HPE. We're wanting strong fourth quarter results and we're seeing shares at a new record high. It's all around the sales strength that we're seeing for service to power AI workloads. How resilient is that? Let's ask Antonio and Airly HPE CEO. So what's interesting about the AI server business was that it's still growing fast. But is it cool sequentially? Are you feeling confident about the purchases here?
Well, good morning, Carol, and thank you for having me today. We have an exceptional quarter and obviously one of the flagship elements of that quarter was AI, but I have to say it was more than AI. It was also a hybrid cloud business performing exceptionally well and the sort of but in general because all THEMTAR we have growth both on the traditional CPU and obviously on the I side, but on the I demand continued to be very very strong. You know, as of today, we have more than three
and a half billion dollars in backlog. That shows the momentum that's there in the market. Now we're in a significant uptake in the pipeline in enterprise AI, but in total, we have a pipeline that's a multiple of the backlogs so as we go into twenty twenty five, obviously there is a transition to the direct liquid cool set of technologies with Blackwell and Grace Blackwell, and as you know, two months ago we announced a new architecture which is
one hundred percent fund less. Direct liquid cooling is the industry first and one third more than one third of that three and a half been under a back log is already on black Bells. So we expect continue growth as we go into twenty five.
How are those black Role shipments looking. How certain.
Well, definitely is all very consistent to what we have seen. The number of customers continue to grow, The demand across four different segments continue to be very solid. You know, when I think about the AI, I think about four distinct segments. I call it the model builders and the hyperscalers, then the two your three service provider, the sovereign which is growing very rapidly in terms of interest, and the
cell cycles a little bit longer there. But in talking about large scale deployment, and we are in the process to building in the UK the UK Bristol AI Cloud and in Japan the ais T and then the enterprise which obviously the order value is significant lower, but the number of transaction is significantly higher.
But the supply side has been the issue with Blackwell in particular. How swiftly are those shipments arriving? How on track do you now feel it is?
Yeah, I will say, you know, the supply will come in due time because of the transition that Jensen and team are driving. I will not say it's problematic, It's just a transition in early part of twenty twenty five. Today we continue to ship you know, H one hundreds and the H two hundreds. But as I said earlier, Carolyn, we already have more than one third of that more than three and a half billion dollars already in Blackwell.
And a lot of that has to do with companies that lead with that technology because they want to get better performance, better image density, and ultimately lower the cost per training.
You were really interesting articulating just the breadth of demand coming from there, mentioning sovereign as well as enterprise for example. How resilient is that demand? What's interesting about your backlog, which you say is very resilient and strong, but there was a seven hundred million dollar d booking. How confident are you in some of these purchases in some of these deals that have been signed.
Yeah, So in our current more than three and a half billion dollars, are very very confident. In Q four, we booked one point two billion dollars of new orders and we decided to book a specific orders because we had specific concerns about the risk associated with that order, and we have very very strong controls in place, and we felt that because of the risk associated with even the finance inside, we felt this was not worth the headache.
And honestly, we decided to focus on the number of growing customers we have and allocated supply to the right customers. So that's why we decided to debook the specific order.
Caroline, you're also doing deals, of course. We are hearing confidence on June and PAN Networks acquisition for the early twenty twenty five. Is that just going to sell through DOJ? Do you expect with the next administration?
Yeah? Well, first of all, we have received pretty much all the approvals around the world with what I call
unconditional support. Basically, it tells you that the rest of the world sees this pro competitive and with the DOJ, we have had a very collaborative process through throughout the last several months, and we expect the transaction to close in the early part of twenty twenty five, which still is within the original timelines we stated when I announced the deal on January tenth, which was end of calendar twenty twenty four or early part of calendar twenty twenty five.
And so nothing gives me post that will not be the case. And then in addition, for the United States, this is good not just pro competitive, but also for US national security because ultimately the combination Juniper n HP provides a better ability for US to compete outside the United States, particularly when we have Chinese competitor around the globe. And remember a part of that for the United States, we provide the largest supercomputers that are doing also AI
and that requires a lot of networking. And today i Qula pac and Enterprise owns seven of the top ten supercomputers. Number one, number two, number three are HP.
Systems, well being reflected in a new record high on the share price and augustanding sounding very upbeat about eventually what Juniper does in terms of accretion. We thank you, Antonio and ery is the HPECO today