Singtel says Nvidia CEO Jensen Huang’s exit has not hit its AI chip deliveries

Singtel, the Singaporean telecommunications company, has not experienced any delays in receiving Nvidia chips for its AI cloud arm RE:AI, despite Nvidia CEO Jensen Huang's recent resignation and replacement by CFO Colette Kress. Yuen Kuan Moon, Singtel's group CEO, stated this on Friday, following the news of Huang's departure. RE:AI, a digital infrastructure business unit of Singtel, currently possesses 12 megawatts (MW) of capacity, with 6 MW fully contracted for the next three to five years.

The company has already deployed 4 MW of this capacity. The remaining 2 MW, scheduled for deployment by the fourth quarter of FY2027, has not been affected by Nvidia's operational changes, as the shipment of Nvidia chips is "coming on time", according to Digital InfraCo CEO Bill Chang. RE:AI currently purchases chips directly from Nvidia for local infrastructure to train and deploy AI models, keeping data within Singapore.

While Singtel's RE:AI division contributes to around 6% of the group's total EBITDA, an impact from delayed shipments would not be significant for Singtel. The company taps on a diverse range of suppliers for other components, such as memory and optical equipment, which are currently facing global shortages.