Penguin Solutions

The bp data center in Houston is upgrading its digital infrastructure in collaboration with Penguin Solutions and NVIDIA to tackle complex energy exploration challenges. Leveraging NVIDIA’s liquid-cooled Blackwell B200 GPUs alongside Penguin's high-density SMART Memory 3840 DIMMs, on-site deployment, and integration support, the system delivers supercomputing capacity equal to 21 quadrillion operations per second, enabling seismic imaging and analytics up to 80x faster. As energy leaders turn to advanced AI and high-performance computing to accelerate exploration and analytics, this deployment demonstrates how next-generation hardware is reshaping industrial computing. EnergyTech recently broke down what this deployment means for the future of AI-driven energy infrastructure: https://lnkd.in/gD7ffRpg

Scaling AI into continuous production for AI factories requires CIOs to make a critical decision: rent GPU capacity or own their AI infrastructure. While renting offers flexibility and speed, owning infrastructure can deliver significant long-term cost and performance advantages. Understanding the total cost of ownership (TCO) is key to making the right strategic investment. Our recent blog dives into the rent-vs-own tradeoffs and reveals why cloud costs can run 4-6x higher than an owned AI factory at scale. Read the full breakdown on our blog to learn more: https://lnkd.in/eRbrYTWA

Penguin Solutions CEO Kash Shaikh highlights the momentum behind the company's standout Q3 earnings and the continued growth of our AI Infrastructure business: "Demand and customer engagement of our AI Infrastructure business within Advanced Computing remains very strong across enterprise, sovereign AI, and neocloud customers. Our non-hyperscaler AI Infrastructure business is scaling rapidly, with third quarter net sales up 81% year over year. In Q3, this non-hyperscale AI Infrastructure business represented 58% of total Advanced Computing net sales versus 33% in the third quarter of last year. The shift to inference at scale with agentic AI, aligns directly with Penguin’s AI Factory Platform strategy, and the differentiated role that we play at the intersection of memory and compute infrastructure. Our MemoryAI™ appliance continues to gain traction. It generated both revenue and new bookings this quarter. The pipeline also continues to strengthen across enterprise, sovereign AI, and neocloud customers." For more detailed insight into our strong earnings cycle driven by our AI inference strategy, read the full transcript here: https://lnkd.in/gFk3juHn

Join us at FMS: Future of Memory and Storage (FMS) 2026 in Santa Clara, where Penguin Solutions CTO Philip Pokorny will share insights in two must-attend sessions exploring the technologies shaping the future of AI infrastructure. 🔹 Unlocking AI Performance with CXL-Powered KV Cache Discover how shared KV cache architecture can improve AI inference by delivering faster time to first token, increasing GPU utilization, improving token economics, and reducing total cost of ownership. 📅 August 4 🕘 9:20 a.m. PT; Mission City Ballroom 🔹 CTO Vision Panel: The Memory Wall & the Energy Wall in the Age of AI Phil will join technology leaders to discuss one of AI's biggest challenges: overcoming the growing gap between compute performance and the memory and storage systems needed to keep pace. 📅 August 5 🕘 9:45 a.m. PT; Ballroom H Be sure to add Phil's sessions to your FMS agenda. We look forward to connecting with you there! Register here: https://lnkd.in/g_5MUjwc

Penguin's memory business net sales were outstanding at $275 million, up more than 111% year over year supported by both higher volume and pricing. Our strong results reflect a fundamental shift: agentic AI is driving sustained, structural demand for memory, reinforcing our view that this AI-driven demand is more durable than a traditional cyclical memory upturn. "We are anchoring our memory business on the data center market, where demand is driven by agentic AI. We are growing our engagements across networking, compute infrastructure, customers for their data center products," said Penguin CEO Kash Shaikh. "We exited the third quarter with a very strong backlog. This reflects robust data center-focused AI demand. This demand continues to outpace net sales growth giving us a strong backlog entering the 4th quarter." More details in our earnings call transcript: https://lnkd.in/gFk3juHn

