"Center stage for us is the AI build out, no question," declared Bill Brennan, Chairman and CEO of Credo Technology Group, in a recent interview with CNBC's Frank Holland. The discussion, following Credo's robust Q1 earnings, underscored the foundational role of high-speed connectivity in powering the artificial intelligence revolution, particularly within the vast ecosystems of hyperscaler data centers. Brennan detailed how Credo's specialized products are not just benefiting from this surge but are indispensable to its very operation.
Credo, a high-speed connectivity company, finds itself at the heart of the AI infrastructure boom. As AI clusters expand to encompass thousands, even millions, of Graphics Processing Units (GPUs), the demand for seamless, high-bandwidth communication between these powerful processors and the switches that route their data becomes paramount. Brennan emphasized, "From our perspective, it's the key enabler to the magic that happens with AI." This highlights a crucial, often overlooked, layer of the AI stack: the physical conduits enabling data flow.
The company’s active electrical cables (AECs) are emerging as a preferred solution over traditional passive copper or optical connections for several compelling reasons. Reliability stands out as a critical differentiator. Brennan explained the fragility of large AI systems, stating, "Just one connection between those 10,000 or 100,000 GPUs can take the entire cluster down." Credo's AECs are engineered to move "800 billion bits of information per second consistently over many, many years without having a single failure," a testament to their robust design and performance.
Beyond reliability, power efficiency is another significant advantage. With data centers consuming ever-increasing amounts of energy, reducing power draw per connection is vital. Credo's AECs are approximately "twice as energy efficient or half the power for a given link" compared to optical cables, offering substantial operational cost savings and environmental benefits for hyperscale operators. This efficiency is critical as companies like Amazon, Microsoft, and Alphabet forecast significant capital expenditure growth for their data centers in 2025, with increases of 42%, 36%, and 62% respectively.
Credo's foresight in developing this product line over a decade ago has positioned it perfectly to capitalize on the current AI-driven demand. The company's focus on robust, energy-efficient connectivity solutions directly addresses the core challenges faced by hyperscalers building out their next-generation AI infrastructure.
