HPE lands first AMD Helios order, ups networking outlook

Hewlett Packard Enterprise said it has landed its first AMD Helios AI rack order in a $1.2 billion deal with Vultr. The company also raised its outlook for its networking unit.

The AMD Helios order by HPE is a milestone as AMD aims to compete with Nvidia to integrated AI infrastructure. HPE's AMD Helios rack features HPE Networking, 72 AMD Instinct MI455X GPUs with AMD EPYC "Venice" CPUs, AMD Pensando Vulcano AI NICs networking and AMD ROCm software.

HPE's rack for Helios also includes six HPE Juniper Networking QFX5252 scale-up Ethernet switch trays per rack to connect the AMD components.

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Separately, HPE outlined its expansion plans for its networking unit which includes data center networking, routing, campus and branch via Aruba and security.

HPE outlined the following outlook for its networking unit:

• HPE Networking revenue growth will be between the high-teens to low 20% range.
• Data center networking revenue will grow at a low-to-high 50% compound annual growth rate through fiscal 2029.
• Routing will grow at a low-to-high 20% CAGR through fiscal 2029.
• Campus and Branch will grow at a high single-digit percent CAGR through fiscal 2029. Security will do the same growth.

Meanwhile, HPE said it now expects to save $800 million in annual run rate savings by the end of fiscal 2028, up from the $600 million target.