Might Broadcom, TSMC Split Struggling Intel?Might Broadcom, TSMC Split Struggling Intel?

If, like Channel Futures, you enjoyed a long weekend, you’re returning to the cloud computing world to news of a potential Broadcom-Intel tie-up. Even though it’s early in the week, there’s quite a bit happening in cloud and AI, so let’s bring you up to speed.

Broadcom-Intel Deal Could Be Announced Soon

Reports broke over the weekend that Broadcom may buy Intel’s chip design and associated marketing business, while Taiwan Semiconductor Manufacturing Company could take over the struggling chipmaker’s plants. 

A Broadcom-Intel pairing of that nature would fit snuggly into the former’s longtime semiconductor division and likely rescue the latter from its plummeting brand recognition and market share. Intel has lost much of its ground to rival Nvidia as the AI race has exploded, and subsequently said goodbye to its CEO in December after the board insisted Patrick Gelsinger either resign or be fired. Broadcom, also a chipmaker, appears to be eyeing synergies with Intel, especially as those might relate to the powerful chips all of the cloud computing providers are buying to run their respective AI platforms.

Broadcom has cemented a reputation for buying floundering companies and running them at bare-bones levels to squeeze as much margin as possible from them. It did that with CA Technologies and Symantec, and continues to do the same with VMware — which, in recent earnings reports, is showing signs of profitability. A Broadcom-Intel union likely would put Intel under the same streamlining microscope and could lead to the formation of a formidable Nvidia competitor. 

Related:The Broadcom VMware Acquisition: A Complete Timeline

Shares of Intel had risen more than 8% by the time of this article’s publication on news of a possible Broadcom-Intel deal. Broadcom stock was down by about 3%. 

Channel Futures reached out to Broadcom for comment on the Intel reports but did not receive a response by time of publication.

AWS News: Troufanov, CISPE Updates

Israeli Employee Held Hostage Released

Next up in our cloud computing roundup, Amazon Web Services. 

First, Amazon CEO Andy Jassy has at last commented publicly now that Hamas has released AWS employee Alexander (Sasha) Troufanov, an electrical engineer. 

Troufanov was held by the Palestinian militant group for 500 days. His mother, grandmother and girlfriend, who all were captured with him, were freed in November 2023 (Troufanov’s father was killed in the Oct. 7, 2023, Hamas attacks). Troufanov was released on Feb. 15 as part of the recent ceasefire agreement between Israel and Hamas. 

Throughout the time he was detained, Amazon remained quiet on the situation. In a Feb. 15 memo to employees, Jassy said there was a strategic reason for that silence.

Related:AWS Marketplace Expands SaaS Solutions, Adds Requirements

“Since we learned of Sasha and his family’s abduction, we’ve had a dedicated team working behind the scenes with experts to support efforts to secure their release and to ensure that we did the right thing for them and their safety (including painfully not commenting publicly for fear that we would negatively impact their ability to be released or how they were treated in captivity),” he said, adding that he felt “incredibly relieved” with Troufanov back home.

Amazon's Andy Jassy

“It’s been an extremely trying time for everybody who knows and cares for Sasha — a lot of angst and feelings of helplessness. But, it can’t approach what Sasha and his family have been through, and we will continue to support them and do everything we can to help them heal,” Jassy added. “Thank you to all who tirelessly advocated for his safe return — I share your gratitude and relief that Sasha and other hostages were released today. My heart goes out to everyone who has been impacted by the war and I continue to hope that we get on a long-term peaceful path.”

AWS Off CISPE Board

Next, the world’s largest public cloud provider has been forced to leave the board of Cloud Infrastructure Providers in Europe. As Data Center Dynamics reported, CISPE, which has been active in antitrust complaints against U.S.-based providers, recently changed its rules. Now, non-European cloud vendors with more than €10 billion in revenue are no longer allowed to sit on the board. AWS remains a CISPE member but does not have voting rights.

In a statement, CISPE said the changes make it the “largest and only fully European-driven, independent trade body advocating for cloud infrastructure service providers and their customers across Europe.”

