agencies to name chief AI officers and develop strategies to expand the government's use of the technology. Government entities such as the Federal Aviation Administration have been deploying AI to help with incident reports and risk assessment, while other agencies attempt to automate repetitive logistical and administrative tasks. "Through this initiative, Supermicro will supply U.S. federal government agencies with full data center IT solutions that are manufactured and tested from our manufacturing facilities in Silicon Valley, California," company CEO Charles Liang said. Super Micro's announcement comes a day after AI infrastructure provider CoreWeave said it would enter the U.S. federal market to provide cloud services. Super Micro is also exploring new manufacturing facilities in the U.S. to meet growing demand, it said. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Sahal Muhammed)