Hewlett Packard Enterprise Co. (NYSE:HPE) stunned Wall Street on May 17 with important merger news.
That’s when the company announced it was joining forces with another historic computing firm.
See, HPE is a spinoff of the storied Hewlett Packard, one of Silicon Valley’s early computing pioneers. It said last Friday it is buying supercomputing legend Cray for about $1.4 billion.
Here’s the thing. HPE is making the move because it wants greater access to a lucrative tech platform we’ve been talking about for some time now – artificial intelligence (AI).
The timing is great. IDC says worldwide spending on AI systems will jump 44% this year to $35.8 billion.
And this ranks as a twofer. Cray remains a supercomputing powerhouse. It has won a string of government contracts over the years, which will give HPE a stable sales base.
Cray just scored a $600 million Department of Energy contract to build what is expected to be the world’s fastest supercomputer.
Let’s not forget that supercomputers play a critical role in AI, which requires massive processing power.
And today, I’m going to tell you of a hidden way to play this exciting AI merger.