Marvell CEO Matt Murphy called data center connectivity the next major bottleneck to AI growth, following the explosion in demand (and valuation) of compute and memory businesses.

Speaking at Computex, Murphy was joined by Nvidia CEO Jensen Huang to discuss the potential of connectivity to be the next investment wave.

“For the past several years, AI has created new demands on the infrastructure and we’ve seen the industry solve one major bottleneck after another,” Murphy said. “First it was compute, and the industry needed dramatically more compute in to enable AI, and Nvidia did an incredible job and became the first $5 trillion company.

“Next is the memory bottleneck. Larger models required enormous amounts of memory and bandwidth, and the memory companies are scaling aggressively now to match demand. Just recently, we’ve seen three new one trillion dollar companies emerge.

“The bottleneck is shifting again; now it’s connectivity that has redefined the limits of the infrastructure.”

Murphy described Marvell as “the undisputed connectivity leader.” He added: “When we started this journey, data center represented less than 10 percent of our revenue and we bet the farm on it. Last quarter, it was 75 percent of our revenue and growing very rapidly.”

His thesis was echoed by Huang, whose company in March invested $2bn into Marvell. “This is the next trillion-dollar company, ladies and gentlemen.”

The company currently has a market cap of $192bn.

https://www.datacenterdynamics.com/en/news/marvell-ceo-calls-connectivity-the-next-ai-bottleneck-as-nvidias-ceo-proclaims-marvell-the-next-trillion-dollar-company/?shem=rimspwouoe,