Pure Storage (NYSE:PSTG) stock fell nearly 6% on Tuesday after Wedbush analyst Matt Bryson commented on the latest developments involving Meta (NASDAQ:META) Platforms’ new AI clusters.
According to a blog post on Meta's website, these AI clusters are equipped with a staggering 24,576 Nvidia (NASDAQ:NVDA) H100 GPUs each. The new clusters are designed to accelerate GenAI product development and AI research, marking a significant milestone in Meta's technological evolution.
The company's commitment to expanding its AI capabilities is evident in its ambitious plan to incorporate 350,000 H100 GPUs into its infrastructure by the end of the year.
According to Bryson, the storage hardware “is based on the YV3 Sierra Point server platform using the latest high-capacity E1.S SSD.”
“As with servers, this architecture shift seems to move Meta from third party sourced (PSTG) to internally designed hardware,” the analyst wrote in a note.
Pure Storage’s products have been powering Meta's Research SuperCluster (RSC), which is recognized as one of the world's fastest AI supercomputers. These systems train next-generation AI models using vast amounts of data.
According to Pure Storage’s website, its products “FlashArray” and “FlashBlade” have been deployed to ensure that the supercomputer's substantial GPU and storage requirements are met efficiently.
There is no official comment from Public Storage (NYSE:PSA) on the matter yet.
Public Storage stock is up 43% year-to-date through Monday’s close.
By Senad Karaahmetovic