NVIDIA to Generate Revenue from 70,000 GB200 AI Servers Via ‘Stargate’ Project Driven by Sovereign AI Trends

The recent report from JPMorgan highlights a dramatic increase in demand for NVIDIA’s rack-scale solutions, driven by significant developments in the AI sector, particularly through Foxconn’s insights.

Foxconn Anticipates Significant Rack-Scale Demand Linked to ‘Sovereign AI’ Investments

The thirst for computing power seems insatiable, especially when it comes to NVIDIA, where demand has not yet plateaued. Major tech corporations and government-supported entities are currently riding the wave of AI innovation. According to JPMorgan’s analysis of Foxconn’s outlook, the ‘sovereign AI’ segment is poised to reach an astonishing valuation of nearly one trillion dollars. This surge is being propelled by ambitious projects, including the US’s Stargate initiative and Saudi Arabia’s Humain AI program, both backed by substantial governmental financial and logistical resources. Furthermore, Foxconn predicts a continued high demand for its GB200 and GB300 AI servers in the upcoming months.

Hon Hai: Sovereign AI Investment May Reach USD 1 Trillion in the Next Five Years, Becoming a New Growth Driver for the Compute MarketHon Hai believes that sovereign AI investment projects worth more than USD 1 trillion will emerge in the next five years, becoming a new and…

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This report reveals a compelling trend: investments in sovereign AI are likely to contribute significantly to NVIDIA’s financial performance. Notably, Foxconn has expressed optimism about the Stargate project, which entails collaboration among multiple firms and aims to establish a ‘mega-facility’ boasting a capacity of up to 10GW. Projections suggest that the computing power generated through Stargate could equate to approximately 70, 000 GB200 AI servers, thereby satisfying NVIDIA’s production demands for several upcoming years. This scenario indicates that NVIDIA is certainly not devoid of market prospects; in fact, opportunities abound.

NVIDIA Blackwell Ultra AI Server — Image Credits: NVIDIA

NVIDIA’s GB300 ‘Blackwell Ultra’ racks are currently experiencing a surge in production, and according to JPMorgan, Foxconn’s AI revenue is projected to see a remarkable increase of up to 63% in the coming year. The anticipated yearly demand for rack-scale solutions could surge to between 50, 000 and 60, 000 units, inclusive of all configurations, such as NVL72 and NVL36. For manufacturers of AI servers, 2025 appears to be a pivotal year, with progressive advancements anticipated to continue further.

NVIDIA and its partners find themselves at the forefront of growing AI computing demands, as indicated by the remarkable projections from JPMorgan. However, a key challenge remains: how will customers secure the required energy to operate such expansive systems? Nevertheless, this report emphasizes NVIDIA’s readiness to embrace this AI-driven era, fueled by surging consumer demand and excitement surrounding AI technological advancements.

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