A strategic financing move: we raised $750 million in new 0% convertible senior notes due 2031, refinanced a significant amount of our existing convertible notes, and fully paid down borrowings under our credit facility. The result: an enhanced capital structure, greater financial flexibility, and additional strategic flexibility to invest in our AI Factory Platform growth strategy. https://lnkd.in/gmiRMgCz

For the past several years, the AI infrastructure story has centered largely on GPUs, other accelerators, and high-bandwidth memory (HBM). As agentic AI moves from answering questions to performing tasks and automating workflows, infrastructure demand is broadening to include general-purpose compute, including CPUs, as well as memory, including DRAM. Our CEO, Kash Shaikh, highlighted this trend during Penguin Solutions’ two most recent earnings calls: “As inference workloads scale and agentic AI deployments accelerate, infrastructure requirements for production AI environments continue to expand across the full AI data center technology stack. Demand is increasing not only for GPUs and accelerator-attached high-bandwidth memory, or HBM, but also for general-purpose compute, including CPUs, as well as memory, storage, and networking. Every GPU deployment depends on a surrounding layer of general-purpose compute and memory. We believe this trend is strengthening demand for our memory solutions.” Read full earnings call transcript here: https://lnkd.in/gFk3juHn

"Penguin Solutions takes off, lifted by memory and AI factories" Marketscreener.com recently highlighted Penguin Solutions. The report points to the value of our Integrated Memory business where revenue more than doubled. This success was supported by the rising inference workloads, long-context models and autonomous agents. This article notes, “On the call, CEO Kash Shaikh summed up the shift this way: 'at first, AI answered questions, while agentic AI now gets tasks done'. He also argued that 'memory, not just compute' is becoming one of the main bottlenecks for large-scale inference.” The report also shed light on the tangible proof point surrounding Penguin's growth strategy, including new AI infrastructure customers, commercial validation from Dell and NVIDIA, and the rollout of ClusterWareAI. Read the full article from Market Screener for a deeper look into the factors that drove our record quarterly revenue: https://lnkd.in/eTaBMRrV?

In the upstream oil and gas industry, seismic imaging drives critical drilling decisions. To help accelerate seismic processing and unlock greater value from its data, bp collaborated with Penguin Solutions and NVIDIA to design and build a GPU-enabled high-performance computing environment in Houston, Texas. Purpose-built for modern energy workloads, the infrastructure combines NVIDIA Blackwell accelerated computing with Penguin Solutions' advanced HPC expertise to deliver the performance, efficiency, and scalability needed for increasingly sophisticated seismic imaging. “By combining Penguin Solutions’ HPC expertise with NVIDIA’s accelerated computing technology, we’re enabling our teams to use some of the most advanced physics available in seismic imaging,” said Richard Corfield, Vice President of Imaging Technology at bp. “The ability to run increasingly sophisticated algorithms at scale is helping us generate insights faster, improve operational performance, and unlock greater value from our data. This is a clear example of how technology innovation translates directly into business impact.” Learn how Penguin Solutions, bp, and NVIDIA are leveraging GPU-accelerated HPC infrastructure designed for energy workloads to transform seismic processing and unlock greater value from complex data. 🔗 https://lnkd.in/gavtYipr

Following our record quarter, MarketBeat shared insightful analysis on why Penguin Solutions may be the smartest AI infrastructure operator. “While not technically a pure-play GPU-as-a-Service or neocloud operator, Penguin Solutions (NASDAQ: PENG) is essentially in the same business, but with far less risk.” “The difference is they take on significant risk by owning GPUs, data centers, and the infrastructure to operate them, while Penguin Solutions doesn't.” This article highlighted how "Penguin Solutions is a true enabler, focusing on clients with the capacity to build their own systems and providing them with the engineering, hardware, software, and services to make it all work. This includes long-term contracts for data center operation and maintenance, which is the real story in AI.” “While the data center buildout gets the headlines today, it will be day-to-day operations and maintenance that drive revenue and cash flow in the long term.” Read the full piece from Market Beat for more details on Penguin's Q3 success underpinned by AI demand: https://lnkd.in/e3n63tW2