Broadcom Talks Sovereign Cloud in Europe

Speaking of Europe and the cloud, Broadcom – which entered the cloud computing market by way of its $61 billion VMware purchase – says sovereign cloud demand is growing even as debate remains around the actual definition of “sovereign cloud.”

The chipmaker funded a new study, released on Feb. 18, that analyzes the state of sovereign cloud in Europe. The report follows Broadcom CEO Hock Tan’s November 2022 assertions that cloud sovereignty is “extremely important to the future of data management, and we see VMware, with its multicloud strategy and offerings, as being a key enabler in the adoption of sovereign clouds.”

For sovereign cloud to reach its full potential, though, the industry must find consensus on a definition, Broadcom contended in its report, conducted by John David Michels of Queen Mary University of London. Michels serves as the researcher for the university’s Cloud Legal Project.

“The cloud industry faces a critical challenge: Both U.S. and European providers claim sovereignty, but legal uncertainty persists, especially in highly regulated sectors,” Michels said. “To move forward confidently, organizations need complete confidence in how their cloud data is protected and accessed. It’s time for the industry and regulatory bodies to come together to establish clear standards for both cloud providers and customers, ensuring data sovereignty while supporting innovation.”

Martin Hosken, field CTO of cloud partner at Broadcom, agreed.

Broadcom's Martin Hosken

“The push for sovereign cloud provides the perfect storm for cloud service providers in Europe to thrive,” Hosken said. “They need to position themselves as trusted partners to those organizations on their sovereign cloud journey.”

The challenge lies in classifying data based on GDPR rules as well as navigating the “complex mix” of cloud services, Hosken said.

Sovereign cloud has long been a topic of discussion in the cloud computing sector. Europe leads the way in requiring airtight, localized cloud platforms that do not leak private information across country boundaries. Whether the Broadcom-funded report results in traction toward an accepted definition of “sovereign cloud” is unknown.

Vultr Takes AMD GPUs Live, Touts Multibillion-Dollar Valuation

Vultr, which sells through the channel, says it’s the first cloud vendor to deploy the AMD Instinct MI325X GPU, which it bills as a boon for its channel partners.

The indie cloud computing provider has gone live with the AMD GPUs in its Chicago data center region. The two companies announced in December that they would team up. Vultr said the move would “foster the next phase of AI innovation,” because the strategy brings together key components needed for cloud-fueled AI, via big-name vendors. Perhaps more to the point for Vultr’s managed service providers and value-added resellers, the partnerships should accelerate end users’ AI development and deployments. 

Indeed, Vultr said on Tuesday that its end users now have priority access to top-level GPU hardware. 

“The AMD Instinct MI325X sets new AI industry standards, delivering incredible performance and efficiency for inference,” said J.J. Kardwell, CEO of Vultr.  “Together, we are unlocking new possibilities for AI innovation and shaping the future of cloud GPU infrastructure on a global scale.”

Vultr's JJ Kardwell

In December, Kevin Cochrane, chief marketing officer and partner head at Vultr, told Channel Futures that the collaboration with AMD “unites best-in-class AI infrastructure partners, enabling MSPs and VARs to help clients unlock the full potential of GPU-accelerated workloads.”

The news comes not long after privately held Vultr announced its growth financing at a $3.5 billion valuation. That investment was led by AMD Ventures and LuminArx Capital Management, and marked the first time Vultr went outside of the company for funding. Vultr was founded in 2014. It now runs 32 data centers across the globe and stands out as perhaps the premier independent cloud computing provider to offer alternatives to the hyperscalers. In December, Kardwell said that is precisely Vultr’s aim.

“With this additional financing from LuminArx and AMD, we are poised to accelerate further Vultr's growth in AI infrastructure and cloud computing, creating the category-defining independent cloud infrastructure company.”

Microsoft Investing More in Poland

We’re rounding out this cloud computing update with word that Microsoft plans to invest $700 million, on top of what it’s already poured, into Poland. 

The move intends to strengthen Poland’s cybersecurity infrastructure in tandem with the country’s military. Microsoft’s move comes as the second part of its $1 billion data center initiative in Poland, where more than half of CEOs told PwC in 2023 that their companies had to undergo digital transformation within 10 years to be profitable. As such, Microsoft is funneling more money into its Poland initiatives, centered around technologies including Azure.