Nvidia Corp., renowned as a leading name in artificial intelligence alongside OpenAI Inc. and recently achieving the status of the most valuable publicly traded company, is solidifying its market dominance through strategic alliances, and a significant one is its partnership with  Hewlett Packard Enterprise Co.

The HPE and Nvidia partnership, allows HPE to bring its enterprise and supercomputing prowess to bear in complimenting Nvidia’s cutting-edge hardware capabilities. This collaboration not only enhances the company’s technological offerings but also sparks speculation about a potential acquisition in the future, as noted by Holger Mueller (pictured), principal analyst at Constellation Research Inc.

Constellation’s Holger Mueller riffs on the HPE and Nvidia partnership.

“There’s no convention where Jensen [Huang] doesn’t show up, and every time there’s a special connection,” Mueller said. “HPE, before the network acquisition, did an inclination to Nvidia by saying, ‘We’re going to put InfiniBand into the appliance they’re going to come up with,’ and then the Q&A was very interesting they said kind of like, ‘Nvidia needs us.’ I was thinking maybe Nvidia is going to buy HPE.”

Mueller spoke with theCUBE analysts John Furrier and Rebecca Knight at HPE Discover, during an AnalystANGLE segment on theCUBE, SiliconANGLE Media’s livestreaming studio. They discussed the HPE and Nvidia partnership as it aims to deliver innovative solutions answering modern enterprise demands, balancing the need for rapid technological advancement with stringent data privacy and security requirements. (* Disclosure below.)

The HPE and Nvidia partnership: A symbiotic alignment

For HPE, this partnership breathes new life into its on-premises solutions. With Nvidia’s GPUs integrated into HPE’s systems, enterprises gain the capability to run AI locally, meeting data residency requirements and addressing privacy concerns. This is particularly crucial for European companies, which often prefer on-premises solutions over cloud alternatives, according to Mueller.

“The HPE customer is often a European, traditional company who’s been using HPE for 30-plus years and says, ‘Trust the technology provider,'” he said. “They don’t trust the cloud for everything, so for them, it means a new lease on life for the on-premises pie. It means I can run AI locally with sovereign cloud, with data residency requirements.”

Aware of the competition from the likes of Intel Corp. and AMD Inc., Nvidia’s strategy is one of cementing a presence swiftly across various sectors by maximizing the utilization of its GPUs, both in the cloud and on-premises, a strategy facilitated by its partnership with HPE.

“If you think about Nvidia, they don’t have enterprise expertise,” Mueller said. “This is all happening recently and all the interest coming in is from the cloud hyperscaler side — which doesn’t give them the enterprise expertise either. So who is a good partner for [them], who has a long-term enterprise history and an install base … who knows how to build complex systems?”

Here’s the complete video interview, part of SiliconANGLE’s and theCUBE Research’s coverage of HPE Discover: 

(* Disclosure: TheCUBE is a paid media partner for HPE Discover. Neither HPE and Intel, the primary sponsors of theCUBE’s event coverage, nor other sponsors have editorial control over content on theCUBE or SiliconANGLE.)

Photo: SiliconANGLE