Advanced Micro Devices (AMD) is expanding its collaboration with Hewlett Packard Enterprise (HPE) and Broadcom to develop an open, rack-scale AI compute infrastructure for high-performance computing clusters and large-scale AI data centers. This initiative aims to accelerate global "Sovereign AI" research while offering a cost-effective and energy-efficient alternative to NVIDIA's Blackwell solutions.

HPE will be among the first system providers to adopt AMD's "Helios" rack-scale AI compute cluster architecture. The partnership will integrate a custom HPE Juniper Networking scale-up switch, leveraging Broadcom's expertise in ASIC and high-performance networking. The combined solution seeks to simplify large-scale AI infrastructure deployment and provide a competitive alternative to NVIDIA's vertically integrated offerings.

The AMD-HPE-Broadcom collaboration integrates GPU/CPU/NIC, rack systems engineering, and high-end networking silicon into a unified platform. This approach shifts AI infrastructure from a "GPU-stacking" model to a "rack-as-a-product" paradigm, catering to cloud giants like Microsoft, Google, and Amazon, as well as sovereign AI initiatives.

The Helios platform features AMD Instinct MI455X GPUs, EPYC Venice CPUs, and Pensando Vulcano NICs for scale-out networking. It will power Germany's next-gen supercomputer "Herder" at the Stuttgart High-Performance Computing Center, supporting both traditional HPC simulations and large AI models. The system is expected to go live by late 2027.

AMD CEO Lisa Su emphasized that Helios combines AMD's full-stack HPC technology with HPE's system-level innovations to deliver breakthrough performance. HPE CEO Antonio Neri highlighted the platform's ability to accelerate global AI deployments while reducing operational risks.

This strategic move positions AMD to compete more effectively against NVIDIA in large AI data center projects, transitioning from selling discrete chips to offering complete rack solutions. AMD's stock has surged over 80% this year, fueled by major contracts including a 1GW AI chip deal with Saudi Arabia's "Humain" sovereign AI system and a potential $100B infrastructure partnership with OpenAI.

Wall Street remains bullish on AMD, with Citi labeling it the "King of the Hill" and maintaining a $260 price target. The consensus price target stands at $284.67, implying 32% upside, while Raymond James initiated coverage with a $377 bull-case target. AMD projects its data center chip revenue could reach $100B annually within five years, targeting double-digit market share in AI accelerators.