Friday, July 4, 2025

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HPE Secures $4.5 Billion in Enterprise IT AI Server Orders

HPE experienced significant growth in AI-based systems during its announcement of second-quarter financial results. The company reported a 3% increase in revenue to $7.2bn, with new AI servers being delivered in just six weeks after supply chain issues were resolved.

CEO Antonio Neri highlighted the acceleration of demand for HPE’s AI offerings among enterprise customers, with AI systems revenue more than doubling to over $900m. The company also saw a doubling of its AI business from the previous quarter, with a three-fold increase in enterprise AI customers year-over-year.

Neri noted HPE’s leadership in water cooling technology for AI servers and its commitment to green IT, boasting four of the world’s top 10 fastest supercomputers, all equipped with direct liquid cooling. The company’s GreenLake offerings also saw strong demand, with an annual recurring revenue of over $1.5bn.

Despite supply chain constraints due to high demand for GPUs, HPE expects to deliver AI systems within six to 12 weeks. Neri also mentioned signs of market recovery in traditional and cloud infrastructure markets, with traditional server orders growing sequentially and year-over-year.

Overall, HPE is optimistic about the growth opportunities in AI and the continued success of its GreenLake offerings, which have been further enhanced to meet the demands of enterprise AI customers.