Lenovo Starts AI Server Production in India

Lenovo Group starts AI server production in India. According to reports, Lenovo Group's factory in southern India has started producing artificial intelligence (AI) servers and plans to produce 50,000 AI rack servers and 2,400 GPU servers at this factory every year.

These AI servers are designed for resource-intensive tasks such as machine learning and can meet the needs of domestic and export markets. Lenovo not only produces AI servers in Pondicherry in southeast India, but also has set up a laboratory dedicated to AI server research and development in the technology center of Bangalore to further promote the company's innovation and development in the field of AI.

"These servers will not only be used for local consumption, but also for export," Lenovo Asia Pacific President Amar Babu told Reuters. He declined to disclose any investment or recruitment targets for the R&D laboratory or the Puducherry factory.

"Our investment in AI server manufacturing and R&D in India is long-term," said Shailendra Katyal, managing director of Lenovo India. "This new laboratory demonstrates our commitment to developing cutting-edge technology 'in India for the world'."

By establishing a production base in India, Lenovo aims to respond to the growing local demand and provide support to the global market, which shows Lenovo's emphasis on the Indian market and its key position in the global transformation.

It is reported that Lenovo maintains in-depth cooperation with many of the world's top AI service providers, including NVIDIA, Cambrian and Fourth Paradigm, to fully unleash the computing power of hardware and accelerate the application of AI technology. At the same time, Lenovo also released a new generation of AI server products, such as Lenovo AWT WA 7780 G3 for AI large model training and Lenovo AWT WA 5480 G3 for AI training and push integration, consolidating its leading position in the AI server market.

In recent years, Lenovo has made major adjustments in human resources. The 2024 fiscal year performance report released by Lenovo Group shows that the group's total revenue for the 2023/24 fiscal year is US$56.864 billion, a year-on-year decrease of 8%. The total number of employees decreased from 77,000 at the end of last year to 69,500, with a layoff of 7,500 people, a decrease of about 10%. Lenovo mentioned in the "expense category" of the financial report that "in view of industry challenges", severance and related expenses of US$55 million were incurred. Lenovo mentioned in the explanation of "composition of provisions" in the financial report that "it is mainly employee termination payments" with the purpose of reducing costs and improving operational efficiency.

Due to weak PC demand, Lenovo's overall financial performance is also unsatisfactory. Despite facing many challenges, Lenovo is also actively exploring new business opportunities and technology areas. For example, Lenovo is trying to find new growth points in AI servers. Lenovo is also promoting its "one-in-one multi-end" strategy globally, hoping to enhance its competitiveness in various product lines.

Lenovo's "one-in-one multi-end" strategy aims to implant the personal intelligent body "Xiaotian" and the five modules of personal knowledge base, AI application platform, super interconnection, data security and privacy protection mechanism into AI PC, AI mobile phone, AI tablet and diversified AIoT devices through the unified AI OS of "Tianxi Intelligent Body System". The purpose of this is to enable users to have a "personal AI assistant" in different scenarios and realize applications and services that are seamlessly connected in all scenarios.